ISOC Declaration
Corporate tax
ISOC Declaration
Information on corporate income tax returns: FPS Finance website, source 2021
Is my company subject to corporation tax?
Yes, if your company:
is a company (legal entity) in legal terms, under Belgian or foreign law;
engages in profit-making activities or operations (in Belgium or abroad);
has its registered office or principal establishment in Belgium;
is not explicitly excluded from corporation tax;
is not explicitly subject to corporate income tax.
How is my business taxed?
- Taxable base
Your company is in principle taxable on the total amount of its profits, that is to say the net amount of its income, including its distributed profits.
Taxable profit is calculated as follows:
based on the accounting result, as shown in the annual accounts filed by your company;
by then applying tax adjustments;
by subsequently exempting or deducting certain amounts.
- Rate
The rate is 25% (from the 2021 tax year and for the taxable period beginning no earlier than January 1, 2020).
Certain sectors of activity (see Article 216, Belgian Income Tax Code 1992) benefit from reduced rates. Separate rates apply to certain transactions (see Articles 219 to 219 quater, Belgian Income Tax Code 1992).
- Exclusion
Companies engaged in certain specific categories of activity (e.g., non-profit organizations, education, personal assistance services) are exempt from corporate income tax (and may be subject to corporate income tax). See Articles 181 and 182 of the Belgian Income Tax Code 1992 (CIR92) for the exact conditions.
How often does my company need to file a corporate tax return?
Your company must file a corporate tax return once a year, namely after the close of the accounting year.
In some cases, a company is not required to file a return or must file several returns during a calendar year. This is the case:
during an extension or shortening of an accounting year
Upon the dissolution of a company, with or without liquidation, consequently:
of a merger;
of an operation similar to a merger or a split;
of a corporate law operation that is comparable to foreign law.
Advance payments
Payments
Information on corporate tax payments: FPS Finance website, source 2021
Tax advantages of corporate income tax return
Information on the tax advantages of filing an ISOC return: FPS Finance website, source 2021
Tax Shelter - audiovisual production
The "Tax shelter" is a tax incentive designed to encourage the production of audiovisual and cinematographic works.
It allows Belgian or foreign companies established in Belgium to invest in works intended for cinema or television and to obtain a tax advantage in return.
Tax Shelter - Performing Arts
For the purposes of applying the said tax shelter scheme, an eligible work is understood to mean an original stage production which is approved by the competent services of the Community concerned as a European stage work (or, where applicable, by the relevant body of the Federal State).
This means that the work created must be produced by one or more producers established in one or more Member States of the European Economic Area (EEA) or supervised and effectively controlled by one or more producers established in one or more EEA Member States.
Investment deduction
The investment deduction aims to encourage SMEs to make productive investments. The investment deduction reduces the amount of tax payable. The amount of the deduction is determined by the percentage of the investment.
Notional interest deduction
In force since January 1, 2006 (tax year 2007), the "notional interest deduction", also called "tax deduction for venture capital", is an innovative and stimulating measure in international tax law, allowing all companies subject to Belgian corporate tax to deduct from their taxable income a fictitious interest calculated on their equity (net assets).
Excerpts from articles provided for informational purposes, originating from external sources that may no longer be adequate.
ASCEND ACCOUNTANT disclaims all liability related to these items.