Taxation of Foreign Companies
Taxation of Foreign CompaniesUpdated on Friday 11th September 2015
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Taxation regime for foreign companies
Foreign companies in Belgium are taxed on their trading profits and capital gains using the same taxation method that would apply to Belgian resident companies. A legal entity is a resident in Belgium if its main registered office or management office is located in Belgium. Our law firm in Belgium can provide complete company incorporation services if you decide to open a company here or establish the office of a foreign company.
Tax rate for foreign companies in Belgium
The corporate tax rate in Belgium applies for the worldwide income of the company. This also applies for branches or subsidiaries of foreign companies that are taxed on their foreign source income. The Belgian income source of a non-resident company is subject to the non-resident income tax. Special provisions apply for non-resident companies without a taxable permanent establishment in Belgium. Under Belgian law, these companies are subject to any tax treaties concluded between Belgium and the country of residence where foreign the company is incorporated.
The general corporate tax rate in Belgium is set at 33.99%. Small and medium sized enterprises in Belgium, which have an income of less than 322,500 EUR, are subject to a reduced corporate tax rate if they can satisfy certain conditions.
Our experts at our Belgian law firm can give you more details about other Belgian taxes, like the dividend tax or the VAT rate for companies that perform trade activities.
Other taxes in Belgium
Company owners in Belgium who want to hire foreign personnel should consider the legal provisions for the taxation of individuals. Non-residents living and working in Belgium are subject to personal income tax only on their Belgian income source. The professional income and the property income, for properties located in Belgium, fall under this category. Individuals who work in executive positions in Belgium and are on a temporary assignment in the country may be taxed according to the special expatriate regime.
Belgium has signed more than 90 tax treaties with other countries. Please contact our law firm in Belgium to find out how you can benefit from double taxation treaties and how the legislation for foreign investors influences foreign companies in Belgium.