Belgium: Income 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.

Taxpayers can recover withholding taxes (WHT) that were unduly withheld by the debtor, for example, on Belgian dividends, interest, or where a payroll tax exemption was incorrectly applied.

Pendant près de 40 ans, la Belgique a attiré des travailleurs étrangers avec un régime spécial d'imposition des cadres étrangers, les « expats ».

At the end of January, five political parties agreed to form a new Belgian government and presented the federal government agreement.

For assessment year 2025 (income year 2024), the surcharge is calculated at a rate of 9% (previously 6.75%), resulting in an increase of the corporate income tax rate from 25% to 27.25%...

Does Pillar Two really matter for the real estate sector? The scope of application is broad, the real estate related exclusions are not straight-forward...

It is once again that time of year when corporate tax returns come into focus.