Who qualifies for the Belgian SME reduced corporate tax rate?

## Who qualifies for the SME reduced rate in Belgium?

The 20% rate on the first €100,000 of taxable profit is not automatic. A company must meet all of the conditions at once.

## The conditions

• **Small company:** the company must meet the definition of a small company under the Companies and Associations Code.
• **Director remuneration:** at least one director must receive minimum gross annual remuneration. From tax year 2026 that minimum is €50,000. For earlier years it was €45,000.
• **Benefits in kind:** they cannot exceed 20% of that director's total remuneration package.
• **Other conditions:** further shareholding and distribution conditions apply under articles 215 and following of the Income Tax Code 1992.

## What happens if a condition is missed

The company is taxed at the standard 25% rate on all of its profit, not only on the part above €100,000. The maximum saving from the reduced rate is €5,000 a year, so the cost of a missed condition is that amount or less.

## What changed for 2026

The director pay minimum rose from €45,000 to €50,000 for tax year 2026. An owner-manager who took a salary between €45,000 and €50,000 and qualified before may no longer qualify.

## How AccountsOS helps

Finn reads director pay from your payroll records and flags the €50,000 condition when a company is claiming the SME rate. It does not decide eligibility for you. The other conditions need a human check, so ask your accountant to confirm before you rely on the reduced rate.