Corporate Taxation in Belgium
Belgium's corporate taxation system has been revised in recent years and is very much in line with the country's reputation as one of Europe's favorite holding company jurisdictions. Belgium has an extensive network of treaties with over 80 countries designed to avoid double taxation.
Notional Interest Deduction - a Unique Innovation
All companies subject to Belgian corporate tax are allowed to deduct a percentage of the interest on their adjusted equity from their taxable income, in order to mitigate the imbalance between equity and debt financing (notional interest deduction, or NID). NID does not discriminate between companies, is fully compliant with existing Belgian and EU laws, and assures legal certainty for investors.
The Belgium Hong-Kong Tax Treaty
The Belgium Hong-Kong tax treaty is the first OECD tax treaty entered into by Hong Kong, as well as the first Double Tax Treaty entered into with Hong Kong by any EU state. It creates unique opportunities for both Asia-EU and EU-Asia investments, with Belgium acting as a key financial portal.
Key Advantages of Belgium's Corporate Tax Environment
- One of Europe's favorite jurisdictions for holdings and headquarters
- Attractive corporate tax and tax-ruling system
- Notional Interest Deduction for companies
- Tax treaties with over 80 countries, including Hong Kong
- Interest payments are 100% tax-deductible
- No taxation on capital gains on shares
The specialized services of Henley & Partners are a resource and complement to other consulting and law firms. Our Antwerp office is at your disposal to assist your company to obtain specialist advice on how to apply the unique Belgian tax advantages and select a company structure adapted to your business sector and international interests.