Pre-draft bill featuring various personal income tax measures

Pre-draft bill featuring various personal income tax measuresOn 12 December 2025, the Council of Ministers approved a preliminary draft bill featuring various Personal Income Tax measures.

The preliminary draft brings together a number of measures from the federal coalition agreement, in order to make work more financially rewarding. It is further supplemented by a number of measures that simplify existing tax arrangements or remove uncertainties.

The measures relate to:

• A gradual increase in the tax-free allowance

• A reform of the supplements to the tax-free allowance, in favour of the supplement for the first dependent child

• The subsistence income (leefloon | revenu d’intégration sociale) will be included in the tax return, so that all income is taken into account more accurately

• The benefit of the marriage quotient for non-pensioners will be halved by 2029; for pensioners, this will be phased out gradually over a period of 20 years

• The introduction of a levy of 33% for pensioners who continue to work after retirement

• The introduction of the so-called de minimis scheme for Article 90, first paragraph, 1°, of the Income Tax Code (ITC), amounting to EUR 2,000 for occasional income

• The introduction of an entrepreneurial deduction for self-employed persons in their main or secondary occupation

• The abolition of the tax increase for insufficient advance payments for self-employed persons without companies

• The copyright tax regime will be extended to digital professions

• A reduction of the special social security contribution, making it “single-proof.” For a single person, this means up to EUR 350 extra net per year

• An increase in the work bonus, primarily benefiting the lowest wages, already as from 2026

• Other technical amendments

The draft will soon be introduced in the Chamber of Representatives.