Foreign company operating in Belgium? Don’t forget to file the non-resident corporate income tax return!

Foreign companies carrying out certain activities on Belgian territory may be subject to Belgian non-resident corporate income tax.

There are four possibilities:

1. Taxable permanent establishment under the double taxation treaty: If in 2025 your company had a taxable permanent establishment in Belgium, the result of the permanent establishment in Belgium must be declared and is taxable. 
2. Income from Belgian property: If your company has earned income from immovable property located in Belgium (e.g. profit from rental or sale), it is taxable in Belgium and the income must be declared. 
3. Belgian permanent establishment under domestic law: If your company had a Belgian establishment under Belgian domestic law, it is not taxable in Belgium. However, it gives rise to a formal declaration obligation in the form of a “nil” declaration. This is a declaration without a taxable result. 
4. No or limited activities in Belgium: If your company did not carry out any activities or carried out only limited activities in Belgium (<30 days), we will inform the Belgian tax authorities and in principle no declaration needs to be submitted. 

We would like to emphasise that this is a mandatory annual formality and that this analysis is necessary to comply with Belgian tax obligations. In practice, we have also noticed that the Belgian tax authorities have been exercising increased vigilance in recent years. 

Failure to (timely) submit the declaration may result in tax proceedings being initiated against your company. The Belgian tax authorities may then impose an ex officio assessment, which may include additional penalties such as tax increases, administrative fines and a reversal of the burden of proof. 

Need an analysis or support with this filing obligation? Don’t hesitate to contact us!