The corporate income tax in Belgium
The corporate tax in Belgium
is payable by all companies that derive income from the country. The basis for company taxation
is company residence: a legal entity is considered a resident if its main place of business, registered office or management office is in Belgium. While resident companies are taxed on their worldwide income, other companies like branches in Belgium
are only taxed on the income derived from the country.
A common corporate income tax
does apply in Belgium but the real value of the tax is larger because of the existing surtax
. Our company registration experts in Belgium
can help you with tax compliance
in the country, regardless of your chosen business form.
The tax rate for corporate taxation
The standard rate for the corporate tax is 33% to which a surcharge of 3% is applicable, bringing the effective tax rate to 33.99%. The surtax is imposed on the adjusted corporate income tax liability.
Small and medium-sized companies in Belgium
that produce income of less than 322,500 EUR can benefit from a reduced corporate tax rate
if they meet certain conditions.
The tax year in Belgium is the accounting year. It can be the same as the calendar year or another period of 12 months. Each company must file its own tax return every year, no later than six months after the end of the financial year. Penalties apply for failure to meet the tax compliance requirements.
Other taxes for companies in Belgium
Belgium applies a withholding tax on dividends
, royalties and interest paid by a local company. The rates can be reduced if a double tax treaty
exists between Belgium and another country where the company receiving the payments is located.
A value added tax
of 21% or a reduce one of 12%, 6% and 0% applies in case of individuals or legal entities that supply goods or services. Other indirect taxes in Belgium
include the stamp duty, customs duties, gift and inheritance taxes.