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Generic Tax Name Tax on participation in the benefit or the capital of the company
Tax name in the national language Taxe sur la participation des travailleurs aux bénéfices ou au capital de la société/ Belasting op de deelname van de werknemers in de winst of in het kapitaal van de vennootschap
Tax name in English Tax on the worker's participation in the benefit or the capital of the company
Member State BE-Belgium
Tax in force since 2001/05/22
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco

Social security contribution Employers
Legal base

This tax is laid down and regulated by the Code of taxes assimilated to income taxes (see Art. 112, 113 and 114) and by the decrees issued for its implementation.


The Act of 22 May 2001 established a taxation system which is deemed to promote employee equity participation and employee participation in the profits of the employing company or of the group this company is part of.


The tax is in force since tax year 2002.

Who sets
The tax rate is set by

The tax base is set by

The reliefs are set by



Half of the revenue collected is transferred to the National Office of Social Security.

Geographical Scope

Belgian territory.


Chargeable to employees participating in the profits or the capital of the employing company or group. Although the employee bears the burden it is the employer who actually transfers the amounts due to the tax collector.

Tax object and basis of assessment

The participation of employees in the equity capital or profits, in accordance with the Act of 22 May 2001.


A 'base tax' and a supplementary tax are to be distinguished.


The basis of the tax ('base tax') is determined as follows:

  1. with respect to participation in profits: the amount paid out cash in accordance with the participation scheme (after deduction of social security contributions);
  2. with respect to equity participation: the amount attributable to the equity participation (minimum requirements as to the appreciation), attributed in accordance with the annual participation scheme;
  3. with respect to profits which are subject to an investment savings scheme (the benefits attributed to the employee are put at the disposal of the company as a non-subordinated loan): the amount in cash attributed in accordance with the company's annual participation scheme.


The basis of the supplementary tax is the same as in 2. above with respect to equity participation and as in 3. above with respect to participation in profits which are subject to an investment savings scheme; in both cases, the “base tax” is first deducted.

Deductions, Allowances, Credits, Exemptions

Rate(s) Structure

The rates of the tax (“base tax”) are:

  • 15% for equity participations
  • 15% for participations in profits attributed in the framework of an investment savings scheme which are the subject of a non-subordinated loan
  • 25% for participations in profits that are not chargeable at the 15% rate.


Where certain conditions in respect of a non-redemption period are not satisfied (in principle not less than two years and not more than five years), a supplementary tax is charged.


The rate of the supplementary tax is 23.29%.

Tax due date

Month of allocation.

Tax collector

Federal Public Service Finance.

Special features

Principles of the system

The participation scheme is to respect certain conditions, the most important of which are explained hereafter.

It shall be set up through a collective agreement or, where the enterprise has no union delegation, through an acknowledgement of approval established by the employer and approved by the employees. It shall provide a procedure allowing the collection of the employees' observations or remarks and, where necessary, a conciliation with the employer's proposals.

All the employees shall be allowed to participate in the scheme. The collective agreement or acknowledgment of approval may impose a condition as to the length of service, provided the latter does not exceed on year.

At the end of the accounting year, the total amount of the equity participation and participation in profits granted to the workers shall not exceed one of the following two limits: 10% of the gross total emoluments or 20% of the profit after taxation.

The participation scheme shall not be established in order to substitute or convert remunerations, bonuses, benefits or supplements stipulated in the collective or individual agreements.

The profit sharing scheme established by a «small company» such as defined in the Corporation Code, may take the form of an investment savings scheme, by virtue of which the benefits attributed to the employees by the company are put at the disposal of the company as a non-subordinated loan. The amounts lent bear interest, the rate of which can not be inferior to the interest borne by public sector bonds having the same duration as the loan granted to the company. The loan shall be paid back within a period that shall not be less than two years nor exceed five years. The company is obliged to assign the received amounts to fixed assets during the same period.

In principle, no employer social contributions or employee social contributions are chargeable in respect of the sums allocated by the company in the framework of the participation scheme.


Taxation system


The sums allocated by the company in the framework of the participation plan are liable to corporation tax as disallowed expenses. Neither are they considered a professional income nor a movable capital income. Half of the amount of CIT thus collected is transferred to the National Office of Social Security. No deduction of gifts, of participation exemption, for patent income, for corporate equity, of previous losses, or investment deduction can apply to the allocated amount considered as disallowed expenses.


Equity participation

  • As regards equity participations, the taxable amount is determined in function of the stock market price where listed shares are concerned and, where unlisted shares are concerned, the determined amount can neither be lower than the book value of the shares nor lower than its actual value, the latter being fixed by a company auditor or by a chartered accountant.
  • The equity participation is subject to a 15% levy in full discharge (1) insofar as the participation plan provides for a non-redemption period that can neither be inferior to 2 years nor longer than 5 years. Where the non-redemption period is not respected, a supplementary 23.29% tax is charged (2).



(1) This levy is a tax assimilated to income taxes.

(2) The rate of this tax was set in such a way that the tax levied would correspond to the global levy, including social security contributions, that would be payable in the case of cash remuneration.


Participation in the profits


The allocated amounts are first subject to employees' social contributions and the remainder is then subject to a 25% levy in full discharge.

Economic function

Environmental taxes

Tax revenue
ESA95 code d51ah

Annual tax revenue (millions)
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 7.50 EUR 0.00
2011 12.80 EUR 0.00
2010 8.80 EUR 0.00
2009 15.10 EUR 0.00
2008 20.30 EUR 0.01
2007 31.80 EUR 0.01
2006 30.80 EUR 0.01
2005 30.10 EUR 0.01
2004 16.90 EUR 0.01
2003 0.00 EUR 0.00
2002 0.00 EUR 0.00
2001 0.00 EUR 0.00