Foreign Exchange Control: None
Accounting Principles: Belgium GAAP. IFRS for consolidated accounts of listed companies. Financial statements prepared annually.
Business Entities: Principally, corporation (SA/NV), limited liability company (SPRL/BVBA) and branch of a foreign company.
Residence: If registered office, principal establishment or place of effective management in Belgium.
Basis: Resident companies subject to tax on worldwide income; non-resident companies subject to non-resident income tax.
Rate: 33% with reduced rate for small and medium companies if certain conditions are satisfied.
Foreign Tax: Tax credit for foreign withholding tax levied on foreign source interest and royalties.
Other: Deductions available for R&D, interest expenses, royalties, excess accounting profits.
Tax Year: Accounting year
Residence: Resident individuals subject to tax on worldwide income except for profits on foreign businesses; non-resident individuals only taxed on Belgian-source income (Resident if domicile or place of management of personal affairs/wealth is in Belgium).
Rate: Progressive up to 50%
Capital Gains: If asset has been used for business activities for > 5 years tax rate of 16.5% applies.
Other: Capital duty: Fixed fee EUR 50.
Stamp duty: On some transactions in financial instruments.
Capital acquisitions: 10% or 12.5% depending on region with reduced rate available in certain cases.
Real property tax: 1.25%-2% of notional rental income of owned and, buildings and industrial equipment.
Inheritance Tax: between 3%-30%
Social Security: 0.05% – 13.07% for employees
VAT: Rate is 21% and there is no de minimis threshold
Member Firm: AC’s Accountants