Law containing various provisions

Group contribution (Intragroup transfer)

This amendment aims at rendering the Belgian corporate tax legislation compliant with EU law, and more specifically the judgement of the 2025 CJEU in the John Cockerill case.

The dividend received deduction can now be deducted by the recipient of a group contribution from the amount of the so-called ‘excess’ group contribution.

This change will enter into force as of tax year 2026.

Sicav-RDT / DBI-Beveks

Distinct taxation of capital gains on Sicav-RDT / DBI-Beveks

The tax applies to capital gains on Sicav-RDT/DBI-Beveks which are in principle exempt based on article 192 ITC.It concerns shares of (real estate) investment companies referred to in article 203, §1, al. 1, 2° ITC or article 203, §1, al. 1, 2°bis ITC when dividend income from these shares was deducted from profits from a previous taxable year based on articles 202 and 203 ITC.

An exception is that this is not applicable to private pricaf / privak and foreign EU companies assimilated thereto.

The applicable tax rate is 5%. This distinct taxation applies even if the company is in a tax loss position and can be combined with other forms of taxation.

New rules for credit of WHT on dividends from Sicav-RDT / DBI-Beveks

Belgian withholding tax (précompte mobilier / roerende voorheffing) on dividends distributed by a Sicav-RDT / DBI-Beveks (as defined above) can only be credited for Belgian corporate tax purposes by a Belgian corporate shareholder if the shareholder grants the minimum remuneration referred to in article 215, al. 3, 4° ITC to at least one of its directors.

This will enter into force in the tax year 2026, with non-opposability of changes to the year-end date after 3 February 2025 which are not driven by non-tax motives.

Investment deduction

A number of changes were made to the investment deduction regime.

The prohibition to combine the thematic deduction with regional grants or fundings has been abolished.

Limitations to the carry forward of excess investment deduction have also been abolished. This includes the general ceiling applicable to the effective use of investment deduction carried forward (article 72, al. 2 ITC and article 201, §1, al. 4 ITC) and the prohibition to carry forward the basic deduction (article 201, §1, al. 3 ITC).

Corrective provisions have been introduced to correct unintended consequences of the new legislation:

• The increased rate for digital investments is now only applicable for SMEs.

• Taxpayers opting for the application of the R&D tax credit are now only prohibited from using the technology deduction.

The thematic investment deduction has been increased from 30% to 40% for non-SMEs.

These changes will enter into force for fixed assets acquired or constituted as from 1 January 2025, except for the increase of the thematic deduction for non-SMEs, which is applicable as of the tax year 2027.

Special tax regime for inbound taxpayers and inbound researchers

The special tax regime for inbound taxpayers and inbound researchers (also referred to as the “expat regime”) is made more attractive with retroactive effect as from 1 January 2025, as follows:

• The “cost proper to the employer” allowance (a form of lump sum tax-free expense reimbursement) is increased from 30% to 35%;

• The maximum cap of EUR 90,000 on the cost proper to the employer allowance is abolished; and

• The minimum gross annual salary threshold to be eligible for the regime is reduced from EUR 75,000 to EUR 70,000.

The changes will apply to remuneration paid or attributed as from 1 January 2025. Applications for the expat regime for employees who commenced employment in Belgium during 2025 with a salary between EUR 70,000 and EUR 75,000 who would otherwise qualify for the regime may still be filed within three months after the 10th day after publication of the law in the official gazette.

Companies are advised to review the existing contractual terms for potentially affected employees, particularly in view of the current wave of special tax audits by the Belgian tax authorities.

Company cars

As from 1 January 2026, only zero-emission vehicles remain fully tax-deductible on acquisition via a new purchase, finance lease, or hire purchase agreement.

A deduction of up to 75% is available for plug-in hybrid vehicles (PHEVs) purchased, leased, or rented by 31 December 2027. For later acquisitions, a degressive deduction will apply:

• 65% for PHEVs purchased, leased, or rented in 2028;

• 57.5% for PHEVs purchased, leased, or rented in 2029; and

• 0% for PHEVs purchased, leased, or rented in 2030 and subsequent years.

A higher deduction rate applies to vehicles emitting less than 50 grams of carbon dioxide per kilometre.

Fossil fuel expenses (including compressed natural gas, diesel, and petrol) will no longer be tax deductible as from 1 January 2026 for all cars, including PHEVs purchased, leased, or rented by self-employed individuals trading as a sole proprietorship (“éénmanszaak”).

Meal vouchers

As from 1 January 2026, the maximum employer/company contribution for meal vouchers granted to employees/directors is increased from EUR 6.91 to EUR 8.91.

The tax deductibility of meal vouchers for the employer/company is currently limited to EUR 2. As from 1 January 2026, if the maximum contribution of EUR 8.91 is reached, the employer/company may deduct EUR 4.

Flexi-jobs

The annual tax exemption for flexi-job earnings will be increased from EUR 12,000 to EUR 18,000 and will be indexed annually going forward.

Real estate taxation

As from 1 January 2026, the following will be abolished:

• Ordinary interest deduction for loans on properties other than the main residence, including ongoing debts;

• Increased interest deduction on properties other than the main residence, including ongoing debts;

• Federal housing bonus;

• Federal building savings;

• Additional reduction for joint assessment for mortgage loan contracts concluded before 1 January 1989;

• Green loan interest reduction, although the 1.5% interest subsidy will continue to apply; and

• Energy-efficient housing reduction.

Only the tax reduction for long-term savings will be maintained for capital repayments and mortgage protection insurance premiums. 

Tax return simplification

The following measures have been introduced to simplify individual income tax returns:

• Abolition of the tax benefit for contributions made to a private PC plan (broadly a tax-efficient means for employers to provide computer equipment and/or internet access to employees for private use) as from 1 October 2025 (i.e., for contributions made after 30 September 2025), as well as “grandfathering rules” for old private PC plans;

• Abolition of the additional allowance for long-distance travel as from assessment year 2026;

• Abolition of tax reductions or exemptions for the following as from assessment year 2027:
  • Capital losses incurred during the complete distribution of a private privak’s capital;
  • Expenses to acquire an electric vehicle;
  • Expenses for a development fund;
  • Expenses to buy or install a charging station—the reduction is only granted for expenses incurred until 31 August 2024;
  • Wages of a domestic servant;
  • Expenses incurred in an adoption procedure;
  • Legal assistance insurance premiums;
  • Capital gains on company vehicles—the exemption will be limited to gains realised by 31 August 2025;
  • For social passive, no new exemptions will be granted for wages after 31 August 2025 for employees meeting the five-year seniority requirement and there will be a gradual phasing out of existing exemptions to mitigate retroactive effects on acquired rights; and
  • For self-employed individuals, exemption for additional employees and internships; and
• A decrease in the tax reduction for donations to charity from 45% to 30% of the donation as from assessment year 2026.

Alimony

With retroactive effect as from 1 January 2025, the deductibility of alimony paid or awarded will be gradually reduced as follows:

• 70% for payments made in 2025;

• 60% for payments made in 2026; and

• 50% for payments made as from 1 January 2027.

Additionally, as from 1 January 2025, if the recipient of the alimony is not a resident of the European Economic Area or Switzerland, the payer will not be entitled to a deduction for the amounts paid and the nonresident recipient will no longer be subject to Belgian taxation. As a consequence, no withholding tax should be applied to the payments.

Net disposable income of dependents

With respect to the net disposable income taken into account for an individual to be considered as a dependent for tax purposes, the following changes have been introduced as from assessment year 2026:

• An increase in the threshold for all children to EUR 12,000 for assessment year 2026 (to be indexed annually) to promote equal treatment of parents regardless of their living arrangements;

• To prevent the dual benefit of receiving a living wage and being considered a dependent, individuals receiving a living wage or the equivalent will no longer be considered as a dependent for income tax purposes; and

• Doctoral (PhD) scholarships will no longer be excluded in the assessment of whether a PhD researcher is a dependent.

Wijninckx contribution rate for supplementary pensions

The special Wijninckx contribution rate on occupational pensions for salaried workers will increase from 3% to 12.5%. The legislation will be effective as from 1 July 2025 and apply to contributions on or after 1 January 2026.

Replacement of the current pension bonus on the legal pension for self-employed workers, salaried workers, and civil servants 

Various measures will be introduced to gradually abolish the pension bonus to simplify pension calculation rules and control related costs. The key points of the reform are:

• Gradual abolition of the current pension bonus system for the self-employed, salaried workers, and civil servants through 31 December 2025;

• As a result of the abolition, the eligible service period is reduced to the period 1 July 2024 through 31 December 2025;

• The total eligible days are also reduced accordingly from 936 to 468 when the bonus accrual occurs across different employment statuses;

• The bonus may only be paid as a lump sum pension, no longer as an annuity; and

• Full abolition of the pension bonus as from 1 January 2026.

Solidarity contribution

The key changes to the solidarity contribution are as follows:

• Automatic withholding of the 2% contribution on pension payments due as from 1 January 2026.

• From 1 July 2027 onwards, Belgian pension payers must withhold an additional levy on the amount of the pension exceeding the aggregate threshold for occupational pensions of EUR 150,000. The additional levy will be calculated by Sigedis as 2% multiplied by the excess as a proportion of EUR 150,000.

• If the solidarity contribution withheld is too high, the overpaid amount will be reimbursed to the retiree.

Amendments to assessment and investigation periods (Income Tax)

The income tax statute of limitation for investigation and assessment of complex and semi-complex tax returns has been set to four years. As a result of aligning the treatment of complex and semi-complex tax returns, the category of semi-complex returns has been eliminated.

Additionally, the definition of a complex tax return has been amended in relation to the Controlled Foreign Corporation (CFC) regime: a corporate tax return is now considered complex if it includes a non-distributed profit as defined by article 185/2 of the Income Tax Code (ITC).

In cases of tax b and retroactive effect starting from the tax year 2023.

Amendments to assessment and investigation periods (VAT)

Regarding Value Added Tax (VAT), a notification obligation has been introduced to apply an extended prescription period of seven years. The retention period for VAT-related documents has similarly been extended to seven years. These amendments apply immediately to VAT that has become due from 1 January 2023 onwards.

Central contact point (PCC/CAP)

Tax authorities are authorized to request data held by the Central Contact Point (PCC/CAP) of the National Bank regarding securities accounts to audit the application of the tax on securities accounts.

The use of data held by the CCP for purposes of data mining and data matching is now governed by the overall framework introduced by the law.