The International Monetary Fund (IMF) issued its most recent report concerning Belgium’s tax changes
. The IMF has advised Belgium on different occasions that it should consider reducing some taxes for companies and also look towards eliminating certain VAT concessions. Our Belgian company formation agents
give you more information about what these tax changes could mean for your business in the country.
An indirect tax shift in Belgium
The International Monetary Fund’s report on Belgium found that a reduction of the corporate income tax
would be appropriate. Moreover, the report also found that the elimination of the VAT concessions would be favorable.
While Belgium has made it clear that it intends to reduce the personal income tax and the social security contributions from 2018 thru 2020, officials never mentioned the intention to apply a corporate tax reform.
The International Monetary Fund’s recommendations include an increase of the environmental taxes and the elimination of several key deductions and exemptions, including ones that refer to the VAT. The IMF highlighted the fact that the plan to reduce the high corporate income tax would certainly have its merits.
After they decide to open a company in Belgium
, investors are required to register the company for tax purposes and comply with the taxation and reporting requirements.
Taxation in Belgium
Resident companies and individuals in Belgium are taxed on their worldwide income while non-resident and companies, like branches in Belgium
, are only taxed on their income derived from the country. The general income tax rate is 33% while small and medium companies having their income below a certain amount are taxed at a reduced rate.
Special withholding taxes and reduced rates may apply if a non-resident company in Belgium has its main headquarters in a country with which Belgium has signed a double tax treaty