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.
It takes approximately 20 hours to file and prepare documents for a Belgium Civil Law (Napoleonic Code).
The corporate tax is approximately 33.99% which is 161 in the world.
Owners of a company in Belgium are not allowed to carry back a loss and may be allowed to carry forward a loss for 100 years.
The vat rate in Belgium is 21% which ranks 155 in the world.
Thin capitalization rules are in effect. A company is thinly capitalised when there is a greater proportion of debt than equity. The minimum capitalization for a Belgium Civil Law (Napoleonic Code) is EUR 6,200.
A corporate director is permitted, meaning this country is a good option if you are setting up a structure where you want to protect director liability.
The directors are disclosed in the public registry of Belgium, Belgian Chambers. Shareholders are disclosed in the Belgian Chambers.
Typically companies take 2 days to setup and there are 1 director(s) required and 1 shareholder(s) required at the time of incorporation.
Overall we think Belgium is a good option and have given it a score of 75 as an IO score, using the Incorporations.IO proprietary formula.
We can help you form a company in Belgium. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Belgium, which is required by law.
We can help you with your incorporations needs for an initial payment of just $1000.
Easy Step by Step Process:
The standard process typically takes between two (2) to three (3) weeks depending on when we receive all the required information from you. Once we receive your information, we will email you a complete set of documents for your review within 3 working days upon confirmation of payment. After executing the documents, you will need to mail them to us and we will formally submit your application for filing with the Registry. The Registry will then take about 3-8 working days to process the incorporation and produce certificates necessary for opening your bank account.
Applying for Your Bank Accounts:
Incorporations.IO maintains close working relationship within our extensive network of partner banks to help you apply for and receive banking services that are most appropriate to your specific situation. From the time of verification of incorporation it can take (1) one week to (2) two weeks to apply for and receive a bank account. We work primarily with banks that allow for remotely opened accounts to ensure you are ready to do business as soon as possible.
Applying for Payment Processing:
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we have partners that can assist you and are happy to help you with introductions that can empower your business.
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We can get started for you whenever you are ready via a US$1000 initial payment via credit card. I get notified whenever a payment is made here and would send out the welcome letter and initial forms we would need within 12 hours. If you prefer, we can also process via a phone or Skype call.
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