Taxes - Belgium

Updated 08/2012

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Legal requirements

Tax system

The Tax Guide deals with:

• direct taxes: individual income tax, business and corporate tax;
• indirect taxes: VAT, registration duties, inheritance tax, excise tax, environmental taxes, etc.
• 2011 Tax Guide [1 MB]
• Taxes - belgium.be portal

Direct taxes

In Belgium, there are two main types of direct taxes:

• corporate tax (ISOC) on the total income of resident companies;
• personal income tax (IPP) on the total income of residents in the kingdom.

Any profit-making, incorporated company whose registered office, principal place of business or managerial or administrative headquarters is located in Belgium is subject to the corporate tax.

• Corporate taxes - belgium.be portal

The corporate tax rate is 33 %; however, exceptions are made for companies whose taxable income is under EUR 322 500.

These taxes are collected by means of prepayment, specifically through:

• property tax;
• advance levy on income from securities;
• tax on wages and salaries withheld at source.

Indirect taxes

Any person who provides goods or services for commercial gain on an independent and regular basis as specified under the VAT Code is subject to VAT.

• VAT Code

VAT is calculated on the tax base at a rate which depends on the nature of the transaction. Rates are set by royal decree.

• VAT Base Rates

There are several optional specific schemes through which small businesses may reduce their tax burden:

• a flat-rate scheme applies to companies whose annual turnover is under EUR 750 000 (excluding VAT) and deals primarily with individuals working in specified fields;
• a exemption scheme applies to small businesses whose annual turnover is less than EUR 5 580. These companies are exempted from most of the tax obligations to which most VAT taxpayers are usually subject. This benefit is available through application at the relevant local VAT Office;
• Special tax schemes - belgium.be portal

 

Administrative procedures

VAT Identification

After receiving a client’s company number from the Crossroads Bank for Enterprises (BCE), you must register your company at the VAT One-Stop Business Shop (Form 604A).

• Crossroads Bank for Enterprises (BCE)
• One-Stop Business Shop: VAT offices - BCE

Form n°604A is available from the VAT office, the commercial court registry, and at authorised one-stop business shops as well as online at My Minfin, the portal of the Federal Public Service Finance.

• Directory of tax offices
• My Minfin

Filing a tax return

Companies subject to corporate tax (ISOC) must file a tax declaration once a year.

The return must be filed in print or electronic form within the timeframe specified by the competent authorities.

• Corporate tax return
• Corporate tax return - paper version (ISOC)
• Electronic corporate tax return

Resources

A range of information can be found on the Fisconetplus tax database.

• Fisconetplus

Check also the legislation on this topic in:

• European Union
• Austriadeen
• Belgiumenfrnl
• Bulgariabgen
• Cypruselen
• Czech Republiccsen
• Denmarkdaen
• Estoniaenet
• Finlandenfi
• Franceenfr
• Germanydeen
• Greeceelen
• Hungaryenhu
• Irelanden
• Italyenit
• Latviaenlv
• Lithuaniaenlt
• Luxembourgenfr
• Maltaen
• Netherlandsennl
• Norwayenno
• Polandenpl
• Portugalenpt
• Romaniaenro
• Slovakiaensk
• Sloveniaensl
• Spainenes
• Swedenensv
• United Kingdomen