Please note that this is not tax advice, but a general overview of taxes in Belgium. When seeking tax advice please see the Belgian government websites (below) and registered tax-advice professionals who can be found.
Types of Taxes
Belgium has two kinds of direct tax, Corporate Income Tax (ISOC) and Personal Income Tax (IPP), as well as one indirect tax, Value-Added Tax (VAT). The Belgium tax-year begins on 1 January and ends on the 31st of December and taxes must be filed by the end of June the following year. Income tax is deducted by employers from employees’ salaries and paid directly to the state.
Personal Income Tax is payable by all people living and working in Belgium unless they fall under special categories such as being granted expat status by the tax authorities. These are only given in exceptional cases, and have a cap of what is non-taxable starting at around 11,250€ for managers. Belgium uses a progressive tax method and taxes in Belgium are probably the highest in Europe going up to 53.5% for the highest tax-payers.
Corporate Income Tax is 33% for companies making over 322,500€ in taxable income and payable by all profit-making companies, organizations, associations and establishments registered in Belgium or with their main business centre or seat of management in Belgium.
Value-Added Tax is a tax proportional to the duty-free price paid by any taxable person in the exercise of economic activities, delivering goods or services stipulated in the VAT code. VAT is decided by the nature of the goods and services and is set by Royal Decree and can be either 6%, 12 % or 21%.
Useful Tax Websites
Federal Ministry of Finance – Information on completing a tax return – Currently information is available in French, Dutch and German. The English website is under construction
Invest in Belgium – Has information on corporate and individual taxes, investing in Belgium, customs, trade and labour issues.
Federal Ministry of the Economy, Self-employed and Energy – Information in French and Dutch providing a guideline for business and providing support to people wanting to start a business.