The Belgian Chamber of Representatives has released a policy note on 24 April 2025 detailing its tax reform plans for the upcoming year.

The key measures of the tax reform plan include:

Dividends received deduction rules

Enhancing the dividends received deduction (participation exemption) by requiring the investment to be a fixed financial asset, except for small businesses, while keeping the 10% minimum ownership and EUR 2.5 million investment conditions.

Capital gains tax for investment companies

Establishing a 5% tax on capital gains from share disposals by collective investment companies under the participation exemption.

Investment deductions, reserve policies, and limitation period changes

  • Eliminating the limit on carried-forward investment deductions and harmonising the rate to 40% for all small and large organisations.
  • The holding period for liquidation reserves will be reduced from 5 years to 3 years.
  • The withholding tax on new reserves will be increased from 5% to 6.5% starting in 2026, effectively raising the total tax rate from 13.64% to 15%.
  • The statute of limitation periods, currently set at 3, 4, 6, and 10 years, will be streamlined to just two periods: 3 years and 7 years.

VAT measures

  • Raising the VAT on coal from 12% to 21%;
  • Extending the 6% VAT for building demolition and reconstruction;
  • Increasing the VAT on fossil fuel boilers from 6% to 21%.