Corporate taxes in Belgium as of 2024

Enterprises in Belgium are obliged to pay corporate tax on their earnings. Nevertheless, there are a series of exemptions and tax credits for some kinds of enterprises.

The rate you must pay contingent not only on a kind of business but also on the amount of your revenue.

Entities are obliged to file their company tax return every year and submit quarterly payments. Firms can deduct a variety of expenses prior to computing their total revenue when filing their tax returns.

This article will help you to comprehend all details regarding corporate tax in Belgium.

Who pays corporate tax in Belgium?

Firms, associations, bodies, and establishments with regional registered offices are all subjected to pay the tax.

Freelancers, sole traders, and partners who cooperate are obliged to pay income tax.

Freelancers, who work in a country for more than 183 days are considered residents of a state. Therefore they are obliged to pay tax on their global revenue.

After taking away social insurance and other permissible charges, the revenue that remains is taxable income.

Corporate tax rates in Belgium

Local tax rate is 25% this year.

Enterprises that are more than 50% possessed by individuals or have smaller earnings are subjected to a reduced rate.

After the government’s evaluation, firms are obliged to pay a surcharge of 6.75% on their eventual company tax bill. But enterprises are able to escape the charge when they pay a sufficient tax beforehand.

If an organization has earnings less than €100000, it pays a reduced rate of 20%.

However, an enterprise has to adhere to specific rules in order to apply for this reduced rate.

In addition, there are some tax credits for Belgium enterprises, such as those for patents, research, and R&D.

VAT in Belgium

Provided that your firm sells items or services, you are obliged to pay VAT (and charge it from your customers). Keeping an account and receipts is vital.

The tax rate is 21%. It must be paid every month or every quarter, and firms are able to return tax on their professional expenses.

Small organizations can claim exceptional VAT threshold in Belgium, provided that their turnover is under €25000. In these circumstances, you are able to apply for petite enterprise/kleine onderneming, which frees you from tax.

Provided that you sell items to another VAT-registered enterprise inside the EU, the client will pay tax depending on their state’s rate.

In case you purchase items from another EU state, you pay tax at Belgian rates.

How to file your company tax return in Belgium

The time limit to file 2023 company tax returns is 7 months after the end of the company’s financial year. Assuming the financial year follows the calendar one, the time limit would be July 31, 2024. Enterprises no longer get paper tax forms here. Instead, they need to file the return electronically through the government’s Biztax app.

Conclusion

Eventually, the ultimate tax bill will be based on such aspects as size of an entity, turnover, quantity of workers, the industry sector, etc.

Tax implications of every country always have to be checked, so for the full comprehension you ought to use the assistance of a local tax expert.