Tax Minimization in Belgium
Tax Minimization in BelgiumUpdated on Friday 08th May 2020
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Tax minimization for Belgian companies
Tax minimization in Belgium is part of the general tax planning strategies used by a Belgian company. The process means more than just avoiding to pay more taxes than needed. It involves careful investing and comprehensive and dedicated financial planning.
Our law firm in Belgium can help you with basic tax planning services or with elaborate taxation investment and planning strategies.
Tax minimization strategies in Belgium
Foreign entrepreneurs in Belgium should know that tax minimization is legal and different from tax evasion. Business owners are entitled to try and reduce the amount of taxes they must pay through legal ways. Tax lowering strategies can be used by any type of company in Belgium and even by individual taxpayers.
Donations can be used as a strategy to minimize taxes. The donations can be made as a percentage of the adjusted gross income or by giving away other assets. Common types of donations include cash donations (the most common type of donation and the easiest to value), donations of intangible assets (such as securities) or donations of tangible assets (Belgian real estate donations, various property and other assets). While some donations are deductible, others may not be or be limited. Our Belgian law firm can provide detailed information on this matter.
Contributions to existing retirement plans can be maximized and become a tax saving strategy. Other options for effective tax planning include bringing forward the tax deductions into the current financial year, using the capital gains discount, setting up a company in Belgium (and use it as a separate legal entity).
Our law firm in Belgium can help you create the best tax planning strategy according to your type of company and its specific business needs.
Taxes in Belgium
The corporate income tax in Belgium is 33.99% and applies to the worldwide income. A participation exemption applies in Belgium and is also available for the taxation of dividends. The value added tax is set at a standard rate of 21% and reduced rates apply in certain cases.
The tax year in Belgium is the same as the calendar year and the annual tax return must be filled by June 30th the following year. Belgium has signed double tax treaties with more than 90 countries.
If you want to know more about the legislation for foreign investments in Belgium or are interested in various legal services, please contact our Belgian lawyers for a personalized offer regarding tax planning in Belgium.