Taxes in Europe Database v2
Income Tax Code, articles 220 to 226.
Sometimes also the local instances. The share of the local authorities is related to the withholding tax on real estate.
Territory of Belgium.
Three categories of bodies are liable to legal entities income tax:
(*) Respectively SRWT, De Lijn and STIB-MIVB.
Please note that inter-municipal associations are no longer liable to legal entities income tax, but to corporate income tax for financial years closed at the earliest on 1 July 2015. As a result, inter-municipal associations for which the closure of the financial year corresponds to the calendar year are still liable to LEIT for tax year 2015.
Taxable income earned by legal entities.
1. Basic principle
Legal entities liable to LEIT are not taxed on their total annual net income, but only:
The levy of the legal entities income tax occurs by means of withholding taxes.
2. Taxation of income from movable property
Where taxpayers subject to LEIT receive income from movable property or miscellaneous income of movable origin in respect of which no withholding tax on income from movable property was deducted at source, the withholding tax is due by the recipient of the income.
3. Five cases of putting items on the tax roll
However, in five special cases specific items are put on the tax roll. In all these cases the crisis surcharge applies and is subject to the same conditions as in corporate income tax.
a) Certain types of real estate income, notably net income from land and buildings situated in Belgium and leased, are subject to a tax of 20%. This tax only applies to category 3 (companies and associations, particularly non-profit making companies which are not involved in profit-making concerns or transactions).
b) Capital gains made through the transfer for a consideration of developed or undeveloped real estate are taxable. This applies to category 3.
Capital gains from built real property
These capital gains are only taxable as miscellaneous income where all the following conditions are met:
Capital gains from land
These capital gains are only taxable where the following conditions are jointly met:
c) The capital gains on important participations is taxable, at the 16.5% rate. This applies to category 3.
These capital gains are taxable as miscellaneous income only where an important parcel of shares (more than 25%) is transferred to a foreign company located outside the European Union or to a legal person liable to NRIT (non-resident income tax).
d) Expenses or benefits in kind which are not justified and financial advantages or benefits in kind, are taxable according to the same arrangements as for CIT (contribution of 100% on secret commissions, unless it can be established that the beneficiary for those expenses, benefits in kind and financial advantages is a legal person; in this case, the contribution amounts to 50%). This does not apply to category one.
e) Pension contributions and pensions considered as disallowed expenses under CIT, as well as financial advantages or benefits in kind, as well as the amount equal to 17% of the benefit in kind resulting from the private use of a company car, are liable to a 33% tax. This tax is not due by category 1 (i.e. the State, provinces, etc.).
See TAX OBJECT AND BASIS OF ASSESSMENT.
Super reduced rate
Federal Public Service Finance
The revenue of this tax is of minor importance, it is included in the revenue from Taxes on the income or profits of corporations (d51b). As for CIT, the LEIT revenue is collected via withholding taxes, advance payments and assessments. The cash amounts collected through LEIT assessments are shown above, they represent about 0.01% of total tax revenue and 0.005% of GDP.