On 22 December 2017, the Belgian Parliament voted a Law which reduces Belgian corporate tax rates with effect from 1 January 2018. The law is the first part of a Company Tax Reform which aims inter alia to progressively reduce corporate income tax rates.

With effect from 1 January 2018, the standard corporate income tax rate is reduced from 33,99% to 29,44%. According to the political agreement between the political parties in power a further reduction to 25%, which still has to be voted, is expected in 2020 (see table below).

Also with effect from 1 January 2018, small companies, as defined in the Law, now benefit from reduced rates of corporate income tax (see table below). As with the standard rate, a further reduction for taxable income in excess of € 100.000 is expected in 2020.

By Sébastien Popijn