Corporate Tax in Belgium: Rates, Filing, Incentives & Compliance

Corporate Tax in Belgium: Rates, Filing, Incentives & Compliance

Corporate tax in Belgium is a direct tax on the profits of a Belgian resident company as well as on a foreign company that carries on a business activity in Belgium and the tax will be applied on the net income of the business with a standard rate of 25% while an SME will benefit from a reduced rate of 20% on the first €100,000 of taxable profits and additional deductions such as an investment deduction and a notional interest deduction will further reduce the effective tax burden on the company.

This blog will explain everything you need to know about corporate tax in Belgium.

What is Corporate Tax in Belgium?

Corporate tax in Belgium is a direct tax levied on the profits of companies and certain other legal entities. It applies to both Belgian-incorporated companies and foreign entities that conduct profit-making activities in Belgium. The tax is imposed on the net income of the business after allowable tax adjustments, with the standard rate set at 25%. Certain organisations, such as non-profits or educational institutions, may be exempt. 

Who Is Subject to Corporate Tax in Belgium?

Corporate tax in Belgium is applied on the profits of a company depending on its residency status:

• Belgian-Resident Companies – A company whose registered office or main establishment or place of effective management is in Belgium will be taxed on its worldwide profits. This includes income earned both inside and outside the country.
• Foreign Companies – A company that is established under foreign law and that operates a permanent establishment or carries on a business activity in Belgium will be taxed only on the profits sourced in Belgium.
• Exempt Entities – Certain organisations such as a non-profit body or an educational institution or a voluntary sector organisation are not subject to corporate tax and will instead fall under the regime of the tax on legal persons.

Corporate Tax Rates in Belgium

Corporate tax in Belgium is levied on the net income of a company. The standard corporate tax rate is 25% and it has been in place since the tax year of 2021.

An SME that meets the required conditions will benefit from a reduced rate of 20% on the first €100,000 of taxable profits. Any profits above this threshold will be taxed at the standard rate of 25%.

Certain sectors and specific transactions fall under special rates that are defined in the Belgian Income Tax Code.

Organisations such as a non-profit body or an educational institution or a voluntary sector organisation are not subject to corporate tax and will instead fall under the regime of the tax on legal persons.

Tax Incentives and Deductions in Belgium

Belgium provides a range of tax incentives that will reduce the overall burden of corporate tax on businesses:

• An investment deduction is available on the acquisition of new tangible or intangible fixed assets that are used for professional activities in Belgium.
• Higher rates of deduction apply to investments in green technology, research and development, energy-saving equipment, digital tools, and carbon-free transport.
• A small or medium-sized enterprise will generally benefit from a deduction of 20.5% or 8% depending on the type of investment, and any unused deduction will be carried forward to a future tax period.
• A notional interest deduction is available on the adjusted equity of a company and this allows a notional interest cost to be deducted from taxable income.
• The measure will reduce the preference of businesses for debt financing and will encourage stronger equity positions which lower the effective corporate tax rate.
• A small or medium-sized enterprise will also benefit from an additional uplift of 0.5% on the applicable notional interest rate.

Corporate Tax Registration in Belgium

Companies established under Belgian law are not required to make a separate registration for corporate tax. When a business is created and registered in the Crossroads Bank for Enterprises (CBE), the Federal Public Service Finance automatically generates a corporate tax file based on the company details. Any updates to the company’s information in the CBE are also transferred automatically to the tax authorities .

Foreign companies with their principal establishment or place of management in Belgium must register directly with the competent tax office. In such cases, the tax file is not created automatically and businesses must ensure timely registration to remain compliant.

Filing Corporate Income Tax Returns in Belgium

All companies subject to corporate tax in Belgium must submit a corporate income tax return once every year after the end of their financial year . The return covers the company’s taxable profits for that financial period.

The return must be filed electronically through the Biztax platform. Paper filing is only allowed in exceptional situations where the company or its agent cannot access the required IT resources, and this must be justified in writing to the tax office.

In some cases a company may need to file more than one return in a year. This applies if the financial year is shortened or extended, or if the company is dissolved, merged, or divided.

Paying Corporate Income Tax in Belgium

Corporate income tax in Belgium must be paid after assessment, based on the amount indicated in the tax assessment notice issued by the Federal Public Service Finance .

Payment can be made in three ways:

• Online via MyMinfin
• Bank transfer
• Through a bailiff

Advance Corporate Tax Payments

• A company that is subject to corporate tax in Belgium will normally be required to make advance payments on its estimated tax liability during the financial year.
• An SME is exempt from making advance payments during its first three fiscal years if it meets the size criteria for employees, turnover, and balance sheet total.
• Advance payments must be made on set quarterly dates, such as April, July, October, and December for a company with a calendar year accounting period.
• If sufficient advance payments are not made, a tax increase will apply. For the assessment year 2026 this increase is set at 6.75%.
• When a company makes timely and adequate advance payments, the tax increase will be fully avoided.

Accounting and Record-Keeping Requirements in Belgium

A company that is subject to corporate tax in Belgium will be required to maintain proper accounts and records:

• An SME must keep double-entry accounts and can use an abbreviated reporting scheme.
• A large company must prepare and file its annual accounts under the full reporting scheme with the National Bank of Belgium.
• All accounting documents and supporting evidence that show the taxable income of the company must be kept for at least ten financial years.

Conclusion

A business will need to file a return on Biztax and pay the corporate tax on time. It will also need to make advance payments when required and keep accounting records for ten years while avoiding delays or neglect as this will lead to penalties.

A business in Belgium will also need to comply with e-invoicing starting on 1 January 2026. If you have queries or need help you can connect with us at sales@flick.network.

FAQS

What is the standard corporate tax rate in Belgium?

The standard corporate tax rate in Belgium is 25% on the net income of a company.

Who will need to pay corporate tax in Belgium?

A Belgian resident company will pay corporate tax on its worldwide profits. A foreign company that carries on a business activity in Belgium will pay corporate tax only on the profits sourced in Belgium.

How will a company file a corporate tax return in Belgium?

A company will file its corporate income tax return each year through the Biztax platform after the end of its financial year. Paper filing will only be accepted in exceptional cases where online filing is not possible.

What are advance tax payments in Belgium and why are they required?

A company in Belgium will need to make quarterly advance payments on its estimated tax liability. If a company does not pay enough in advance, a tax increase of 6.75% for assessment year 2026 will apply. An SME will be exempt from this obligation during its first three fiscal years.

How long will a company need to keep accounting records in Belgium?

All accounting records and supporting evidence of taxable income must be kept for at least ten financial years. These records will be reviewed if the tax authorities carry out an audit.