On 17 July 2025, the Chamber adopted a first set of tax measures. The other measures included in the Easter agreement are part of the draft law containing various provisions, which is currently under review at the Chamber. The main measures adopted are as follows:
From a corporate tax and and employer perspective:
- Participation exemption regime (so called ‘DRD – dividends received deduction’)
As already mentioned, the conditions of the participation exemption for a participation reaching 10% of the capital remain unchanged. However, for companies holding a participation which amounts to 2.5 mio EUR but less than 10%, an additional requirement is introduced to benefit from the participation exemption: the participation needs to qualify as a financial fixed asset, unless the investor is a small enterprise. This is applicable from tax assessment year 2026.
- Liquidation reserve and VVPRbis regime
The law provides for an alignment of both regimes with, for the liquidation reserve, a reduced waiting period from 5 to 3 years and a new rate at 6,5%. The regime will depend on the date of creation of the reserve and the date of distribution. In this respect, note that the law provides for the possibility of distributing reserves created before January 1, 2026, at a rate of 6.5% if they have been held for a period of 3 to 5 years (provided that all other legal requirements are also met). For the VVPRbis regime, the rate of 20% applicable to dividends allocated or distributed during the second financial year after the cash contribution (made on 31 December 2025 at the latest) will gradually phase out. In respect of other cash contributions, the rate of 15% will be applicable to dividends distributed or allocated during the third financial year following the contribution or later. The changes regarding the liquidation reserve will apply to dividends attributed or paid from the date of the publication of this law in the Moniteur Belge/Belgisch Staatsblad (hereafter “MB/BS”). Those related to the VVPRbis regime will apply ten days after the publication of the law in the MB/BS.
- Exit tax
This new tax introduces the concept of a “deemed dividend” (representing the latent capital gains) for shareholders when a company emigrates or restructures in a way that transfers assets abroad. Shareholders will be taxed on this deemed dividend as if they received an actual dividend, subject to applicable personal or corporate income tax rates. A tax credit mechanism will be available to prevent double taxation when these gains are eventually realised and distributed. The taxpayer will also be able to defer the tax payment. The company that transfers the assets must provide individual slips to shareholders. The new provisions will enter into force on the date of their publication in the MB/BS and apply to transactions referred to in art. 210, § 1er, 1er, 1°bis, or 4° ITC that take place from this date.
- Tax on securities account
A new anti-abuse measure aiming to prevent taxpayers from circumventing the tax through artificial conversions or transfers of financial instruments is introduced. The new anti-abuse measure will enter into force on the date of its publication in the MB/BS and the first reporting obligation must be fulfilled by 31 December 2025 at the latest.
- Carried Interest
The law introduces a new regime for individuals or related persons receiving carried interest from Belgian/foreign AIFs (alternative investment funds). The law defines the concept of “carried interest vehicle” and of “carried interest beneficiaries”. The income will be treated as investment income, taxed at a flat 25% rate (via withholding & income tax). The income that will be considered as “carried interest” can be the share of profits, dividends, capital gain, … after deduction of the acquisition value. The carried interest will not be reclassified as “professional income”. This measure will enter into force on the date of its publication in the MB/BS and will apply to income paid or attributed from this date. Carried interest vehicles being liquidated before the date of entry into force of the law will not be affected.
Tax procedure
The 10% tax increase for a first-time offense committed in good faith will be automatically waived. The good faith is presumed, except in case of an ex officio assessment (such as i.a. late tax return or absence of tax return). In case of an ex officio assessment, the taxpayer can still prove his good faith. This amendment is applicable for assessments enrolled as of the publication of this law in the MB/BS.
Indirect taxes & other taxes or tax measures
The reduced VAT rate on demolition-reconstruction projects of homes is reinstated and extended. Real estate developers will be able to apply the 6% VAT rate for demolition-reconstruction projects on the sale of homes. This applies to sales to private individuals living in the home (unique), and to investors renting the home to private individuals living in the home. In those cases, the surface of the home should not exceed 175m². This is a significant improvement compared to the old rules. These rules will enter into force the day of their publication in the MB/BS.
For further details or to assess the impact of these new measures, feel free to contact your usual PwC contact.
Author
More news about
- Accounting and Tax Compliance
- Belgian tax reform
- Corporate income tax
- Mergers & Acquisitions
- Personal income tax
- Reward
- Tax Accounting
