Belgium: Tax

The Belgian Constitutional Court has ruled on the temporal scope of a new tax regime that presumes good faith for first-time infringements, determining whether taxpayers involved in disputes over assessments issued before the law's effective date can benefit from more lenient treatment. The decision addresses three key challenges: the temporal limitation of the new rules, the exclusion of good-faith presumption for ex officio assessments, and the absence of an equivalent regime for VAT.

Employees working across borders often continue their existing pension schemes during temporary foreign employment, but this seemingly straightforward practice raises critical tax considerations that are frequently overlooked. When foreign pension contributions fail to meet specific exemption criteria under Belgian tax law, they may be treated as taxable income, potentially leading to economic double taxation at the payment stage. Recent guidance from Dutch tax authorities on their "balance scheme" mechanis

Debt is not separately defined for Belgian tax purposes, hence in principle the civil law definition prevails.

Belgium's tax administration has issued a crucial circular clarifying the application of the new capital gains tax on financial assets, addressing key uncertainties around realization timing, earn-out structures, partnership vehicles, and historical exemptions. The guidance provides essential insights for taxpayers navigating payment modalities, matrimonial property regimes, and the complex interaction between the tax and existing corporate structures.

Belgian family offices and fund-of-funds utilizing the Privak regime face unique challenges when investing through Luxembourg structures, particularly regarding tax-neutral status requirements and participation exemption conditions. The look-through treatment of transparent entities like SCSps can create complications with underlying assets, prompting the need for alternative structuring solutions that maintain compliance while accommodating diverse investor bases.

The European Commission has unveiled its most comprehensive EU direct tax framework review to date, shifting policy focus from anti-avoidance measures toward competitiveness and simplification. The Tax Simplification Package promises EUR8 billion in annual savings through sweeping changes to withholding taxes, dividend taxation, interest limitation rules, and cross-border structures. These reforms will fundamentally reshape how businesses structure their European operations, requiring careful analysis of ex

Debt is not separately defined for Belgian tax purposes, hence in principle the civil law definition prevails.

The new edition of the EU Tax Alert is available. With this publication we would like to keep you informed about the latest developments on EU tax law. We have summarised the highlights of this edition below.

Depuis le 1er juillet 2025, un nouveau régime de TVA s'applique aux opérations de démolition et de reconstruction de logements en Belgique.

The Belgian Constitutional Court has ruled on the temporal scope of a new tax regime that presumes good faith for first-time infringements, determining whether taxpayers involved in disputes over assessments issued before the law's effective date can benefit from more lenient treatment. The decision addresses three key challenges: the temporal limitation of the new rules, the exclusion of good-faith presumption for ex officio assessments, and the absence of an equivalent regime for VAT.

The European Commission's proposal for an EU Inc. promises faster, digital incorporation and more harmonised corporate structures across Member States. But can this new framework genuinely reduce legal fragmentation and strengthen Europe's competitive position, or does it simply add another layer to an already complex corporate landscape?

The Belgian federal government has introduced a new 10% capital gains tax that applies retroactively to gains realized from January 1, 2026. This tax change directly impacts funds registered for marketing in Belgium, requiring immediate updates to their Belgian country supplements to ensure compliance with the new regulations.