Belgium: Proposed direct and indirect tax measures under government agreement to be presented to Parliament
Political agreement on capital gains tax on financial assets also reached.
The government approved, in a second reading after legal vetting by the Council of State, a draft law containing a second series of tax measures that were part of the government agreement, including measures related to corporate income tax and tax procedures.
The corporate income tax measures included provisions relating to:
- Dividends received deduction
- Investment deduction
- Car taxation
- Abolition of several tax benefits (e.g., exemption of capital gains on business vehicles)
The draft law will now be sent to Parliament for adoption, and it is expected that the law will be adopted in the coming weeks.
Read a July 2025 report prepared by the KPMG member firm in Belgium
The government previously approved a draft law containing the first series of measures that were part of the government agreement, including measures related to:
- Income taxes
- Dividends received deduction
- Carried interest
- Exit tax
- Liquidation reserve and VVPRbis
- Value added tax (VAT)
- Reduced 6% VAT rate permanently applicable to the supply of dwellings
- Increased VAT rate on heating installations
- Repeal of reduced VAT rate on coal
- Other taxes
- Tax on securities accounts
- Flight tax
- Tax procedures
The draft law has been sent to Parliament for adoption, and it was originally expected that the law would be adopted before July 1, 2025. However, it’s adoption has been postponed.
Read a June 2025 report prepared by the KPMG member firm in Belgium
Finally, the government on June 30, 2025, reached a political agreement on the capital gains tax on financial assets, which will now be sent to the Council of State for legal vetting.
Under the agreement, a new capital gains tax on financial assets (generally imposed at a 10% rate) would be introduced effective January 1, 2026.
Read a July 2025 report prepared by the KPMG member firm in Belgium