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Belgium

Taxes

This article explains the tax laws in Belgium, you have to know about taxation for a SPRL/BVBA which is the most common company type in Belgium.

Belgium taxes corporate income, whether it is accrued onshore or offshore. The headline estimated rate for income earned abroad, from our research, but seek professional advice, is 33.99%. However Belgium does not have CFC rules and undistributed profits from subsidiaries may not be taxable. Belgium may have certain incentives to transfer in foreign earned profits. Taxes are high in Belgium because the general corporate tax rate is 33%. A 3% surcharge is imposed, resulting an effective tax rate of 33.99%. SME's may be subject to reduced progressive rates under certain conditions. Belgium ranks 161th overall in terms of corp. taxation rate internationally.

The valued added tax rate in Belgium is 21.00%, which ranks Belgium as 155th overall with regards to VAT globally. In terms of other taxation, an employer will contribute 38% to the equivalent of a social security fund and an employee will contribute 13.07%. The overall complexity of the tax system is low. This is measured by average time to comply with a country's labor tax requirements is as it is 40 hours. Contributing to this is the number of yearly labor tax payments, which is 2 in BE.

Thin capitalization restrictions are not in play, except in certain cases. This refers to any sort of restrictions on given company with respect todebt-to-asset ratios.
Dividends received from resident or foreign entities are subject to CIT. However, a 95% deduction may apply if shareholder holds at least 10% of the share capital of the payer company for an uninterrupted period of at least 1 year and payer company is subject to CIT. A dividend is payments of an earnings of the business, passed by the board, to a particular class of shareholders. Dividends can be either cash payments, shares of stock, or other property.
Capital Gains are generally subject to CIT standard rate. However, a tax deferral may be available if capital gains from the disposal of shares of other companies have been subject to tax and shares have been hold for an uninterrupted period of 1 year. Capital Gains CIT exempted are subject to a 0.412% separate tax. Shares sold within one year period are taxed at an effective rate of 25.75%. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 30%. Which means that the tax authorities expects companies to pay tax on at least 30% of payments abroad on interests. A 15% tax rate may apply if interests are derived from certain bonds or savings deposit accounts exceeding certain thresholds. The dividends withholding tax rate is 30%. This should be interpreted usually that the relevant tax authorities expects relevant legal entities to automatically withhold 30% of dividend payments to non-residents. The royalties withholding tax rate is 30% This means that the tax authorities expects to withhold 30% of royalty payments abroad. Certain royalties income are taxed at a 15% tax rate. Payments to residents of EU/EEA or countries which Belgium has concluded a tax treaty with, may be tax exempted or subject to a reduced tax rates.
There is no known tax on wealth in Belgium. There are inheritance, transfer and real property taxes in Belgium. There are frequently implemented research and development tax relief in this country.

The above is not tax or legal advice for your particular facts and circumstances. Incorporations.io can refer you to an expert in Belgium who can answer all your questions. Click incorporate now if you are in a hurry, or press the free consultation button above.

Country details

Belgium
EUR
Brussels
Europe
Dutch (Belgium), French (Belgium), de-BE
10,403,000

Tax treaties

Country Type Date Signed
Antigua and Barbuda TIEA 2009-12-07
Hong Kong, China DTC  2003-12-10
Malaysia DTC  1973-10-24
Gabon DTC  1993-01-14
Ecuador DTC  1996-12-18
Oman DTC  2008-12-16
Sweden DTC  1991-02-05
Turkmenistan DTC  1987-12-17
Poland DTC  2001-08-20
Philippines DTC  1976-10-02
Spain DTC  1995-06-14
Germany DTC  1967-04-11
Romania DTC  1996-03-04
Albania DTC  2002-11-14
Tajikistan DTC  1987-12-17
Ukraine DTC  1996-05-20
Thailand DTC  1978-10-16
France DTC  1964-03-10
Argentina DTC  1996-06-12
Portugal DTC  1969-07-16
Morocco DTC  1972-05-04
South Africa DTC  1995-02-01
Senegal DTC  1987-09-29
Hungary DTC  1982-07-19
Kazakhstan DTC  1998-04-16
United Arab Emirates DTC  1996-09-30
Uganda DTC  2007-07-27
Singapore DTC  2006-11-06
Czech Republic DTC  1996-12-16
Russian Federation DTC  1995-06-16
Korea, Republic of DTC  1977-08-29
Denmark DTC  1969-10-16
Malta DTC  1974-06-28
Serbia DTC  1980-11-21
Saint Lucia TIEA 2009-12-07
Anguilla TIEA 2010-09-24
Finland DTC  1976-05-18
Former Yugoslav Republic of Macedonia DTC  1980-11-21
Turkey DTC  1987-06-02
Japan DTC  1968-03-28
Austria DTC  1971-12-29
Ghana DTC  2005-06-14
India DTC  1993-04-26
Latvia DTC  1999-04-21
Bulgaria DTC  1988-10-25
Mexico DTC  1992-11-24
Bahamas, The TIEA 2009-12-07
Brazil DTC  1972-06-23
New Zealand DTC  1981-09-15
China DTC  2009-10-07
San Marino DTC  2005-12-21
Cyprus DTC  1996-05-14
Kosovo DTC  1980-11-21
United Kingdom DTC  1987-06-01
Macao, China DTC  2006-06-19
Qatar DTC  2007-11-06
Saint Vincent and the Grenadines TIEA 2009-12-07
Azerbaijan DTC  2004-05-18
Bangladesh DTC  1990-10-18
Croatia DTC  2003-06-02
Aruba TIEA 2014-04-24
Australia DTC  1977-10-13
Greece DTC  2004-05-25
Luxembourg DTC  1970-09-17
Mauritius DTC  1995-07-04
Isle of Man DTC  2009-07-16
Venezuela DTC  1993-04-22
Ireland DTC  1970-06-24
Monaco TIEA 2009-07-15
Moldova, Republic of DTC  1987-12-17
Canada DTC  2002-05-23
Bermuda TIEA 2013-04-11
Rwanda DTC  2007-04-16
Grenada TIEA 2010-03-18
Uzbekistan DTC  1996-11-14
Lithuania DTC  1998-11-26
Bahrain DTC  2007-11-04
Chile DTC  2007-12-06
Pakistan DTC  1980-03-17
Tunisia DTC  2004-10-07
Indonesia DTC  1997-09-16
Estonia DTC  1999-11-05
Saint Kitts and Nevis TIEA 2009-12-18
Mongolia DTC  1995-09-26
Montenegro DTC  1980-11-21
Andorra TIEA 2009-10-23
Jersey DTC  2014-03-13
Israel DTC  1972-07-13
Georgia DTC  2000-12-14
Slovenia DTC  1998-06-22
Italy DTC  1983-04-29
Sri Lanka DTC  1983-02-03
Cayman Islands TIEA 2014-04-24
Egypt DTC  1991-01-03
Kyrgyzstan DTC  1987-12-17
United States DTC  2006-11-27
Kuwait DTC  1990-03-10
Iceland DTC  2000-05-23
Gibraltar TIEA 2009-12-16
Bosnia and Herzegovina DTC  1980-11-21
Viet nam DTC  1996-02-28
Belize TIEA 2009-12-29
Norway DTC  1988-04-14
Uruguay DTC  2013-08-23
Algeria DTC  1991-12-15
Seychelles DTC  2006-04-27
Dominica TIEA 2010-02-26
Guernsey TIEA 2014-04-24
Nigeria DTC  1989-11-20
Netherlands DTC  2001-06-05
Liechtenstein TIEA 2009-11-10
Montserrat TIEA 2010-02-16
Slovakia DTC  1997-01-15
Armenia DTC  2001-06-07
Belarus DTC  1995-03-07
Côte d'Ivoire DTC  1977-11-25
Switzerland DTC  1978-08-28
Chinese Taipei DTC  2004-10-13

Tax treaties Map

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Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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