Company Formation Belgium

CHECK COMPANY
NAME AVAILABILITY (Step 1)



Articles

Paying Taxes in Belgium

Updated on Monday 10th April 2017

Rate this article
5 5 1
based on 2 reviews


Paying_taxes_in_Belgium.jpg

Taxation in Belgium

 
Any company operating in Belgium, as well as individuals earning an income in the country, need to comply with the special requirements for taxation. Companies also need to comply with the existing accounting principles and the filing of the annual financial statements.
 
The tax year in Belgium is generally the same as the calendar year and the annual tax returns must usually be filed until June 30 of the year following the tax year. Penalties apply for late filings and noncompliance. 
 
If you want to open a Belgian company, our agents can help you know everything about paying taxes in Belgium. 
 

Taxes for companies

 
A company is considered a Belgian resident legal entity if it has its main operating office or management office in Belgium. Resident companies are taxed on their worldwide income and non-resident companies are taxed only on their Belgian-source income. For these types of companies, like branches in Belgium, special taxation rules can apply. According to law, 95% of the dividends received by a Belgian company, regardless of the source, is exempt from tax. The last 5% is subject to the normal tax rate.
 
The general corporate income tax for companies in Belgium is 33%. A surcharge of 3% brings the effective tax rate to 33.99%. Small and medium-sized companies with an income of less than 322,500 euros are subject to a lower rate, provided that they comply with certain requirements. An alternative minimum tax can apply for large companies that distribute dividends and hat offset the losses carried forward against their taxable income. This fairness tax as it is referred is only due in some cases.
 
Other taxes for companies in Belgium include the withholding tax on dividends and royalties, the payroll tax, the real property tax, the social security tax or the transfer tax, which applies to the transfer or lease of Belgian real estate. Belgium does not impose a branch remittance tax, not a stamp duty tax or a technical service fees tax. 
 
The tax tear in Belgium is the same as the accounting year. It can be the same as the calendar year or another period of 12 months. Tax returns should be filed at least one month following the date on which the annual general meeting of shareholders approves the financial statements. However, this cannot take place later than six months following the end of the financial year. Penalties do apply for failure to comply with the filing requirement and dates and are calculated according to an estimated annual income for the respective Belgian company.
 
If you want to open a company in Belgium our experts can help you with tax compliance.
 

Taxes for individuals

 
Residents in Belgium are taxed on their worldwide income derived from salaries and wages as well as any income derived from owning real estate, securities, and other capital investments. An individual is considered a Belgian resident if he or she have their domicile in Belgium. Non-residents only have to pay taxes on their Belgian-source income. Employees in Belgium need to pay social security contributions, ranging from 0.05% to 13.7%. Married couples can file a joint statement but their incomes will not be aggregated. The tax year for individuals is the same as the calendar year and the deadline for filing the annual tax return is generally on June 30th. 
 
For more information about paying taxes in Belgium or if you want to open a Belgian company, please contact our company formation experts in Brussels.
 
 

Comments

There are no comments

Comments & Requests


Please note that client queries should NOT be posted here but sent through our Contact page.

Meet us in Antwerpen


Call us now at (+31)-765870401 to set up an appointment with our consultants in Antwerpen, Belgium. Alternatively you can incorporate your company without traveling to Belgium.

As our client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Belgium.

Attend our Free Event!

Online Incorporation

tax-calculator-belgium

Tax Calculator

tax-calculator-belgium

Testimonials

Francesco-Dagnino.jpg

I was looking for a reliable company formation team in Belgium for one of my clients when I found CompanyFormationBelgium.com. They were very responsive and offered high quality company incorporation services at very competitive prices.

Francesco Dagnino, Partner of
Lexia Avvocati
www.LawyersItaly.eu

Read more testimonials

We Recommend ClientPedia

This website is marketed by ClientPedia

Banner-Promoting ClientPedia-244px.jpg