Progressive reduced rates

There is only one basic rate of corporation tax, currently set at 33%. Under certain conditions, your business can take advantage of reduced rates.


The minimum remuneration of at least one of the directors of the business is an important condition for granting reduced rates. The minimum level of remuneration has gradually increased:

  • EUR 24,500 for the 2004 tax year
  • EUR 27,000 for the 2005 tax year
  • EUR 30,000 for the 2006 tax year
  • EUR 33,000 for the 2007 tax year
  • EUR 36,000 for the 2008 and subsequent tax years


Please note: the reduced rate for the company moves the fiscal burden onto the director's personal tax liability, because they move into the highest income bracket. Talk to your personal advisor to decide whether this is an attractive option in your case.

Companies liable for Belgian corporation tax can take advantage of progressive reduced rates, under certain conditions.

The following companies, however, are excluded from reduced rates:

  1. Companies that own equities or shares where the investment value exceeds 50% either of the reassessed value of the paid-up capital or of the paid-up capital plus taxed reserves and capital gains recorded in the accounts. The value of the equities or shares and the amount of the paid-up capital, reserves and capital gains are calculated as at the closing date of the annual accounts of the company that owns the equities or shares. To determine whether the 50% threshold has been exceeded, no account is taken of equities or shares that represent at least 75% of the paid-up capital of the company that issued the equities or shares.
  2. Companies other than cooperatives authorised as such by the Conseil national de la coopération [National Cooperative Council], at least half of whose equities or shares representing the share capital are held by one or more other companies.
  3. Companies whose dividend payments exceed 13% of the paid-up capital at the start of the tax period.
  4. Companies other than cooperatives authorised as such by the Conseil national de la coopération [National Cooperative Council], which do not grant to at least one of their directors performance-related remuneration for the tax period concerned that is equal to or greater than the company's taxable income where said remuneration is less than EUR 36,000. All kinds of benefits are included in the calculation. 
Progressive reduced rates


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