Belgian Income Tax: Rates, Deductions, and Exemptions

Income Tax System in Belgium

In Belgium, an individual or a company will need to pay tax on the income or profit earned. So it is important to understand the basics of the income tax system. This guide will help you learn about the types of tax, the rate of tax, the use of deductions and allowances, and the steps for filing and payment.

Income Tax System in Belgium

The Belgium income tax system collects tax from individuals and companies based on income or profits to fund public services and applies higher rates on higher earnings to support fairness and fiscal balance.

There are two main types of income tax in Belgium

• Personal Income Tax applies to individuals.
• Corporate Income Tax applies to companies.

Personal Income Tax in Belgium

Personal income tax in Belgium is a tax on the income of an individual and it applies to various types of personal earnings. The tax system is progressive and the rates will increase based on the amount of income earned. The rates start at 25 percent and go up to 50 percent.

Types of Income Considered as Personal Income

Personal income includes various types of earnings such as:

• Income from employment or self-employment
• Pension payments from the state or a private fund
• Rental income from the letting of property
• Professional fees and freelance income
• Certain allowances and investment-related income

Persons Liable to Pay Personal Income Tax

A resident of Belgium

A resident will pay tax on the worldwide income, including income earned in Belgium and in other countries.

A non-resident of Belgium

A non-resident will pay tax only on the income earned from Belgian sources such as:

• Employment in Belgium
• Rental income from property in Belgium
• Income from a professional activity carried out in Belgium

Belgium Personal Income Tax Rates (2024 Income Year)

Personal Tax Allowance in Belgium

The personal tax allowance in Belgium is a part of the income that will not be taxed. Every individual will receive this allowance as a basic reduction on the taxable income.

• For the income year 2024, the allowance is €10,570
• For the income year 2025, the allowance will increase to €10,910

The amount of the allowance will increase if a person has dependent children, is a single parent, or supports a disabled family member.

If the income stays below the allowance, the person will not pay personal income tax. If the income is higher, only the amount above the allowance will be taxed.

Personal Income Tax Deductions and Allowances in Belgium

How to File and Pay Personal Income Tax in Belgium

Every individual liable for personal income tax in Belgium must file an annual tax return for the previous income year. The return calculates the final tax payable after considering withheld taxes, deductions, and exemptions.

Deadlines for Filing (Assessment Year 2025 / Income Year 2024)

• 30 June 2025: If filing by post (paper return or adjustment to simplified proposal).
• 15 July 2025: If filing online via MyMinfin.
• 16 October 2025: If you declare specific incomes like self-employment or foreign professional income.

• Filing Methods

• MyMinfin (Tax-on-web) is the preferred platform. 

• Paper forms are available in limited cases.

  After Submission

• You can track the status of your return in MyMinfin.

• Between August 2025 and June 2026, the administration will send a tax assessment notice (avertissement-extrait de rôle). This shows your final tax calculation and indicates whether you owe tax or are due a refund.

  Payment

• Any tax due must be paid by the date on the tax notice.
• Payment details and structured references will be provided in the notice.

• If taxes have already been withheld (e.g., through payroll), the amount due may be adjusted accordingly.

  Delays and Penalties

• You may request an extension only in exceptional cases (e.g., serious illness or fire), and the request must be justified and submitted before the deadline.
• Late or missing declarations may result in fines or automatic taxation based on estimated income.

• Late payments will trigger interest charges.

• Additional Notes

• You can authorize a trusted person or accountant to file your return through a secure digital mandate.
• If needed, you may revise a filed return online or by contacting the tax office.
• A free simulation tool (Tax-Calc) is available to estimate your tax anonymously.

Corporate Income Tax in Belgium

• Corporate Income Tax in Belgium is a tax on the profits of a legal entity.
• It applies to:
• Resident companies with a registered office, main establishment, or management in Belgium. They are taxed on worldwide income.
• Non-resident companies that earn income from Belgian sources like local branches, real estate, or domestic operations.

Corporate Income Tax Rate – 2025

• Standard rate: 25% on the taxable profits of a company.
• Reduced rate for small companies: 20% on the first €100,000 of taxable income.
   To qualify:
  • The company must meet the definition of a small company under Belgian law
  • It must not be controlled by another company
  • It must pay at least €45,000 to one director, or a salary equal to the company’s taxable income if lower.

Corporate Tax Deductions in Belgium 

Filing and Payment of Corporate Income Tax in Belgium

Every company subject to Corporate Income Tax (CIT) in Belgium must file an annual return using the official form 275.1. This declaration must be submitted electronically through the Biztax platform.

Filing Process

• Platform: All CIT returns must be filed via Biztax.  
• Filing Deadline: The return must be submitted by the end of the seventh month following the financial year-end and no later than the filing date set in the tax calendar.
• Documents: Along with the return, companies must include supporting documents such as the annual accounts and the tax computation.

Payment Process

• Assessment Notice: Once the return is reviewed, a tax assessment notice will be issued. This document specifies the tax due or any refund.
• Payment Deadline: The tax must be paid within two months of the issue date of the assessment notice.
• Advance Payments: Companies are encouraged to make quarterly advance payments to avoid a tax increase. Insufficient prepayments may lead to a 6.75% tax surcharge (as of 2025).

• Payment Method: Payment must be made to the bank account of the Belgian tax administration, using the structured communication provided in the notice.

  Late Filing or Payment

Failure to file or pay on time may result in penalties, interest, or estimated assessments based on the administration’s data.

Conclusion

In Belgium, both individuals and companies need to pay tax and the country also has various types of taxes so it is important to understand all obligations and follow the tax regulations. You must file and pay tax on time otherwise you may face penalties or additional payments.

FAQ

1.Who needs to pay income tax in Belgium?

Every individual or company that earns income in Belgium will need to pay tax. 

2. Do I need to pay tax if I live in Belgium?

Yes, if you earn income, you must pay tax.

3.What are the main types of tax in Belgium?

Personal Income Tax and Corporate Income Tax.

4.How can I file personal tax in Belgium?

You can file online on MyMinfin or use paper in some cases.

What if I miss the tax deadline?

You may get a fine, pay interest, or be taxed based on an estimate.