Global Mobility Tax

Belgium | Tax policy declaration

Summary

In the wake of the Coalition Agreement 2025-2029, Mr. Jan Jambon, who is the new Minister of Finance in Belgium, reiterated the intended tax measures of the Federal Government in his tax policy declaration. This plan focuses on a tax reform which is based on the principles of fairness, neutrality, and simplicity, aiming to strengthen the purchasing power of working individuals and enhance business competitiveness.

The Belgian tax reform will be implemented in several phases. Various tax provisions intended to support the budget and financing of the planned tax shift are consolidated into a draft program law, which will become subject to parliamentary approval.

Stay updated on the latest developments through our microsite, where you can also find a comprehensive overview of the anticipated tax, labor market, and immigration measures outlined in the Government Agreement.

In detail

Please find below a high-level overview of some of the key income tax related measures stipulated in the tax policy declaration.

Increasing the net income for working people

• Increase in the standard personal tax-free allowance
• Strengthening of the federal job bonus
• Lowering (but not abolishing) the special social security contribution
• Measures for flexi-jobs, student work and overtime
• Additional income earned by retirees will be subject to a straightforward and final tax levy of 33%
• Investigating whether the tax reduction for childcare expenses can be further increased for working people
• Abolishment of the tax reduction for unemployment income

Neutrality of family taxation

• Making the special social security contribution ‘single-proof’ to promote neutrality towards various forms of cohabitation
• Equal increase in the lump-sum tax-free allowance for dependent children
• Making the tax deduction for alimony payments less beneficial
• Reducing the tax benefit of the marital quotient for non-retirees by half, and a gradual phase- out of the marital quotient for retirees

Employment taxation / reward

• Enhancement of the Belgian expat regime
• Increase of the maximum amount and (corporate) tax deduction for meal vouchers
• Expansion of the copyright income tax regime to address the existing disparity affecting digital professions (which are currently excluded)
• Extended transition period for hybrid cars, along with a reform of the mobility budget
• Creation of legal certainty and stability for investments in research and development, including the possibility for enterprises to be recognized as research centers and the elimination of regional certification requirements

Management companies / self-employed persons

• Abolition of tax increases due to insufficient advance payments
• Introduction of a new tax deduction for self-employed individuals
• Increase of the minimum remuneration for company directors from EUR 45.000 to EUR 50.000 and subject to annual indexation
• Introduction of a 20% cap for benefits in kind: 20% of a company director’s annual gross salary may consist of benefits in kind, with additional bonuses still permissible on top of the gross salary
• Introduction of a capital gains tax of 5% upon exiting a so-called “DRD Bevek”.
• Harmonization of the VVPRbis system and the liquidation reserve, which is specifically relevant for management companies in Belgium

Taxation of movable income

• Introduction of a general 10% solidarity contribution for realized capital gains in the future on financial assets, including crypto-assets, built up as from the moment of the introduction of this solidarity contribution
• Simplification and modernization of the tax on stock exchange transactions
• Investigation on how to tackle the evasion of the annual tax on securities accounts
• Stimulating people to invest their savings into the economy via a variant of the Cooreman- Declerq law. In this respect, the existing tax reductions for start-ups and scale-ups will be integrated into one reduction, and misusage will be addressed.

Other measures

• Abolition of the federal interest deduction for non-primary residences
• Reform of the tax penalty and sanction policy
• Restoring the relationship between the taxpayer and the tax authorities
• Combatting tax fraud will be a priority. This also means the efficient usage of data. In this respect, amongst other measures, a legal framework will be created for the usage of data from the Central Contact Point (CCP) regarding accounts and financial contracts. The access to the CCP will become easier for the tax administration, whilst maintaining privacy
• Simplifying of the tax system by reducing the number of tax regimes, benefits and exemptions
• In general, various simplification measures will be taken in order to mitigate administrative formalities. The Federal Government will also take measures to reduce the tax and administrative burden for cross-border employees

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Philip Maertens
Partner

Nic Boydens
Partner

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