Belgium
Taxation in Belgium
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Taxation in Belgium
Corporate income tax
Belgian companies, as well as those Belgian branches of foreign companies, are taxed on their foreign source income. Foreign companies are taxed at a rate of 33.99%. For smaller companies, whose taxable profits don't exceed EUR322,500, the tax rate falls to 24.98%.
Individual income tax
Individuals are taxed on their worldwide income. It is based on salaries and wages, property (real estate) income, self-employment income and any other income earned.
Possible tax deductions include professional expenses, special deductible expenses and personal deductions and allowances. The individual income tax rate varies hugely, relating to the net taxable income from 0% to 50%.
- 25% on income between 1 and 7,900
- 30% on income between 7,901 and 11,240
- 40% on income between 11,241 and 18,730
- 45% on income between 18,731 and 34,330
- 50% on income of 34,331 and over
VAT in Belgium
- VAT is 21%
- Reduced rate 6/12%