Belgium 2025 Tax news
February 2025Belgium has a new federal government in 2025, and they've reached an agreement that includes some significant tax changes.
Here's a breakdown of the most important tax news for Belgium in 2025:
1. Capital Gains Tax on Financial Assets for Individuals:
- A new 10% tax (referred to as a "solidarity contribution") will be introduced on capital gains from financial assets (including crypto-assets) for individuals.
- This applies to gains accrued from the moment the tax is introduced onwards.
- There will be a tax-free allowance of €10,000 for small investors.
- For individuals with a significant stake (at least 20%) in a company, there's a €1 million tax-free threshold.
- Gains between €1 million and €10 million will be taxed at progressive rates (1.25% to 5%), and gains above €10 million will be taxed at 10%.
2. Corporate Income Tax Changes:
- Dividends: The conditions for the dividend received deduction (DRD) will be tightened for large companies.
The shareholding threshold increases from €2.5 million to €4 million, and the shareholding must be a "fixed financial asset."
Emigration of a Company: Moving a Belgian company to another country will be treated as a deemed liquidation, triggering liquidation taxes.
- Carried Interest: A specific tax regime will be introduced for carried interest income, with a maximum tax rate of 30% on movable income.
- Private Privak: The regulatory framework for Private Privak investment entities will be modified to make them more investor-friendly.
- Investment Deduction: Several changes to the investment deduction regime, including unlimited carry-forward, harmonization of rates, simplification of green investment deduction, and removal of regional certificate requirement for R&D.
- Other Measures: Increased tax-free allowance for individual tax purposes, changes to disallowed expenses for hybrid cars, increased meal voucher allowance, framework for costs proper to the employer, elimination of social liability exemption, simplification of transfer pricing documentation for SMEs, and more.
3. Digital Tax:
Belgium aims to implement international agreements on a digital tax, targeting large digital multinationals even without a physical presence in Belgium.
If no international agreement is reached, Belgium will unilaterally develop a digital tax by 2027 at the latest.
Why these are the most important:
Broad impact: These changes affect both individuals and businesses, with significant implications for investment strategies, corporate structures, and tax planning.
Alignment with international trends: The digital tax and the minimum tax for MNEs align Belgium with global efforts to address tax challenges in the digital economy and prevent tax evasion.
Revenue implications: These changes are expected to generate additional revenue for the Belgian government.
Belgium 2022 Tax Reports
April 2023Belgium's tax office announced an extension for individuals filing their 2022 annual reports.
For paper reports the filing is due by June 30, 2023, for electronically filed reports the filing date is July 15, 2023.
In case of complex annual reports the extension is till October 18, 2023 for electronically filed reports.
Belgium Electricity V.A.T.
March 2022The V.A.T on non commercial use of electricity is reduced from 21% to 6% in the period from March 1, 2022 to June 30, 2022.
The reduction for residential use is applied by the electricity suppliers automatically.
Belgium Tax Withholding Rates 2017
January 2017Starting January 1, 2017 the tax withholding rate for payments of dividends, interest and royalties to nonresident companies was increased from previous 27% to 30%.
Belgium Corporate Tax Cut
October 2016The finance minister announced in September his reform regarding a sharp cut in Belgium corporate income tax rates.
According to the plan which has not been approved yet the corporate income tax rate, currently 33.99% will be reduce to 27% in 2017, 24% in 2018 and 20% in 2019.
Belgium Tax Returns Deadline
June 2013The Belgium tax office extended the deadline for filing electronic income tax returns to October 1, 2013 compared to the previous deadline of September 18.
The deadline for filing paper returns remains unchanged till August 31, 2013.
Belgium V.A.T on Sale of Land
February 2010Belgium adopts the findings of the ECJ, European Court of Justice. Starting 1.1.2011 the combined sale of a new building and land would be subject to 21% V.A.T, including on the sale of land.
Currently the sale of land in such cases is exempt from V.AT under certain terms.
Belgium Australia New Tax Treaty
July 2009Belgium and Australia signed on June 25 , 2009 a new protocol amending the existing tax treaty between the two countries .The protocol allows for a full exchange of federal tax information between the countries.
The agreement is a significant step by Belgium to meet international standards set by the OECD Model.
For more info please see http://assistant.treasurer.gov.asu.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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