Corporate Tax in Belgium

The Belgian corporate tax

The corporate tax rate in Belgium is 25%. Targeted corporate income tax rates apply if the taxable profit does not exceed a certain value. A lower progressive tax rate may apply to companies under certain circumstances.

Companies in Belgium are liable for income tax if:

• they have legal personality; 

• they have their main management office in Belgium;

• they perform activities in Belgium that bring profit.

Different types of companies in Belgium may be subject to different taxation provisions. Our lawyers in Belgium can provide legal assistance regarding this matter.

Corporate tax rates in Belgium

The common tax rate in Belgium is 25%. The former 3% crisis surcharge (33.99% in total) was abolished from 2020. A special targeted income tax rate applies to small companies (article 1:24 of the Code of Companies and Associations): 20% on the first EUR 100,000 of taxable profit. This lower progressive tax rate applies to companies if they are not 50% or more owned by other companies. Other additional conditions that need to be fulfilled by companies that wish to benefit from lower tax rates relate to the activity of the company, its shareholders and the payment of a minimum remuneration to at least one director (EUR 45,000, raised to EUR 50,000 and indexed by the 2025-2026 reform, or the taxable profit if lower).

The current corporate tax rates in Belgium are:

• – 20% for a taxable net profit of up to EUR 100,000 (qualifying SMEs only);
• – 25% for the part of taxable profit above EUR 100,000;
• – 25% on all profits of companies that do not qualify for the SME rate;
• – the former rates of 24.98%-35.54% and 33.99% no longer apply.

Our attorneys in Belgium can help you calculate the rate of the progressive corporate tax in Belgium, according to the type of activity in this country.

Tax rate calculation in Belgium

The net taxable profit is collected globally. The calculation of the net taxable profit made on the basis of the financial profit is done according to:

• – innovation income deduction (which replaced the patent income deduction in 2016);
• – allowance for corporate equity;
• – investment deduction;
• – deduction of non-taxable items;
• – deduction of previous losses.

Companies in Belgium must make advance payments in four installments, as such:

• – for the first quarter: until April 10th;
• – for the second quarter: until July 10th;
• – for the third quarter: until October 10th;
• – for the fourth quarter: until December 20th.

In Belgium the fiscal year is usually regarded as the calendar year.

Our law firm in Belgium offers complete tax planning services in Belgium,  professional assistance and counselling according to your business needs. Please contact us for more information.