Special Tax Issues for Businesses in Belgium

Details of specific tax issues that relate to companies operating in Belgium including information on social security contributions......

Capital duty

In principle, the contribution of real estate to a company is exempt from capital duty (kapitaalsbelasting/droit d'apport). However, where it relates to the contribution by a private person of "residential property" located in Belgium, capital duty is charged at a rate of 12.5 percent (10 percent in the Flemish region).

Registration duty on mixed contributions

A contribution of real estate (mortgaged or not), whereby the company takes up part of a contributor's debt, is called a mixed contribution. This type of contribution is partially subject to a registration duty (registratierechten/droits d'enregistrement) of 12.5 percent. The mixed contribution rule does not apply where the contribution relates to a branch of activity or is a whole asset contribution. In these cases, the contribution is fully exempt from registration duty.

Special levy on undeclared commission (geheime commissies belasting/cotisation spéciale sur commissions secrètes)

A special levy of 309 percent is payable on charges not adequately justified by salary slips or by other documents (commission, undeclared remuneration and concealed profits that are not part of the company's assets). However, the company may deduct this special contribution as a business expense.

Lump Sum Social Security Contribution

All companies subject to Belgian corporation tax or tax on non-residents must pay a lump sum social security contribution each year. There is a ceiling on the contributions of €852.50. This contribution is tax-deductible.

To make these payments, the company must register with a social security contributions fund. Newly formed companies may, under certain conditions, be exempt from payment of this contribution. The social security contributions funds can advise on eligibility for such an exemption.

Further Information

 

Disclaimer: Tax law is complex and every effort has been made to offer information that is current, correct and clearly expressed. The information in this summary is intended to be no more than a general overview of the position and certain details have been deliberately omitted. The contents of this page should not be taken as an authoritative statement of Belgian tax law and practice. Neither the author nor the publisher are responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. This text is not intended to render legal, accounting or tax advice. Readers are encouraged to seek professional advice concerning specific matters before making any decision.

Prepared using information supplied by ING Bank SA/NV www.ing.be