Belgium: Draft program law includes first series of tax measures included in coalition agreement
Includes income and indirect tax measures, as well as changes to tax procedures
The government approved a draft program law that includes a first series of tax measures included in the Coalition Agreement 2025-2029 of the new Belgian federal government. Read TaxNewsFlash
The draft law includes both income and indirect tax measures, as well as changes to tax procedures.
- Proposed income tax measures include measures relating to the investment deduction, car taxation, individual income tax, carried interest, exit tax, liquidation reserve, and the dividend taxation regime for small and medium-sized companies (VVPRbis regime).
- Proposed indirect tax measures include a permanent reduced value added tax (VAT) rate for the supply of dwellings, increased VAT rate on heating installations, repeal of reduced VAT rate on coal, and changes to the tax on securities accounts and the flight tax.
Other measures will be incorporated in thematic laws later. The draft law will be sent to the Council of State for legal vetting and subsequently submitted to Parliament for adoption. It is expected that the draft law will be adopted and published in the official gazette before July 1, 2025.
The KPMG member firm in Belgium prepared the following April 2025 reports discussing the various tax measures in the draft law:
- Read the report on the income tax measures
- Read the report on the indirect tax measures
- Read the report on the tax procedure measures