Dividend Tax in Belgium
Dividend Tax in BelgiumUpdated on Friday 08th May 2020
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Dividends in Belgium
Belgian companies need to comply with the progressive Belgium tax system. The taxation method has five stages, starting from 25% and reaching a maximum of approximately 50%, depending on the income. However, in order to avoid double taxation, Belgium has concluded more than 70 double tax treaties with various countries.
The Belgian dividend tax
The dividend tax is the income tax on dividend payments made to the company’s shareholders. Regarding Belgian subsidiaries, dividends received by a Belgian company with a participation of at least 10% or an investment of at least 2.5 million euros in the distributing company are 95% deductible from the fiscal profits of the recipient. The condition for this to apply is for the shares to have been held uninterrupted for at least one year. The remaining amount of 5% is taxed at a normal corporate tax rate.
If no exemption or reduced rates apply, the default rate is 25%. A rate of 15% applies for dividends from residential real estate investment companies and a rate of 10% applies for liquidation dividends until October 1st 2014; after this date, the withholding tax on dividends will be 25%.
The 95% deduction does not apply if the profits of the payer are subject to a tax regime that has significantly more advantages than the Belgian tax system. However, this applies only for companies established outside the European Union.
Our Belgian lawyers can provide more information about the dividend tax in Belgium.
Other Belgian taxes
The corporate tax rate in Belgium is 33,99%. The net taxable profit in Belgium is calculates globally. Belgian companies must make advance payments throughout the fiscal yeah.
The Value Added Tax (VAT) in Belgium is 21%. In certain cases reduced rates of 12%, 6% and even 0% are applicable. Our lawyers in Belgium can help you with VAT registration in Belgium.
For more information about the taxes applicable to different types of Belgian companies, please contact our law firm in Belgium. We can offer you tax advice and planning services and other necessary legal support.