Belgium is overhauling its tax system with a sweeping reform package gazetted on 1 June 2026 that raises levies on dividends, securities, insurance, and energy—hiking the withholding tax on dividends from 15% to 18%, while also tightening deductions for copyright income and wage tax exemptions.
Belgium has gazetted the Programme Law of 30 May 2026 on 1 June 2026, a comprehensive legislative act designed to implement diverse fiscal and administrative reforms.
This legislation introduces significant taxation adjustments, specifically targeting air travel, insurance, and banking sectors, while also modifying income tax rules for copyright revenue and dividends.
Withholding tax on liquidation reserve and SME dividends
The measures tighten taxation on dividends and liquidation reserves by increasing the standard withholding tax rate from 15% to 18% and introducing a reduced 9.8% rate for certain cases previously taxed at 6.5%.
It also adds an anti-abuse rule allowing dividends to be reclassified as professional income if the recipient becomes a director in a similar business within three years, unless a non-tax motive is demonstrated. Most changes apply to dividends distributed from the tenth day after the law’s publication.
Flight tax (Tax on boarding an aircraft)
The law schedules incremental increases to the tax rates on aircraft boarding by amending the Code of Miscellaneous Duties and Taxes. The flat fee for certain boarding operations is set to increase from EUR 10 to EUR 10.50 on 1 January 2028, and further to EUR 11 on 1 January 2029. Another specific rate referred to in Article 162 will double from EUR 5 to EUR 10 starting 1 January 2027.
Annual securities account tax
The tax rate for the annual tax on securities accounts is being doubled, rising from 0.15% to 0.3%. This new rate applies to reference periods ending on or after the date of the law’s publication in the Belgian Official Gazette.
Annual tax on credit institutions
The law revises the calculation method and rates for the annual tax on credit institutions. The existing rates of 0.15205% and 0.20204% are increased to 0.19286% and 0.25626%, respectively. It also introduces new rules allowing debts owed to the European Investment Bank and certain central counterparties to be deducted from the taxable base. The changes will apply from the 2027 tax year.
Insurance premium tax
The annual tax rate on insurance operations is increased from 9.25% to 9.6%. This adjustment applies to premiums due from the first day of the month following the law’s publication (which would be 1 July 2026) and no earlier than 15 May 2026.
Limitation of flat-rate deductible costs for copyright income
The law restricts the application of the standard flat-rate expense deduction for income derived from copyright and related rights. The deduction is now only available to taxpayers who hold a certificate of artistic work from the Commission for Artistic Work at the time the income is paid or allocated. This measure is retroactive, taking effect from 1 January 2026, and applies to all income paid or allocated from that date.
Correction factor for wage tax exemptions
A “correction factor” is introduced to limit the portion of withholding tax (wage tax) that employers may retain instead of remitting to the Treasury. The applicable retention rates are set at 97% in 2027, 93.35% in 2028, and 95.9% from 2029 onwards.
The corresponding exemption amounts that employers can claim are proportionally reduced across several schemes, including research and development, maritime employment, and night or shift work.
The measure enters into force on 1 January 2027.
Excise duty rates for energy and fuel
The law overhauls the excise duty structure for several energy products, with most changes taking effect on 1 August 2026.
- Petrol and diesel: Incremental increases in “Special Excise Duty” are scheduled for 1 January 2027, for both leaded and unleaded petrol, as well as diesel used as fuel.
- Natural gas: For non-professional (residential) customers, the special excise duty for the primary consumption bracket (0-12 MWh) increases from EUR 10.31 per MWh in 2026 to EUR 13.60 per MWh by 2029.
- Electricity: Conversely, for non-professional “other” customers (non-protected), the special excise duty is scheduled to decrease annually from EUR 46 per MWh in 2026 down to EUR 38 per MWh in 2029.
