Belgian personal income tax reform adopted
During the night of 9-10 July, the Chamber of Representatives adopted the draft law reforming the personal income tax regime. The law introduces changes that are favourable to workers and entrepreneurs, whether acting as self‑employed individuals or through management companies, alongside a series of reductions and limitations for other taxpayers. It also contains provisions that will demand attention from
New Program Law introduces cap on wage withholding tax exemptions and tightens night and shift work definitions
The federal government’s new Program Law, voted on 28/05/2026, introduces significant changes to the wage withholding tax (WHT) exemption regime. As the government seeks to close the budgetary gap and consolidate public finances, the WHT exemptions — long regarded as a cornerstone of Belgian employer incentives — are being curtailed. Two measures stand out: a
Updated Belgian inpatriate tax regime — New circular letter greenlights retroactive adjustments to employment contracts
On 1 April 2026, the Belgian tax authorities (BTA) published Circular letter 2026/C/51, providing commentary on the amendments made by the Law of 18 December 2025 to the special tax regime for inpatriate taxpayers (BBIB) and for inpatriate researchers (BBIO). The changes apply to remuneration paid or granted as from 1 January 2025. Without providing an overly extensive explanation of the special
Benefits in Kind – New draft bill limits lumps-sum benefits in kind to 20% of gross wage
On 17 December 2025 (officially published on the Chamber’s website on 13 January 2026), the Belgian Government introduced a new draft bill to reform personal income tax. As part of these measures, the government aims to reduce the pressure on gross wages for employees and company directors by limiting the conversion of gross wages into
Flanders advances pay‑transparency transposition for the public sector
The Flemish Government approved a draft decree to partially implement the EU Pay Transparency Directive (EU 2023/970) for the Flemish public sector, taking effect on 7 June 2026. Scope Applies to Flemish services, local authorities, and educational institutions and their staff (public sector under Flemish jurisdiction). Right to information Employees may request written information on
Belgium’s comprehensive capital gains tax changes: key updates and implications starting January 2026
As indicated in our Newsflash of July 8, 2025, capital gains on financial assets will become taxable as of January 1,2026. We have summed up and updated below how this capital gain tax (CGT) will work based on the latest version available. Kindly be advised that the draft legislation is expected to be published on
Belgium’s Expat Regime – Key takeaways from the new legislation
Last Friday, the parliament approved various important tax measures, including the changes to the special tax regime for inbound employees and researchers. While the text is yet to be published in the Official Gazette, it is essential to highlight that these changes will take effect retroactively from 1 January 2025 (except for social security purposes).
New draft bill with respect to the taxation of capital gains realised upon the disposal of financial assets
The 10% capital gain tax As of January 1, 2026, as per the new (draft) article 90, 9° c) of the ITC 92, capital gains realised upon the disposal of financial assets -beyond the scope of a professional activity but within the scope of the normal management of the private estate – will be taxed
