Belgium: Tax proposals in budget 2023 - 2024 include “windfall profits tax” on energy producers

Minister of Finance asked to submit tax reform proposal by 1 December 2022

“Windfall profits tax” on energy producers

The federal government reached an agreement on the budget for 2023 and 2024, which includes the following tax proposals:

  • Introduction of excess profits tax for energy producers with income above €180 per MWh between 1 January 2022 and 30 November 2022 and above €130 per MWh between 1 December 2022 and 30 June 2023 (possibly extended beyond June 2023)
  • Solidarity contribution from the oil sector
  • Permanent reduction in valued added tax (VAT) rate of 6% on gas and electricity (to be compensated by an adjustment of excise duties when prices normalize)
  • Extension of the rebate on household energy bills and of the reduction of excise duties on gas and electricity for businesses until March 2023
  • Minimum tax of 15% for companies with profits above €1 million by reducing the use of tax deductions from 70% to 40% (only in 2023)
  • Repeal of the notional interest deduction (at least for large companies)
  • Adjustment of tax treatment of foreign tax credit for royalties
  • Reform of the copyright regime as from 2024
  • Repeal of the tax reduction for second dwellings as from 2024
  • Denial of deduction for bank tax
  • Indexation of parafiscal company contribution
  • Reinforcement of packaging levy
  • Increased excise duties on tobacco, also excise duties on e-cigarettes as from 2024
  • Technical correction of implementation of VAT directive on e-commerce
  • Implementation of “health shift” by increasing VAT on unhealthy products and decreasing VAT on healthy products (such as vegetables and fruit)

Next steps

The Minister of Finance has been asked to submit a tax reform proposal by 1 December 2022.

Read an October 2022 report prepared by the KPMG member firm in Belgium


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.