taxes in Belgium

taxes in Belgium

The Belgian tax system is based on progressive taxation, and each citizen must declare his or her income to determine his or her level of taxation. Here’s a detailed overview of the Belgian tax system:

Personal income tax (IPP)

  • Income tax is progressive, with brackets ranging from 25% to 50%.
  • Income is divided into several categories: salaries, replacement income (unemployment, pension), professional income and real estate income.

Tax deductions

  • Taxpayers can benefit from tax deductions for expenses such as family expenses, professional fees, insurance and pensions.
  • There are also reductions for donations to charitable organizations and for energy-efficiency expenditure in the home.

Value-added tax (VAT)

  • The standard VAT rate is 21%. Reduced rates of 6% and 12% apply to certain goods and services, such as food, medicines and transport.

Corporation tax

  • The corporate tax rate in Belgium is 25%, but reduced rates may apply for certain small businesses.

Local taxes

  • In addition to national taxes, local taxes are levied by communes and regions. These taxes may relate to property ownership, vehicle traffic or other services.

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