Elections 2024 - Federal
Contents of the 2025 Government Agreement – Tax Measures (Summary)
(status as of February 11, 2025)
You can find the government agreement here (click to obtain the PDF, new version of Feb.11).
This agreement, while detailed, is not yet a draft legal text. We will send you our more detailed comments in our information letters, and we will answer your questions regarding your specific situation.
Below is a synthesis focusing on the main tax-related points (excluding employment incentive measures):
1. Effective Date – When will these measures apply?
The government agreement sets out, as a general principle, that the measures will enter into force in 2026.
However, this principle is stated in the chapter on employment taxation. Although the title “General Principle” suggests it applies to all tax measures, there may be clarifications later that could alter this principle for some of the measures mentioned below.
Excerpt from the government agreement on this point (p.33) - unofficial translation:
“Measures that will enter into force during this legislature will all be implemented starting from 2026.”
2. Personal Income Tax – Capital gains on financial assets for individuals: 10% tax
Current regime
Capital gains on securities realized in the context of normal management of private wealth can be exempt from tax.
Modifications
A “solidarity contribution” of 10% on capital gains realized on financial assets (including cryptocurrencies).
Existing capital gains when the tax enters into force will be exempt.
Capital losses realized during the year can be deducted.
An annual exemption of EUR 10,000.
A specific regime in case of a shareholding of more than 20% (the French text mentions 10%, while the Dutch text refers to 20%. It appears there is a typographical error in the French version ; the French text also refers to different slices of income and rates as compared to the Dutch version) in the company, leading to a reduced tax on the first EUR 10 million of capital gains.
Entry into force: 2026 (based on the general principle mentioned regarding taxation; subject to confirmation).
Excerpt from the government agreement on this point (p.13–14) - unofficial translation:
“A general 10% tax will be introduced on capital gains on financial assets, including crypto-assets, without retroactive effect and with an exemption for historical capital gains from the date the tax enters into force. Historical capital gains are therefore exempt.
It is planned to allow the deduction of capital losses (in this category of income) in the year, without the possibility of carryforward.
In the declaration, a basic exemption of 10,000 euros is provided so that small investors are not subject to additional taxation. This basic exemption will be indexed annually.
In the event of a significant holding of at least 20%, an amount of 1 million euros will always be exempt.
The taxable base between 1 million euros and 2.5 million euros will be taxed at 1.25%.
The taxable base between 2.5 million euros and 5 million euros will be taxed at 2.25%.
The taxable base between 5 million euros and 10 million euros will be taxed at 5%.
As from 10 millions euros, the gain will be taxed at 10%”
3. Corporate Tax – Parent-Subsidiary Regime: Threshold increased from EUR 2.5 Million to EUR 4 Million, large companies only; SICAV-RDT/DBI-BEVEK: 5% tax upon redemption
Current regime
The participation exemption regime (exemption of capital gains on shares and dividends) requires certain conditions to be met. Among others, there is a quantitative requirement (except for certain exceptions, such as investment companies): the shares must either represent a 10% participation in the subsidiary or reach an investment value of at least EUR 2.5 million.
Modifications
The EUR 2.5 million threshold will be increased to EUR 4 million for large companies, i.e., those that, for at least two of the last three closed taxable periods, have an average staff of at least 250 full-time equivalents or whose:
- turnover, excluding VAT, exceeds EUR 50 million; and
- total balance sheet exceeds EUR 43 million.
The SICAV RDT regime is maintained but will result in a capital gain taxed at 5% upon redemption.
Excerpt from the government agreement on this point (p.13) - unofficial translation:
"The parent-subsidiary deduction is reformed to become an exemption rather than a deduction (with an increase in the initial reserve situation).
The 10% participation condition remains unchanged, but the EUR 2.5 million threshold is strengthened, rising to EUR 4 million. This restriction does not apply to small and medium-sized enterprises (as defined in Article 2, §1, 4°/1 CIR), but only to large companies and transactions between them.
Concerning 'SICAV RDT,' a 5% tax will be applied on the capital gain upon redemption. In addition, the possibility of offsetting the withholding tax with corporate income tax will only be possible insofar as the receiving company pays its executive manager a minimum remuneration in the year of receiving the payment."
4. Corporate Tax – Intragroup Transfers (Tax consolidation)
Current regime
The intra-group transfer regime allows a group of companies to operate a form of fiscal consolidation. An intra-group transfer can only be carried out between companies with a direct participation of at least 90% (or between sister companies when the parent company holds at least 90% of the capital of both subsidiaries), over an uninterrupted period of at least 5 years.
Modifications
- Both direct and indirect participations would now be covered, and newly acquired or incorporated companies would no longer be excluded from the regime (i.e., it appears the minimum 5-year holding period would be adapted).
- The regime would also be made more flexible and simpler on an administrative level.
- Finally, the RDT/DBI deduction would apply to income from an intra-group transfer.
Excerpt from the government agreement on this point (p.34) - unofficial translation
" The intra-group transfer regime will also become more attractive, more flexible, and simpler from an administrative perspective by allowing both direct and indirect participations, by no longer excluding new companies, and by making the RDT deduction of the group contribution possible. "
5. Personal Income Tax /Corporate Tax – Exit Tax in the event of a company’s emigration
Current regime
A company’s emigration is treated as a liquidation of the company in Belgium: the latent result is deemed realized at the time of the company’s transfer outside Belgium. However, the operation usually does not generate tax for the shareholder, who retains their shares without receiving any cash flow due to the company’s transfer.
Modification
Emigration of a company outside Belgium will imply the taxation of the Belgian liquidation surplus at the shareholder level (dividend taxable at 30%, possibly reduced or exempt depending on the status of the shareholder, whether a company or a non-resident).
Excerpt from the government agreement on this point (p.13) - unofficial translation
" The emigration of a legal person will be treated for tax purposes as a deemed liquidation of the legal person, with the application of withholding tax. "
6. Annual Tax on Securities Accounts: maintained at 0.15%; Anti-Avoidance
Modification
- No rate increase.
- Strengthening of anti-avoidance measures.
Excerpt from the government agreement on this point (p.13) - unofficial translation
" The government will examine how, in accordance with the recommendations of the Court of Audit, to combat evasion of the annual tax on securities accounts."
7. Personal income tax - Carried interest
Modification
Introduction of taxation at 30% for new carried interest structures.
Excerpt from the government agreement on this point (p.14) - unofficial translation
" The government will put in place a specific and competitive regime regarding carried interest compared to existing schemes in neighboring countries, in order to stimulate fund activities in Belgium. This regime provides a maximum tax rate of 30% for movable income and will have no impact on existing plans. "
8. Personal income tax - VVPRbis
Modification
The so-called "VVPRbis" regime will be modified only with regard to the 20% rate applicable to dividends paid in the second financial year following the issuance of VVPRbis shares: this rate will be removed and replaced with the ordinary 30% rate (the 15% rate remains applicable starting from the third year).
Excerpt from the government agreement on this point (p.14) - unofficial translation
"The VVPRbis regime and the liquidation reserve will be harmonized as much as possible. With regard to the liquidation reserve, the waiting period will be reduced from 5 years to 3 years. The withholding tax rate of 5% will be increased to 6.5%. In this way, the effective tax rate will rise from 13.64% to 15%, i.e., the same rate as under the VVPRbis regime. Early distributions made within those 3 years will be subject to the standard 30% withholding tax."
9. Investments taxation
Modifications
- TOB (Tax on Stock Exchange Transactions): modernization and simplification.
- Private Privak/Pricaf : simplification of rules.
- Venture capital: promotion.
Excerpt from the government agreement on this point (p.37) - unofficial translation
“• The tax on stock market transactions will be modernized and simplified by targeted actions to address certain known issues and improve the competitive conditions between the investment vehicles, investment companies, and investment funds concerned. The provision relating to the fund of funds will also be rewritten and clarified. We will also reduce accounting and administrative obligations and avoid excessive regulation of IPOs.
• Belgium will participate in the European industrial and financial strategy to strengthen the European Capital Markets Union and will take measures to promote venture capital.
• To strengthen risk capital, the regulatory framework for private pricafs will be further relaxed within a budget-neutral framework. The problems related to the existing regulatory framework, such as the limited duration, the number of shareholders, the introduction deadline, and authorized investments, will be removed.
• The problems related to equity investments for certain types of investors (pension funds, insurers, etc.) will be reduced to allow them to invest more in the real economy.”
10. Personal Income Tax – Deductibility of loan interest for multi-property owners
Modification
Interest on loans for the acquisition of properties other than the principal residence will no longer be deductible.
Excerpt from the government agreement on this point (p.14) - unofficial translation
“The federal deduction of interest for housing other than the main residence is completely eliminated.”
11. Personal Income Tax – Copyright Regime expanded
Excerpt from the government agreement on this point (p.48) - unofficial translation
“The tax regime for copyrights will be expanded to end the existing discrimination between digital professions (which cannot currently benefit from this regime according to the tax authorities) and other professions. Works protected under Book XI, Title 6, of the Code of Economic Law will be eligible for the copyright tax regime.”
12. Personal Income Tax – More attractive regime for inpatriates
Modification
Increase in the exempt portion to 35%, reduction in the minimum remuneration, and removal of the EUR 90k cap.
Excerpt from the government agreement on this point (p.34) - unofficial translation
“increasing the tax-exempt portion from 30% to 35%, removing the ceiling of EUR 90,000, and reducing the minimum gross remuneration from EUR 75,000 to EUR 70,000.”
13. Improving legal certainty
Excerpt from the government agreement on this point (p.44–45 – selection) - unofficial translation
“The government undertakes not to introduce retroactive tax rules. It will also take measures to achieve more thematic tax legislation, aimed at strengthening legal certainty and clarity, and ensuring the strict application of tax legislation.
The government will set up a commission tasked with rewriting and simplifying the Income Tax Code (while preserving current rights) in order to make the current rules simpler and more transparent.
The tax mediation service will be transformed into tax arbitration. Access to this tax arbitration will only be possible once the administrative procedure is complete.
Legal certainty is essential for investors and companies. We will preserve the decision-making autonomy of the Service for Advance Decisions (the ‘ruling service’).”
14. Elimination of tax breaks
Details: see p.39 and 40 of the agreement.
15. Reform of Assessment and Limitation Periods
The limitation period, which could be up to 10 years, will be reduced (the government recognizes that it causes too much legal uncertainty).
Excerpt from the government agreement on this point (p.47-48) - unofficial translation
“The time limits for investigation and assessment for tax matters are set at 3 years (4 years for complex and semi-complex returns) from January 1 of the tax year, except in cases of fraud (or suspicion of fraud).
In cases of fraud, the time limit is set at 7 years from January 1 of the tax year.”