Tax
Four progressive income tax brackets topping out at 50%, plus municipal surcharges
Personal income tax under the Income Tax Code 1992 is levied on four brackets rising to 50%, reached at a comparatively low income level, and municipalities add a surcharge on top of the federal liability. Companies pay 25%, with a reduced 20% rate on the first EUR 100,000 of profit for qualifying small companies. Standard VAT is 21%.
Key rules
- For income year 2025 the brackets are 25%, 40%, 45% and 50%, with the top rate applying above EUR 49,840, and a tax-free allowance of EUR 10,910.
- Municipal surcharges (aanvullende gemeentebelasting) are added to the federal tax and vary by commune.
- Corporate income tax is 25%, with 20% on the first EUR 100,000 of profit for small companies meeting the statutory conditions.
- Residents are taxed on worldwide income; non-residents on Belgian-source income only.
Governing law
- Income Tax Code 1992 (CIR 92 / WIB 92)Personal and corporate income tax
- VAT Code (3 July 1969)Standard rate 21%, with reduced rates of 12% and 6%
- Code of Recovery of Tax and Non-Tax Claims (13 April 2019)Collection and recovery procedure
Penalties and consequences
- Surcharges for late or non-filing, and interest on late payment
- Proportional fines on understated tax, increasing with repetition and intent
- Criminal penalties for tax fraud in the most serious cases
In practice
Because the 50% band starts at a relatively modest income, employer-provided benefits and the treatment of company cars matter disproportionately in Belgian tax planning. Returns are filed through MyMinfin, and an assessment notice (aanslagbiljet) follows; objections must be lodged with the regional director within the statutory time limit.