FPS Income Tax Brackets in Belgium for 2024-2025

As an open economy and one of the world’s top exporters, Belgium offers an attractive business and investment landscape with no trade restrictions. It is easy to set up a new business in this 

business-friendly tax environment. 

The taxation system in Belgium is administered by the official tax body, the Federal Public Service (FPS) Finance. Taxpayers may access MyMinfin (Tax-on-the-web), an application of FPS Finance which enables all taxpayers to manage their taxes online. The CIR 92 (Income Tax Code 1992) provides support and guidance in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding tax brackets and tax rates, for effective tax planning and to remain compliant with tax laws in Belgium.

Here you will learn more about:

• headline tax rates
• personal income tax (PIT) rates for individuals
• local income tax rates
• corporate income tax (CIT) rates

• capital gains tax (CGT) rates
• withholding tax (WHT) rates
• value-added tax (VAT) rates

Headline Tax Rates in Belgium

Personal Income Tax (PIT) Brackets for Individuals in Belgium for 2024-2025

Personal income tax (PIT) rates may vary depending on whether an individual is a resident or non-resident. Progressive tax rates apply which means that the rate of tax increases in tandem with the rise in a taxpayer’s income. Taxpayers are also entitled to a ‘tax-free allowance’ where part of the taxable income is not taxed.

Local Income Tax: Municipal Tax

Belgium imposes local municipal tax (communal tax) rates for residents and and-nonresidents. Residents are subject to municipal tax levied at rates varying from 0% to 9% on personal income tax. The average communal tax rate for residents is 7%. Non-residents are subject to a flat rate of 7%. Each municipality sets the municipal tax rate for its territory each year.

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Belgium for 2024-2025

It is assumed that any income received by a business is business income. Corporate tax is levied on both Belgian companies and Belgian permanent establishments (PEs) of foreign companies. There are exceptions to this in the case of specific categories of business such as the voluntary and education sectors.

Belgian companies are subject to CIT and Belgian PEs are subject to non-resident CIT. Companies must also be aware of a surcharge due on the final CIT amount on assessment which may be avoided if sufficient advance tax payments are made. 

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Belgium

Withholding Tax Rates for Residents and Non-Residents in Belgium

In general, withholding tax (WHT) applies to both resident and non-residents in Belgium. However, several reductions and exemptions are possible under Belgian tax law. As signatory to several double taxation treaties (DTTs), a taxpayer may benefit from the provision of these DTTs. Consequently, WHT rates may be reduced or removed by a DTT in place.

Value-Added Tax Rates in Belgium

There are several value-added tax (VAT) rates applicable in Belgium: a standard rate, an intermediate rate and a reduced rate. Further, for certain exceptional goods and services, a zero rate applies.