Accountancy in Belgium

>> Withholding Taxes in Belgium

Depending on double tax treaties, the withholding taxes mentioned below can  be reduced or exempted.

Interest

Interest from Belgium companies is paid after deduction of a withholding tax of 27% standard rate (reduction possible under certain conditions).

Savings is the exception:

  • First interest tranche of 1880 Euro/ person (in 2016): exempt from withholding tax (natural persons only)
  • Above 1880 euro: bank keeps a withholding tax of 15%

Based on the EU Savings and Royalties

Directive, which has been converted into Belgian Tax Law, interest payments to qualifying related parties within the EU  are exempted from withholding taxes.

Royalties

All royalties and copyrights are paid under deduction of tax at 27%.

Based on the EU Savings and Royalties

Directive, which has been converted into Belgian Tax Law, royalty payments to qualifying related parties within the EU  are exempted from withholding taxes.

Dividends

Dividends from Belgian companies are paid after deduction of a withholding tax of 27%.

According the EU parent-subsidiary directive, no withholding tax on dividends is due if:

  • at the time the dividends are distributed, the parent company holds a minimum participation of 10% in the capital of the subsidiary;
  • this participation was or will be held uninterruptedly for a minimum period of 1 year; (to be extended to 2 years).
  • both the parent company and the subsidiary are companies with legal form explicitly described in the EU parent subsidiary directive.

Under these conditions, no withholding tax is due if the parent company is established in a country outside the EU either, as long as Belgium has a double tax treaty and exchanges information with the country  of the parent company.


Latest version updated 20th December 2017

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