Operating in Belgium as a foreign company? 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. either your company has/had a taxable permanent establishment in Belgium during 2024 on the basis of the double taxation treaty: in that case, the taxable result of the permanent establishment in Belgium must be declared;
2. or you have earned income from immovable property in Belgium during 2024, i.e. rental or sales proceeds: in that case, your company is taxable in Belgium. The taxable result must be declared in Belgium;
3. or your company has/had a Belgian establishment during 2024 based on Belgian internal law: in that case, your company is not taxable in Belgium, but there is a (nil) declaration obligation based on Belgian internal law. This is a declaration without a taxable result;
4. or your company did not carry out any activities or carried out only limited activities  in Belgium during 2024 (<30 days): in that case, we will inform the Belgian tax authorities and no declaration needs to be submitted.

In practice, we have also observed that the Belgian tax authorities have shown increased vigilance in recent years.

Failure to submit the tax return may lead to a tax procedure being initiated against your company. In such cases, the Belgian tax administration can issue an ex officio assessment, which may be accompanied by additional sanctions such as a tax increase of at least 10%, administrative fines, and more. In these situations, the burden of proof is also reversed.

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