Belgium: Budget agreement reached, includes tax provisions

Belgium: Budget agreement reached, tax provisions

The Belgian government this week announced that it reached an agreement on the budget 2015-2016 and on the implementation of the “tax shift.” Among the measures announced are the following:


Related content

  • The employer social security contribution would be reduced from 33% (actual) to 25%.
  • The individual (personal) income taxes would be lowered for those with low and medium-sized wages.
  • There would be added incentives for investments made in R&D and innovation.

The budget agreement also would increase taxes with respect to the following:

  • The excise taxes on alcohol, tobacco and diesel (except professional diesel) would be progressively increased over future years.
  • The rate of withholding tax on movable income (interest, dividends) would increase from 25% to 27% (with no changes expected for the “classical” savings deposits).
  • The rate of value added tax (VAT) on electricity consumption by individuals would return to 21% (up from 6%) as from 1 September 2015.
  • A capital gains tax on quoted shares realized in the “short term” (defined to be at a maximum six months of ownership) would be introduced.

Read a July 2015 report prepared by the KPMG member firm in Belgium: Belgian Government reached an agreement on the budget 2015-2016 and on the ‘tax shift’

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.