Corporate income tax rate cut to 25%
The standard Belgian corporate income tax rate is 25% from 2020, reduced from 33% through the 2017 corporate tax reform.
What changed and what to do
What changed
The 2017 corporate tax reform reduced the standard rate of corporate income tax from 33% to 25%, in force since 2020. The same reform sits behind the reduced 20% rate on the first €100,000 of profit for qualifying small companies.
Who it affects
- All Belgian companies subject to corporate income tax
- Owner-managed SRLs estimating their tax bill
What to do
Use 25% as the standard rate in forecasts. Check separately whether the SME reduced rate conditions are met.
SME reduced rate needs €50,000 director pay from 2026
For tax year 2026, at least one director must receive €50,000 gross annual remuneration for the 20% SME rate. The figure was €45,000 before.
What changed and what to do
What changed
The 20% rate on the first €100,000 of profit (maximum saving €5,000) now requires minimum gross annual remuneration of €50,000 for at least one director, up from €45,000. Benefits in kind cannot exceed 20% of that package, and the company must meet the small company definition and further conditions in articles 215 and following of the Income Tax Code 1992. A company that fails any condition pays 25% on all profit.
Who it affects
- Owner-managed SRLs claiming the 20% reduced rate
- Directors who pay themselves less than €50,000 gross
What to do
Check director pay against €50,000 before the year-end. Ask your accountant to confirm the other conditions before you rely on the reduced rate.
VAT summer holiday arrangement abolished
The Belgian VAT holiday arrangement that deferred summer returns was abolished from 2026. Late returns are now late.
What changed and what to do
What changed
The arrangement that historically allowed VAT return submissions to be deferred in July and August was abolished from 2026. Returns filed after the statutory deadline are regarded as late. For 2026 only, no fines applied for the June 2026 monthly return or the Q2 2026 quarterly return filed by 10 August 2026, or the July 2026 monthly return filed by 10 September 2026. Any VAT due still had to be paid by the normal deadline.
Who it affects
- All VAT-registered businesses filing monthly or quarterly
What to do
File on the normal deadlines, 20th for monthly and 25th for quarterly. Do not plan around a summer deferral.
New bank account for VAT payments
From 1 May 2026, VAT payments go to the VAT administration's new account, BE41 6792 0036 4210.
What changed and what to do
What changed
From 1 May 2026, VAT payments must be made to the new bank account number BE41 6792 0036 4210. This applies to all VAT payments from Q2 2026 onwards and the old account number is no longer valid.
Who it affects
- Every VAT-registered business paying VAT by bank transfer
- Businesses with standing orders set up to the old account
What to do
Update saved payees and standing orders to the new account number before the next VAT payment.
Cap on employer social security for high earners
From 2026, the basic employer contribution is capped at €85,000 of pay per employee per quarter. A lower €67,500 threshold is expected from 2027.
What changed and what to do
What changed
The Programme Act of 18 July 2025 introduced a cap on the basic employer social security contribution (about 24.92%) at €85,000 of pay per employee per quarter from 2026. Pay above that is exempt from the basic contribution. The additional contributions of about 3% and the 13.07% employee contribution still apply to the full salary. The threshold is indexed by 2% each time the health index rises by 2%, and is expected to fall to €67,500 per quarter from 2027.
Who it affects
- Employers with highly paid employees or directors
- Companies budgeting payroll costs for 2026 and 2027
What to do
Only highly paid staff are affected. Apply the cap to the basic contribution only, and treat the 2027 figure as expected, not confirmed.