Tax burden BVBA Belgium
The corporate tax rate is set at 33%. (with crisis contribution 33.99%). However, if the taxable income (profit) does not exceed EUR 322,500, the tax is determined as follows:
from 0 to 25,000 euros: 24.25%;
from 25,000 euros to 90,000 euros: 31%;
from 90,000 euros to 322,500 euros: 34.5%;
322,500 euros and more: 33%
To benefit from the reduced rate (less than 33%), you must meet the following conditions:
The dividends paid by the company may not exceed 13% of the paid-up capital at the beginning of the taxable period; (so if the paid-up capital is 18,550.00, a maximum of 2,411.00 dividend can be paid out)
financial companies that hold participating interests whose investment value exceeds 50% are exempt from the low rate;
The company must grant a remuneration to at least one of its company directors at the expense of the result of the taxable period of at least 36,000 euros. If the taxable income of the company is less than 36,000 euros, the company must grant at least one of the directors a remuneration that is not less than the taxable income.
The company should not be part of a group to which a coordination center belongs.
The shares representing the share capital may not be owned for half or more by other companies. So more than half must be owned by natural persons.
In the case of a dividend payment to a natural person, Belgium has a “withholding tax” (dividend tax) of 15%. If a BVBA pays dividend to a European company (for example a Dutch BV that holds the shares of the BVBA) that owns at least 25% of the shares, there is no withholding tax, since this is at 0% tax based on the European Mother-Daughter Directive.
VAT rates Belgium
The rates for VAT in Belgium are as follows:
6% mainly for basic products and services of a social nature (for example: essential products, passenger transport, agricultural services)
12% for certain goods and services that are important from an economic or social point of view (for example: coal, margarine, pay-TV subscription)
21% for all other transactions involving goods or services
If you have any questions about the applicability of the BVBA in your situation, please contact us.