Belgium Tax Guide

Belgium

 Currency:   Euro

 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.

Corporate Taxation:

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

 Personal Taxation:

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

Emails:
Ferre Van Gelder: fvg@acsac.eu
Werner Van Hooghten: wvh@acsac.eu