Belgium’s parliament has approved new legislation that updates the procedures for reclaiming withholding tax and increases the annual tax rates for credit institutions.
Belgium’s parliament passed legislation on 18 December 2025, proposed by multiple Members of Parliament, to introduce changes to the refund of withholding tax and to raise the tax on credit institutions.
The legislation aims to update the 1992 Income Tax Code, specifically regarding procedures for reclaiming certain withholding taxes. Additionally, the bill introduces formal adjustments to the Code of Miscellaneous Duties and Taxes concerning the annual tax on credit institutions.
Withholding tax
The bill proposes amendments to Articles 368 and 368/1 of the 1992 Income Tax Code, explicitly addressing the procedure for claiming a refund of non-credited withholding tax.
The bill stipulates that if a taxpayer is not adequately informed in a tax assessment of unjustified wage or withholding taxes on interest, dividends, or royalties, refunds must be claimed through an official appeal within five years from January 1 of the payment year. For employers entitled to partial exemptions, such as R&D incentives, the appeal period is three years (five years in case of natural disasters).
The bill takes effect immediately upon publication in the Official Gazette.
Annual tax on banks
The bill also modifies the Code of Miscellaneous Duties and Taxes with respect to the annual tax on banks (credit institutions).
Effective 30 December 2025, the annual tax rates for credit institutions will increase. The adjustment applies to both tiers of the taxable base, with the EUR 50 billion threshold remaining for the higher rate.
| Taxable base | Current rate | New rate (as of 30 Dec 2025) |
| Up to EUR 50 Billion | 0.13% | 0.15% |
| Above EUR 50 Billion | 0.18% | 0.20% |
