Pre-draft bill featuring various personal income tax measures

On 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 most important measures relate to:

Increase attractiveness of work

• The copyright tax regime will be extended to digital professions as of 2026, more in particular related to the development of computer programs for external use.

• A gradual increase of the tax-free allowance over the next 4 years, starting in 2026. The net income increase resulting thereof will be neutralized for non-working individuals.

• As from 2026, the tax reduction for unemployment income will be reduced, with a full abolishment as of 2029. The tax reduction for the highest pension income will also be reduced as of 2026.

• A reform of the supplements to the tax-free allowance over the next 4 years, in favour of the supplement for the first dependent child.

• 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.

• A reduction of the special social security contribution, making it “single-proof.” This will a.o. be achieved by a 50% reduction of the maximum amount and reduction of the percentage on the first bracket.

• From 2026, the number of voluntary overtime hours will increase to 360 hours, of which 240 hours will be exempt if a.o. no overtime allowance is paid.

• The number of overtime hours with overtime allowance that benefits from a favorable tax regime will be permanently increased to 180 hours from 2026. In addition, the increases for specific sectors such as the construction sector, the hotel industry, road works and railway works are maintained and will be clarified.
• An increase in the work bonus, primarily benefiting the lowest wages as from 2026.

• The subsistence income (leefloon | revenu d’intégration sociale) will need to be reported as taxable income in the tax return with its specific tax reduction regime for replacement income.

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

Measures related to self-employed workers

• As of tax year 2027, the minimum director's remuneration – as one of the conditions to benefit from the reduced corporate income tax rate – will increase from EUR 45,000 to EUR 50,000 and will be indexed annually.

• As of income year 2027, the introduction of an entrepreneurial deduction of 10% for self-employed persons in their main or secondary occupation (maximum amounts: 650 EUR, to be increased to 900 EUR as of 2029).

• As of tax year 2027, the tax increase for insufficient advance payments for self-employed individuals will be abolished and an additional period between 21 December and 20 February to make prepayments will be introduced.

Miscellaneous measures

• As of tax year 2027, the total taxable remuneration of directors and employees cannot consist for more than 20% of lump-sum benefits in kind (to be calculated collective for both groups separately). If this threshold is exceeded, the imposed sanction for directors will be the loss of the reduced corporate income tax rate and for employees, the payment by the employer of a non-deductible tax of 7.5% on the excess part.

• The minimum age for young sportsmen to benefit from 16,5% on the first income bracket will be decreased to 15 years as from 2026.

• The introduction of a so-called de minimis rule (EUR 2,000) for income realized within normal management of one’s private assets under article 90, first paragraph, 1°, of the Income Tax Code.

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