Business Operations in Belgium (Portfolio 953)

Tax Management Portfolio, Business Operations in Belgium, gives a summary of the main business and tax laws of Belgium, as well as general background information concerning operations in the country.

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This Portfolio includes detailed analysis of Belgian company law, corporate and individual income taxation, Belgian income tax treaties, and indirect taxation, especially value added tax (VAT).

The Worksheets contain, among other things, an English translation of standard corporate articles and the full text of the Belgium-United States tax treaty.


Business Operations in Belgium was authored by the following experts.
Jacques Malherbe, J.D., University of Louvain (1962); LL.M., Harvard University (1964); Professor em., University of Louvain; Professor, ICHEC.

Philippe Malherbe, J.Lic., University of Louvain (1977); LL.M., UC Berkeley (1978); Lecturer, University of Louvain; Visiting Professor, University of Paris-Est Créteil.

Henk Verstraete, J.Lic., University of Leuven (1999); LL.M. in Taxation, New York University (2003); Lecturer, University of Leuven; Visiting Professor, European Tax College (University of Leuven - Tilburg University; Professor, Brussels Tax School.

Pascal Faes, J.D., University of Ghent (1984); Special Degree in Economics, University of Brussels (VUB) (1987); Master in Tax Law, University of Brussels (ULB) (1991).


Detailed Analysis

I. Belgium: The Country, Its People and Economy

A. The Country

1. Political System

2. Judicial System

3. Arbitration

B. The People

C. The Economy

D. Legal System

1. Codes

2. Statute of Limitations

3. Branches of Law

II. Operating a Business in Belgium

A. Foreign Investment Regulation

1. Opportunities

2. Incentives

a. In General

b. The Brussels-Capital Region

c. The Walloon Region

d. The Flemish Region

3. Restrictions

B. Currency and Exchange Controls

1. The Currency

2. Exchange Transactions

a. Transfers by Nonresidents

(1) Investments

(2) Repatriations

b. Transfers by or to Residents to or from Foreign Countries

C. Trade and Commerce Regulation

1. Commercial Law

2. Imports and Exports

a. Licenses and Quotas

b. Customs Duties and Other Taxes

(1) Customs Duties

(2) Excise Duties

(3) Value-Added Tax

c. Documentation

3. General Regulation of Business

a. Competition Law

(1) Competent Bodies

(2) Provisional Measures

(3) Control over Decisions of the Competition Council, its Chairman and the Council of Ministers

(4) Implementation of the Act by Ordinary Jurisdictions

b. Mergers

c. Certain Regulated Trade Areas and Practices

(1) Fair Trade Practices Act

(a) Trade Practice Provisions that Apply to Both Consumers and Professional Purchasers

(b) Trade Practices Addressed Only to Consumers

(c) Enforcement of the Fair Trade Practices Act

(2) Consumer Credit Agreements

(3) Sales Agreements - Certain Characteristics

(4) Exclusive Distribution Agreements

(5) Commission Agents

d. Price Controls

(1) In General

(a) Normal Price

(b) Price Ceilings

(c) Price Increases

(d) Program Contracts

(e) Indexation Clauses

(2) Wage Freeze

e. Securities Regulation

(1) Organization of Stock Exchanges

(2) Qualified Intermediary

(3) Securities Houses

(4) Securities Transactions

(5) Undertakings for Collective Investments in Transferable Securities

f. Electronic Commerce

(1) Legislation and Other Acts Governing Business on the Internet

(2) Contracting on the Internet

(3) Security

(4) Domain Names

(5) Advertising

(6) Financial Services

(7) Privacy and Data Protection

4. Licensing and Franchising in Belgium

a. Patents

(1) Legislation

(2) Patentable Invention

(3) Scope and Effects of Patent Protection

(4) Forced Licenses

(5) Tax

b. Know-How

c. Industrial Designs

(1) International Convention

(2) European Regulation on Community Designs

(3) Benelux Design Protection

(4) Procedure

(5) Scope and Effects of Design Protection

(6) Licenses

(7) Tax

d. Copyrights

(1) Legislation

(2) Copyrightable Work

(3) Procedure

(4) Effects of the Protection

e. Trademarks and Trade Names

(1) In General

(2) Procedure

(3) Effect of the Protection

(4) Transfers and Licenses

(5) Tax

D. Immigration Regulations

E. Labor Regulations and Social Security System

1. Labor Regulations

a. The Organization of Labor Relations

b. Labor and Employment Contracts

c. Liability

d. Termination of Contracts

e. Suspension of the Execution of the Labor Contract

f. Noncompetition Clause

g. Arbitration Clause

h. Collective Dismissal and Closure of an Enterprise

i. Working Hours, Holidays

j. Paid Educational Leave

k. Remuneration

l. Pregnant Women

m. Equal Opportunity

n. Administrative Obligations

o. Employment Policy Law

(1) Recruitment, Interviewing and Selection

(2) Employment Mediation

(3) Temporary Employment

(4) Outplacement

(5) Foreign Workers

2. Social Security System

F. Financing the Business

1. Banking System

2. Financial Markets

III. Forms of Doing Business in Belgium

A. Principal Business Entities

1. Sole Proprietorship

2. Joint Stock Corporation

3. Private Limited Liability Company

4. Partnership

5. Other Entities

6. Choice of Entity

B. Joint Stock Corporation

1. Formation

a. Purpose Clause

b. Corporate Name

c. Incorporators

d. Articles of Incorporation

e. Capital Stock

f. Incorporation Procedure

g. Costs of Incorporation

2. Operation

a. License

b. Amendment of Articles

c. Increases and Reductions of Capital Stock

d. Mutual Shareholding

e. Acquisition of Own Stock

f. Exclusion, Withdrawal and Forced Redemption

g. Corporate Officers

h. Corporate Governance

(1) Legal Status of the Direction Committee

(2) Conflicts of Interest Inside Groups of Companies

(3) Responsibility of a Legal Person Entrusted with a Mandate as Director

(4) Conduct of the General Shareholders' Meetings

i. Shareholders' Meetings

j. Rights of Shareholders of a Company Limited by Shares

k. Rights of Minority Shareholders of a Private Company Limited by Shares

l. Board of Directors

m. Judiciary or Temporary Management

n. Books and Records

o. Financial Statements

p. Dividends and Other Distributions of Profits

q. Reserves

3. Mergers and Divisions

a. Merger by Way of Acquisition

b. Concentration of all the Shares in the Hands of One Shareholder

c. Merger by Way of the Creation of a New Company

d. Divisions

e. Contribution of a Branch or Universality

4. Dissolution

5. Court Ordered Dissolution

6. Liquidation

7. Reorganization

C. Private Limited Liability Company

1. Formation

2. Operation

3. Dissolution - Transformation

D. Partnership

1. General Partnership

a. Formation

b. Administration

c. Dissolution

2. Limited Partnership

3. Limited Partnership with Shares

E. Branch of a Foreign Corporation

1. Registration

2. Liability

3. Books and Records

F. Other Entities

1. Société Cooperative or Cöoperative Vennootschap

2. Corporation with a Social Purpose

G. Certification of Shares

H. Public Companies

IV. Principal Taxes

A. Taxation: General Principles

1. The Concept of "Taxes"

2. Principles Laid Down in the Belgian Constitution

a. Legality Principle

b. "Annuality" Principle

c. Equality Principle

3. Principles Resulting from the Nature of Taxes and from the Law in General

a. Tax Legislation Is of Public Order

b. Territoriality Principle

c. Common (Civil) Law Governs Tax Law

d. Primacy of Treaty Law over Domestic Tax Law

e. Interpretation of Tax Law

f. Burden of Proof

g. "Nonretroactivity" of Tax Laws

h. Reality Principle

i. Free Choice of the "Least Taxed Route"

j. Mediation Procedure

B. Income Tax

C. Inheritance and Gift Tax

1. Civil Law Rules Affecting Gifts and Inheritances

a. Matrimonial Regimes

(1) Personal Insurance other than Life Insurance

(2) Life Insurance

(3) Pensions or Group Insurance

b. Applicable Law

c. Forced Heirship

d. Trusts

2. Inheritance Tax

a. General

b. Applicable Regional Law

c. Tariffs

d. Transfer of Family Business

(1) The Flanders Region

(a) Types of Businesses and Companies Covered by the Reduced Rate

(b) Taxable Base and Beneficiaries of the Reduced Rate

(c) Nonapplicability of Progressive Rates

(d) Conditions for Maintenance of Reduced Rate

(e) Measures to Prevent Abuse

(2) The Region of Wallonia

(a) Types of Companies, Professions and Businesses Covered

(b) Taxable Base for Reduced Rate

(c) Amounts to Which Progressive Rates Apply

(d) Conditions for Maintenance of Reduced Rate

(e) Measures to Prevent Abuse

(3) The Region of Brussels

(a) Types of Businesses, Professions and Companies Covered

(b) Taxable Base for Reduced Rate and Beneficiaries

(c) Amounts to Which the Progressive Rates Apply

(d) Conditions for Maintenance of Benefit of the Reduced Rate

(e) Measures to Prevent Abuses

e. Valuation of Assets

(1) Company Shares

(2) Claims

f. Trusts

3. Gift Tax

D. Sales Tax or Value-Added Tax

1. In General

2. Definition and Scope

a. Definition

b. Taxpayers

c. Taxable Transactions

(1) Delivery of Goods

(a) Definition

(b) Time of Delivery

(2) Supply of Services

(a) Definition

(b) Place of Supply of Services

(c) Time of Supply of Services

(d) Value Added Tax Regime for Telecommunication Services

(3) Imports

(4) Intra-European Union Acquisitions

(a) Definition

(b) Place of Acquisition

(c) Time of Acquisition

d. Taxable Basis

e. Tax Rates

(1) General Rates

(2) Construction Subsidy

f. Exemptions

g. Credit

(1) General Rule

(2) Pro Rata Credit

(3) Reassessment

h. Administrative Obligations

(1) General Obligations

(2) Responsible Tax Representative

i. Special Regimes

(1) Presumption Method

(2) Small Enterprises

(3) Farmers

(4) Other Regimes

j. Refunds

(1) Excess Credits

(2) Other Causes for Refund

(3) Interest on Refunds to Foreign Taxpayers

k. European Union Lawyers

E. Capital Investment Tax

F. Registration Duties

1. Sale or Exchange of Real Estate Located in Belgium

2. Auctions of Chattels

3. Leases, Subleases, and Transfers of Leases

4. Vesting and Release of Mortgages on Real Estate Located in Belgium

5. Pledges on a Business

6. Partition of Real Estate Held by Joint Tenants for Valuable Consideration

7. Contributions to the Capital of Companies

8. Gift Taxes

a. General

b. Regional Provisions

(1) The Region of Flanders

(2) The Region of Wallonia

(3) The Region of Brussels

c. Gift Tax on Family Businesses

(1) Brussels

(a) Types of Businesses, Professions and Companies Covered

(b) Beneficiaries and Donors

(c) Conditions for Maintenance of Reduced Rate

(d) Measures to Prevent Abuse

(e) Reserve with Progressivity

(2) Wallonia

(a) Types of Businesses, Professions and Companies Covered

(b) Beneficiaries and Donors

(c) Conditions for Maintenance of Reduced Rate

(d) Measures to Prevent Abuse

(e) Reserve with Progressivity

(3) Flanders

(a) Types of Businesses, Professions and Companies Covered

(b) Beneficiaries

(c) Conditions for Maintenance of Reduced Rate

(d) No Reserve with Progressivity

G. Payroll Tax

H. Trade Tax

I. Net Worth Tax

J. Local Taxes

K. Stamp Fees

1. Fee on Documents

2. Stamp Duty on Stock Exchange Transactions

3. Duty on Insurance Contracts

4. Duty on the Posting of Bills

5. Tax on the Delivery of Bearer Shares

6. Tax on Collective Investments in Securities

L. Taxes Assimilated to Income Tax

M. Ecotaxes

1. General Rules

2. Drink Receptacles

3. Disposable Items

4. Batteries

5. Receptacles for Certain Industrial Products

6. Marks

7. Taxable Occurrence

8. General Exemptions

9. Administrative Procedure

V. Taxation of Domestic Corporations

A. Scope of Taxation - Residence - Fiscal Transparency

1. Scope of Taxation

2. Residence

a. General

b. First Condition: Legal Personality

c. Second Condition: Engaged in Business or Profit-Making Activities

d. Third Condition: Fiscal Domicile

3. Fiscal Transparency

B. Determination of Net Taxable Income

1. Introduction

2. Valuation Rules

a. General

b. Acquisition Cost

c. Depreciation of Assets

(1) General

(2) Depreciation Base

(3) Depreciation Schemes and Methods

(a) General

(b) Straight-Line Method

(c) Declining Balance Method

(d) Other Depreciation Methods

(4) Specific Rules Applying to Certain Balance Sheet Items

(a) General

(b) Formation Expenses

(c) Intangible Fixed Assets

(d) Tangible Fixed Assets

d. Capital Subsidies

e. Write-Down on Assets (Amounts Written Off)

(1) General

(2) Write-Downs on Shares

(3) Write-Downs on Accounts Receivable

(4) Write-Back of Amounts Previously Written Down

f. Revaluation Surpluses

3. Gross Income from Business Operations Effectively Carried Out

a. General

b. Operating Income

(1) Concept

(2) Abnormal or Gratuitous Advantages

(a) General

(b) Belgian Grantor

(c) Non-Belgian Recipients

(d) Belgian Recipients

(e) Transfer Pricing

(f) Burden of Proof

(3) Capital Gains

(a) General

(b) Capital Gains on Stocks and Contracts in Progress

(c) Capital Gains on Tangible and Intangible Fixed Assets â€" General Rule

(d) Revaluation Gains

(e) Long-Term Gains and Involuntary Gains on Tangible and Intangible Fixed Assets

(f) Capital Gains on Shares

(4) Investment Reserve

(a) General

(b) Scope of Exemption

(c) Qualifying Companies

(d) Conditions

(e) Deferred Taxation

(5) Hidden Reserves

4. From Gross to Net Taxable Income: Deduction of Business Expenses and Certain Reserves

a. Business Expenses

(1) General

(2) Start-up Expenses

(3) Travel and Entertainment Expenses

(4) Automobile Expenses

(5) Social Benefits

(6) Interest and Royalties

(7) Taxes

(8) Depreciation

(9) Charitable Contributions

(10) Current-Year Losses

(11) Casualty Losses

(12) Reserve Accounts

(13) Bad Debts

(14) Rents

(15) Salaries and Wages - Commissions, Fees and Rebates - Secret Commissions

(16) Other Deductible Expenses

b. Deduction of Certain Reserves

c. Capital Expenditure

C. Deductions from Net Taxable Income

1. Dividends Received Deduction

a. General

b. Eligibility Conditions

c. Deduction Limited to 95%

d. Exclusion Rules

(1) First Exclusion Rule

(2) Second Exclusion Rule

(3) Third Exclusion Rule

(4) Fourth Exclusion Rule

(5) Fifth Exclusion Rule

e. Impact of Current-Year Losses

f. No Credit for Nonqualifying Dividends

2. Patent Income Deduction

a. General

b. Scope of Application

c. Qualifying Patents

d. Qualifying Patent Income

e. No Carryover of Deduction

f. Combination with Notional Interest Deduction and Investment Deduction

g. Impact on Foreign Tax Credit

3. Deduction for Risk Capital or Notional Interest Deduction

a. General

b. Scope of Application

c. Computation of Adjusted Equity

(1) Equity for Accounting Purposes

(2) Adjustments

(a) First Adjustment: Shares

(b) Second Adjustment: Foreign Establishments and Real Property Situated in a Treaty Country

(c) Third Adjustment: Specific Anti-Abuse Provisions

(d) Fourth Adjustment: Capital Subsidies, Tax Credits for Research and Development and Revaluation Gains

(e) Fifth Adjustment: Adjustment for Variations in Composition of Equity During Taxable Period

d. Computation of Deduction

e. Carryover of Deduction

f. Deduction Carryovers and Change of Control

g. No Intangibility Condition

h. Formalities

i. No Combination with Investment Reserve

j. Circular on Anti-abuse Measures

4. Deduction of Loss Carryovers

a. General Rule

b. Mergers, Split-Ups and Certain Contributions in Kind

(1) General

(2) Tax-Exempt Contribution of a Division, a Branch of Activity or a Universality of Goods

(3) Tax-Exempt Merger

(4) Tax-Exempt Split-Up

(5) Additional Remarks

c. Loss Carryovers and Abnormal or Gratuitous Advantages

d. Loss Carryovers and Change of Control

5. Investment Deduction

a. General

b. "Ordinary" Investment Deduction

c. "Increased" Investment Deduction

d. "Spread" Investment Deduction

e. Loss of Investment Deduction or Investment Deduction Carryovers

6. Gifts

D. Determination of Taxable Income â€" Technical Approach

1. Introduction

2. First Operation: Determination of Elements of the Tax Base

a. General

b. Reserves

c. Disallowed Expenses

d. Dividends

3. Second Operation: Breakdown of Profits According to their Source

4. Third Operation: Deduction of Foreign-Source Profits Exempted Under a Tax Treaty, Exempted Gifts, and Investment Reserve

5. Fourth, Fifth and Sixth Operations: Dividends Received Deduction and, to the Extent Possible, Patent Income Deduction and Notional Interest Deduction

6. Seventh Operation: Deduction of Carryover Loss

7. Eighth Operation: Investment Deduction

E. Computation of Corporate Income Tax Liability

1. Tax Rates

a. Standard Corporate Income Tax Rate

b. Reduced Corporate Income Tax Rates

(1) Overview

(2) Exclusions

c. Reduced Tax Rate for Certain Types of Foreign-Source Income

d. Special Levy on Secret Commissions

2. Tax Increase for No or Insufficient Advance Tax Payments

3. Crisis Surcharge

4. Tax Credits

a. Real Property Withholding Tax

b. Personal Property Withholding Tax

(1) General

(2) Dividends - Belgian Dividends

(a) General

(b) Exemptions

(c) Liquidation and Share Redemption Surpluses

(3) Dividends - Foreign Dividends

(4) Interest

(a) General

(b) Exemptions

(5) Royalties

(6) Imputation of Personal Property Withholding Tax

c. Foreign Tax Credit

(1) General

(2) Royalties

(3) Interest

(a) "Real" Foreign Tax Credit

(b) Present Regime

(c) "Channeling"

F. Specific Operations

1. Introduction

2. Formation of a Company - Capital Increases

a. General

b. Capital Contributions

(1) Tax Treatment of the Contributing Shareholder

(2) Tax Treatment of the Receiving Company

(3) Capital Increase by Incorporation of Retained Earnings

3. Capital Reductions

a. General

b. Capital Reduction by the Repayment of Capital to the Shareholders

c. Capital Reduction by Absorption of Losses

4. Redemption of Stock

a. General

b. Tax Treatment

5. Partial Distribution of a Partnership's Assets

6. Liquidation

a. General

b. Tax Treatment

(1) Application of Corporate Income Tax

(2) Liquidation Distributions

(3) Shareholders' Taxation

7. Operations Assimilated to Liquidation

8. Business Reorganizations

a. Contribution of a Branch of Activity or a Universality of Goods

(1) Concepts

(2) Conditions for Tax Exemption

(3) Optional Regime

(4) Tax Treatment of the Receiving Company

b. Mergers and Split-ups

(1) General

(2) Concepts

(3) Conditions for Tax Exemption

(4) Tax Exemption Regime

(a) Tax Treatment of the Acquired or Split-up Company

(b) Tax Treatment of the Acquiring or Receiving Company (or Companies)

(c) Tax Treatment of the Shareholders of the Acquired or Split-up Company

G. Special Tax Regimes

1. Introduction

2. Coordination Centers

a. Introduction

b. Eligibility Conditions

(1) Legal Form

(2) International Group of Companies

(3) Authorized Activities

(a) Headquarters Functions

(b) Financial Services

(4) "Intra muros" Requirement

(5) Employment Condition

(6) Recognition by Royal Decree

c. Tax Treatment

(1) Corporate Income Tax

(2) Personal Property Withholding Tax

(3) Notional Personal Property Withholding Tax

(4) Real Property Withholding Tax

(5) Registration Duties

(6) Annual Tax on Coordination Centers

(7) Recognition Period

d. Other Advantages

e. Latest Developments

3. Distribution Centers

a. Introduction

b. Eligibility Conditions

(1) Legal Form

(2) Authorized Activities

(3) "Intra Muros" Requirement

(4) Approval of the Tax Authorities

c. Tax Treatment

(1) General

(2) Minimum Tax Base

(3) "Actual" Tax Base

(4) Approval Period

d. Transfer Pricing

e. Combination with a Coordination Center

4. Service Centers

a. Introduction

b. Eligibility Conditions

c. Authorized Activities

d. Tax Treatment

e. Tax Authority Approval

5. Investment Companies

a. Introduction

b. Tax Treatment

VI. Taxation of Foreign Corporations

A. Definition of Foreign Corporations

B. Taxable Basis of a Foreign Company

1. General

2. Foreign Corporations Acting through an Establishment or a Branch in Belgium

a. Definition

b. Taxable Income

3. Foreign Corporations Earning Belgian Source Income without an Establishment in Belgium

4. Applicable Tax Rules and Tax Rates

VII. Taxation of a Branch

VIII. Taxation of Partnerships

IX. Taxation of Individuals - Residents

A. Scope of Taxation â€" Residence

1. Scope of Taxation

2. Residence

B. Determination of Gross Income

1. General

2. Income from Real Property

a. The Concept of "Cadastral Income"

b. Taxable Income

c. Exemptions, Reductions and Deductions

d. Real Property Withholding Tax

3. Income from Personal Property

a. General

b. Income to Be Included in the Taxpayer's Tax Return

c. Income Not to Be Included in the Taxpayer's Tax Return

(1) Investment Income

(2) Interest Income

d. Taxation Rules

e. Personal Property Withholding Tax

4. Professional Income

a. General

b. Business Profits

(1) Operating Profits

(2) Increase in the Value of Assets or Decrease in the Value of Liabilities

(3) "Latent" Reserves

(4) "Hidden" Reserves

c. Gains

d. Profits and Gains Resulting from a Previously Exercised Professional Activity

e. Salaries

(1) Employees

(a) General

(b) Benefits in Kind

(2) Directors and Active Partners

f. Pensions and Annuities

g. Stock Options

(1) General

(2) Taxable Event

(3) Determination of the Taxable Amount

(4) Taxation in the Hands of the Beneficiary

(5) Reporting and Withholding Requirements

(6) Stock Options Granted Before January 1, 1999: "Old" Options

h. Participation Plans

5. Exemptions

a. Social and Cultural Exemptions

b. Exempt Pensions, Annuities, etc.

c. Capital Gains

(1) General

(2) Specific Rules Applicable to Individual Taxpayers

d. Exempt Write-Downs and Provisions

6. Deductions from Professional Income

a. Business Expenses

(1) Itemized Deduction of Business Expenses

(a) Office Expenses

(b) Housing Expenses

(c) Professional Use of a Car

(d) Other Travel Expenses

(e) Conferences, Courses, Seminars

(f) Interest

(g) Remuneration and Salaries

(h) Depreciation

(i) Social Security Contributions

(j) Taxes

(k) Restaurants, Receptions and Business Gifts

(l) Social Benefits

(m) Undertakings to Take Over the Losses of a Company

(n) Interest, Royalties or Fees Paid to Nonresident Taxpayers

(o) Commissions, Rebates, Fees and Similar Payments

(p) Secret Commissions

(2) Standard Deduction for Business Expenses

b. Professional Losses

c. Economic Deductions and Exemptions

7. Allocation of Professional Income to an Assisting Spouse

8. Separate Taxation of a Spouse's Professional Income and Allocation of the "Conjugal Quotient"

9. Professional Withholding Tax â€" Advance Tax Payments

a. Professional Withholding Tax

b. Advance Tax Payments

10. Miscellaneous Income

a. General

b. Main Categories of Miscellaneous Income

(1) Profits from Services, Operations or Speculative Activities

(2) Prizes and Subsidies

(3) Alimony Payments

(4) Income from the Sublease or the Transfer of a Lease of Real Property

(5) Gains on Land

(6) Gains on Transfers of Shares of Belgian Companies

C. Gross and Net Global Taxable Income

1. General

2. Alimony Payments

3. Gifts and Charitable Contributions

4. Domestic Servants

5. Child Day Care

6. Maintenance and Renovation of Classified Real Property and Landscape

7. Complementary Deduction of Interest on Mortgage Loans

D. Assessment and Applicable Rates

1. Tax Rates

2. Tax-Exempt Portion

3. Tax Reductions

a. Long-Term Savings

b. Saving for Construction

c. Pensions, Replacement Income and "Bridge" Pensions

d. Foreign Income

4. Tax Increases

a. Tax Increase in the Case of No or Insufficient Advance Tax Payments

b. Crisis Surcharge

c. Local Surcharges

5. Separate Assessment at Flat Rate

6. Tax Credits

7. Tax Return

X. Taxation of Individuals - Nonresidents

A. Scope of Taxation

B. Taxable Income

1. General

2. Real Property Income

3. Personal Property Income

4. Profits

5. Gains

6. Profits and Gains from a Former Independent Professional Activity

7. Salaries

8. Pensions and Annuities

9. Income of Public Performers and Athletes

10. Miscellaneous Income

C. Determination of Taxable Income

D. Method of Taxation

E. Special Tax Regime for Foreign Executives

1. Scope of Application

2. Exclusions from the Tax Base

3. Procedural Aspects

XI. Anti-Avoidance Provisions

A. Simulation ("Sham Transaction Doctrine")

B. General Anti-Abuse of Law Provision

1. General

2. Application Conditions

3. Case Law on the General Anti-Abuse of Law Provision

C. Specific Anti-Avoidance Measures

1. Abnormal or Gratuitous Advantages

2. Disallowance of Certain Payments

3. Certain Transfers Disregarded

4. Excessive Interest

5. Losses, Intercompany Dividends and Abnormal or Gratuitous Advantages

6. Losses Carried Forward and Change of Control

D. Advance Tax Rulings

XII. Bilateral Tax Treaties

A. General

B. Analysis of Tax Treaty Provisions

1. Scope of Application

2. Fiscal Domicile

3. Permanent Establishment

4. Income from Real Property

5. Industrial or Commercial Profits

6. Associated Enterprises

7. Dividends

a. Dividends Paid by Belgian Corporations

b. Dividends Paid by Corporations of Treaty Countries

8. Interest

9. Royalties

10. Capital Gains

11. Independent Personal Services

12. Dependent Personal Services

13. Director's Fees

14. Artists and Athletes

15. Pensions

16. Government Service

17. Teachers and Students

18. Income Not Specifically Covered

19. Capital

20. Relief from Double Taxation

21. Non-Discrimination

22. Mutual Agreement Procedure

23. Exchange of Information


Working Papers

Table of Worksheets

Worksheet 1 Standard Corporate Articles

Worksheet 2 Registration Form with Enterprise Crossroads Bank

Worksheet 3 Social Security Dues

Worksheet 4 Coefficients for Revaluation - Year of Acquisition

Worksheet 5 Corporate Tax Return - Resident

Worksheet 6 Corporate Tax Return - Nonresident

Worksheet 7 Inheritance Duties

Worksheet 8 Gift Tax Rates

Worksheet 9 Family Business: Inheritance Duties and Gift Tax Comparison of the Regimes in the Three Regions

Worksheet 10 List of Double Taxation Agreements and Related Protocols Signed by Belgium as of January 1, 2008

Worksheet 11 Table of Withholding Tax Rates As of January 1, 2008

Worksheet 12 1970 Belgium-United States Income Tax Treaty

Worksheet 13 1987 Protocol to 1970 Belgium-United States Income Tax Treaty

Worksheet 13A 2006 Belgium-United States Income Tax Treaty

Worksheet 14 1987 Belgium-United Kingdom Income Tax Treaty

Worksheet 15 1975 Belgium-Canada Income Tax Treaty

Worksheet 16 2002 Belgium-Canada Income and Capital Tax Treaty



Labor Law:




Tax Legislation:

Belgian Reports to Congresses of International Fiscal Association