Belgium's Federal Public Service Finance published the Royal Decree of 24 July 2026 in the Official Gazette on 30 July 2026, amending Annex III to raise the additional-work hours threshold to 180 hours, increase the very-low-wage employment bonus component to 63%, and extend the withholding tax correction mechanism to lump-sum alimony paid to non-residents. 

RF Report

Belgium’s Federal Public Service Finance has published the Royal Decree of 24 July 2026, amending the rules governing the application of withholding tax in the Official Gazette on 30 July 2026. The decree introduces several important amendments to the rules for applying Annex III, particularly following the Law of 15 July 2026 reforming personal income tax.

The amendments concern:

  • Reduction for additional work: A general increase in the number of additional hours eligible for the withholding tax reduction to 180 hours across all sectors (No. 45.2 of Annex III).
  • Employment bonus reduction: The “very low wage” component of the tax employment bonus has been increased from 52.54% to 63% (No. 46.2.2 of Annex III).
  • Integration income (equivalent): Although integration income (equivalent) is now subject to taxation, no withholding tax is to be withheld from this income (No. 78.3.2 of Annex III).
  • Young athletes: The minimum age for the first remuneration bracket has been lowered from 16 to 15 years, and the reference date of 1 January of the tax year has been corrected in the relevant rules (Nos. 139 and 144.1 of Annex III).

In addition, the taxable portion of maintenance payments was reduced from 80% to 70% by the Law of 18 December 2025 containing various provisions. This change applies to maintenance payments made or awarded in 2025, provided that the taxable period in which they are received ends after 30 December 2025.

Alimony paid to non-residents is subject to withholding tax, and because that withholding is final, any overpayment normally can’t just be corrected later through an annual return. The 2025 rules taxed only 80% of the amount, but a gap remained for lump-sum payments: the Royal Decree of 14 February 2026 fixed the withholding rules for alimony paid in periodic instalments, leaving lump-sum payments still governed by the old rules.

The Royal Decree of 24 July 2026 closes that gap, extending the same fix to lump-sum alimony so recipients can get excess withholding refunded without delay.