TKEG Expat™ (Test) Belgium Corporate Tax Guide

In Belgium, the corporate income tax (CIT) rate for small to medium businesses is 25%. Tax returns must be filed by September 30 for financial years ending between December 31 and February 28 of the tax year. For other cases, the deadline for filing is the last day of the seventh month following the end of the financial year. Extensions may be granted under certain circumstances, such as serious reasons or force majeure. The final payment is typically due within two months after receiving the assessment notice, and companies may choose to pay estimated taxes through quarterly installments.

In Belgium, VAT applies to the supply of goods and services for consideration carried out in Belgium, the importation of goods, and intra-Community acquisitions of goods. The standard VAT rate is 21%, with reduced rates of 12% or 6% applying to certain goods and services, such as housing under the social policy framework, basic necessities, pharmaceutical products, water supply, passenger transport, and hotel accommodation. Certain transactions are subject to a zero rate (exempt with the right to deduct input VAT), including exports, intra-Community supplies of goods, and cross-border passenger transport by ship or aircraft. Services such as healthcare and education are generally exempt without the right to deduct input VAT. VAT grouping allows separate legal entities that are closely linked financially, economically, and organizationally to be treated as a single VAT taxpayer, enabling them to file a single VAT return and reduce the pre-financing costs of intra-group VAT.

In Belgium, employee social security contributions are fixed at 13.07%, calculated on uncapped income. The employer's basic social security rate is 25%, supplemented by several general surcharges; for white-collar workers, the average burden is typically around 27.5%, though this varies by sector. The current basis for calculating employer contributions is subject to a quarterly income cap of EUR 85,000. Contribution rates for blue-collar workers are generally higher than for white-collar workers, and both employer and employee contributions are typically calculated on 108% of normal gross salary. Employees with a monthly salary of approximately EUR 3,270 or less are automatically eligible for the employment bonus. Statutory social security contributions are generally tax-deductible for both employers and employees; under applicable bilateral or multilateral social security agreements, certain foreign employees may be exempt from Belgian social security contributions.

In Belgium, there are no payroll taxes applicable other than those for social security contributions and income tax withholding.

For residents of Belgium, communal taxes are levied at rates varying from 0% to 9% of the income tax due. The average rate being 7%. For non-residents, a flat surcharge of 7% is due. In some cases, communal taxes may also be levied on exempted foreign-source income.