Belgium: Tax

Since January 1, 2026, software has once again fallen under the Belgian tax regime for copyright, allowing compensation for software copyright transfers or licenses to be taxed at a favorable 15% rate under certain conditions. Companies interested in applying this regime must carefully document qualifying works, creative time spent, and ensure proper contractual arrangements, though social security contributions remain applicable despite the fiscal advantage.

The Belgian Constitutional Court has ruled on the temporal scope of a new tax regime that presumes good faith for first-time infringements, determining whether taxpayers involved in disputes over assessments issued before the law's effective date can benefit from more lenient treatment. The decision addresses three key challenges: the temporal limitation of the new rules, the exclusion of good-faith presumption for ex officio assessments, and the absence of an equivalent regime for VAT.

Employees working across borders often continue their existing pension schemes during temporary foreign employment, but this seemingly straightforward practice raises critical tax considerations that are frequently overlooked. When foreign pension contributions fail to meet specific exemption criteria under Belgian tax law, they may be treated as taxable income, potentially leading to economic double taxation at the payment stage. Recent guidance from Dutch tax authorities on their "balance scheme" mechanis

A Belgian Constitutional Court has referred critical questions to the Court of Justice of the European Union regarding the validity of the Undertaxed Profits Rule (UTPR) under the EU Pillar Two Directive.

Since January 1, 2026, software has once again fallen under the Belgian tax regime for copyright, allowing compensation for software copyright transfers or licenses to be taxed at a favorable 15% rate under certain conditions. Companies interested in applying this regime must carefully document qualifying works, creative time spent, and ensure proper contractual arrangements, though social security contributions remain applicable despite the fiscal advantage.

Belgium's tax administration has issued a crucial circular clarifying the application of the new capital gains tax on financial assets, addressing key uncertainties around realization timing, earn-out structures, partnership vehicles, and historical exemptions. The guidance provides essential insights for taxpayers navigating payment modalities, matrimonial property regimes, and the complex interaction between the tax and existing corporate structures.

Debt is not separately defined for Belgian tax purposes, hence in principle the civil law definition prevails.

The new edition of the EU Tax Alert is available. With this publication we would like to keep you informed about the latest developments on EU tax law. We have summarised the highlights of this edition below.

Depuis le 1er juillet 2025, un nouveau régime de TVA s'applique aux opérations de démolition et de reconstruction de logements en Belgique.

The Belgian Constitutional Court has ruled on the temporal scope of a new tax regime that presumes good faith for first-time infringements, determining whether taxpayers involved in disputes over assessments issued before the law's effective date can benefit from more lenient treatment. The decision addresses three key challenges: the temporal limitation of the new rules, the exclusion of good-faith presumption for ex officio assessments, and the absence of an equivalent regime for VAT.

The European Commission's proposal for an EU Inc. promises faster, digital incorporation and more harmonised corporate structures across Member States. But can this new framework genuinely reduce legal fragmentation and strengthen Europe's competitive position, or does it simply add another layer to an already complex corporate landscape?

The Belgian federal government has introduced a new 10% capital gains tax that applies retroactively to gains realized from January 1, 2026. This tax change directly impacts funds registered for marketing in Belgium, requiring immediate updates to their Belgian country supplements to ensure compliance with the new regulations.