Our local member provided the following preliminary information about doing business in this country.
Please contact the firm for more information and obtain professional advice in each country concerned.
Our local member will be happy to help you proceed with your business!
Population : 11,59 million
Current Exchange Rate to USD: 0.91783
Standard corporate income tax rate:
Main tax incentives:
Innovation deduction (software, patents)
Grants on payroll cost of R&D and scientific staff - grants on R&D development costs
Standard dividend withholding tax rates:
30% (SMEs 15% - conditional)
25% on the Branch profit
Standard Interest withholding tax:
Interest expense deduction rules:
The financing cost surplus is only deductible to the tune of EUR 3 million, or 30% of the fiscal EBITDA. The financing cost surplus is the positive difference between: The total of interest costs (and economically similar costs) and the total of interest income (and economically similar income).
Some costs and revenues are excluded from the calculation. Linked companies must divide the minimum threshold of EUR 3 milion over all the companies of the group. There are also rules regarding market conformity of interest and interest payments to foreign companies subject to a favourable tax regime.
Standard royalty withholding tax rate:
Laws and government
Common law: No - common law comes into play only when the law does not provide for the case at hand. Belgian law does not recognise the common law concept of precedent. Decisions by higher courts do not, therefore, form a part of the law to which judges are subject. However, in practice, decisions of higher courts are regularly followed by lower courts
Civil law: Yes
Federal / national only?: No
State / provincial too?: Yes
EU member ?: YES
Other infos about governmental layers:
Data privacy rules?:
Data security rules?:
is included in privacy rules
Standards & Tax treaties
Number of tax treaties: 95
OECD MLI treaty signatory?: YES
Type of tax: VAT
Taxes on foreign products?: Import duties on certain goods from certain countries outside the EU and excise duties on alcohol, tobacco and energy products on imports
Taxes on foreign services?: That depends on the double taxation treaties, but effective services (excluding royalties) are not taxed unless the service is provided in Belgium by a permanent establishment of the foreign company.
Typical time and cost to incorporate a local private company: Time : non complex company : 3 weeks (this time is mainly needed to open a new bank account for a new company - (formalities anti-money laundering legislation) costs (including notary fees) : +/- 3.000 EUR
Typical time and cost to register a branch of a foreign company: If the branch can be represented by a Belgian resident : depends on the region (from 2 weeks up to …), costs : +/- 1,500 EUR
Typical business/tax/other issues in the country:
Complex labour and social legislation
Frequent changes to tax legislation
High tax rates and employer charges on salaries
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