Belgium

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Country Knowledge

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!

General information

Languages :

  • Dutch
  • French
  • German
  • English

Population : 11,59 million

Currency: Euro

Current Exchange Rate to USD: 0.91783

Standard corporate income tax rate:

25 %

Main tax incentives:

Innovation deduction (software, patents)

Other incentives:

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)

Branch taxation:

25% on the Branch profit

Standard Interest withholding tax:

30 %

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:

15 %

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

Religious: No

Federal / national only?: No

State / provincial too?: Yes

EU member ?: YES

Other infos about governmental layers:

local government

Data privacy rules?:

Yes

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

The information provided on this website is intended for general informational purposes only and should not be construed as professional advice. While our members make every effort to ensure the accuracy and reliability of the information presented, we cannot guarantee its completeness, timeliness, or suitability for any particular purpose.

We strongly recommend that you seek professional advice from a qualified expert in the relevant field before making any decisions or taking any actions based on the information provided on this website. Your reliance on any information presented on this website is at your own risk.

Please note that the information on this website is subject to change without notice, and we assume no responsibility or liability for any errors or omissions in the content. By accessing and using this website, you agree to release us from any and all claims, liabilities, and damages arising from your use of the information provided herein.

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