Tax Reforms Hub Belgium

Latest federal and regional tax measures

Scroll down for a summary and analysis of the latest tax measures put forward by the federal and regional governments.

General tax reform | October 2022

Finance Minister prepares first set of tax measures as part of the “broader tax reform”

The Finance Minister has prepared a first set of measures as part of the “broader tax reform”. He was mandated to do so following the Government agreement on the Federal Budget 2023/2024. The plan would be to discuss these measures within the Government in the course of November/December 2022.

Major individual tax measures

  • Benefits in kind
  • Stock option plans, carried interest and other management incentive schemes
  • Tax deductibility of second pension pillar premium payments
  • Abolition of various tax benefits
  • Partial wage tax exemption regimes
  • Neutrality of cohabitation
  • Tax-free sum

Major business tax measures:

  • Dividend taxation
  • Costs relating to the acquisition, holding and disposal of shares

Major indirect tax measures:

  • VAT e-invoicing and e-reporting
  • Excise taxes on tobacco and new products
  • Phasing out of fossil fuel subsidies

Federal Budget 2022 | October 2022

Overview of most important tax, energy and social measures

Direct tax measures:

  • Temporary “Belgian minimum tax”
  • Notional interest deduction
  • Non-deductibility of financial sector levies
  • Foreign tax credit for royalties
  • Author’s rights
  • Reduction of tax burden on labour
  • Tax reduction for long-term savings

Energy measures

  • Temporary excess profits tax
  • Temporary solidarity contribution for fossil fuel companies
  • Indirect taxes and excise duties on gas and electricity

Social (security) contributions

  • Employers’ social security contributions and indexation
  • Indexation of company contribution

Tax Procedure | October 2022

Major changes in tax procedure in the pipeline

On 3 October 2022, the Belgian Federal Government introduced a draft bill (Dutch | French) containing various tax and financial provisions to the Chamber of Representatives, aiming to introduce a variety of changes in the tax procedure:

  • Extension in specific cases of investigation and assessment periods
  • Extension in specific cases of the limitation period of the claim for payment of VAT (Dutch | French)
  • Extension of the objection and retention periods
  • Penalty payment in case of tax investigation obstruction

Reduction of labour costs | March 2022

Significant amendments to partial wage tax exemption regimes

The major tax measures included in the Law on the reduction of labour costs concern:

  • a reduction of the special social security contribution;
  • amendments to the wage tax exemption regimes;
  • a new tax on boarding aircrafts; and
  • an increase of excise duties on tobacco. 

Law of 21 January 2022 on Miscellaneous Tax Provisions

Overview of major corporate and individual tax provisions

The Law of 21 January 2022 on Miscellaneous Tax Provisions [Dutch | French] includes various new tax measures.

Some of the most eye-catching ones relate to:

  • Fee reporting obligations
  • Recharged costs
  • Charging stations for electric vehicles
  • Foreign losses

Program Law | December 2021

New tax regime for inbound taxpayers and inbound researchers

As part of the federal 2021 budget agreement, the Belgian government introduced a new tax regime for “inbound taxpayers and inbound researchers”, replacing the previous “special tax status for foreign executives” as from 1 January 2022. The new regime is embedded in the Program Law of 27 December 2021.

Income tax measures
  • New tax regime for “inbound taxpayers and inbound researchers”;
  • Changes to the tax benefits for sportspersons and sports clubs;
  • Changes to the tax regime of regulated real estate companies (GVV / SIR);
  • Non-deductibility of amicable settlement and regularization levies;
  • Tax reduction for day care;
  • Changes to the tax shelter regime for start-ups and scale-ups;
  • Increase of tax beneficial overtime with overtime premium in construction industry;
  • Extension of the validity of meal and eco vouchers.
Indirect tax measures
  • VAT: changes to the VAT treatment of the supply of furnished housing;
  • Excise duties: changes for professional diesel and energy.

Greening Mobility in Belgium | November 2021

New tax regime for company cars 

As part of the Federal Government’s plans to reduce the CO2 emission of cars, a new tax regime for company cars has been enacted. The bill also extends the scope of the mobility budget regime, to encompass other sustainable modes of transport and additional types of cost.

Belgian Official Gazette Dutch | French // Parliamentary Documents Dutch | French

Tax Policy Note | November 2021

A glimpse into the Government’s tax policy ambitions and objectives for the coming year(s)

For those who want to get an idea of the tax policy priorities of the Federal Government, the Finance Minister’s Policy Note published on the Belgian Chamber’s website in November is mandatory reading. In this overview, we will focus on the most relevant tax ambitions and objectives in the Policy Note for tax practitioners dealing with corporate tax, individual tax, VAT, international tax or private wealth.  

EU VAT e-Commerce Package | July 2021

New VAT rules for e-commerce applicable as of 1 July 2021

The goal of the EU VAT e-commerce package is to simplify cross-border B2C trade in the EU, ease the burden on businesses, reduce the administrative costs of VAT compliance and ensure that VAT is correctly charged on such sales. EU businesses will be able to compete on an equal footing with non-EU businesses that charge VAT.

Corporate Mobility | March 2019

The Mobility Budget, a second alternative to the company car

The Federal Government set itself a very ambitious goal to create a shift in mobility behaviour by providing an alternative to the current company car schemes, with the aim for such alternative to be cost neutral for all parties involved.

Belgian Official Gazette (Dutch | French) // Parliamentary Documents (Dutch | French)

Corporate Mobility | December 2018

The Mobility Allowance, an alternative to the company car

The Law introducing a mobility allowance puts forward a favourable tax regime for employees willing to trade in their company car for a monthly cash amount ("Cash for Car"). The Law addresses a broad scope of aspects, including personal income tax, social security, labour law and corporate tax.

Belgian Official Gazette Dutch | French // Parliamentary Documents Dutch | French

VAT on Immovable Rent | October 2018

Optional VAT on immovable rent

The Belgian government has decided to introduce the option to subject immovable rent to VAT for projects as of 1 October 2018, adding a valuable alternative to exploit real estate in Belgium. The objective of the new regime is to provide companies flexibility in how they exploit their real estate, allowing landlords to deduct VAT on their investments.

Belgian State Gazette Dutch | French // Parliamentary Documents Dutch | French

Corporate Tax Reform | December 2017

A story of give and take

Key measures in the 2017 corporate tax reform (Dutch | French) include a general rate reduction for all companies, a number of incentives to promote investment, and an important set of compensatory measures to keep the rate reduction budget neutral. Various repair changes were implemented, mainly by means of the law dd. 30 July 2018 (Dutch | French) (published in the Official State Journal on 10 August 2018).

The corporate tax reform is carried out in three separate phases:

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