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Dividend payments are exempted for the first EUR 833.įoreign interest and dividends collected abroad by resident taxpayers must be declared in their annual tax return for the net amount (after the deduction of the foreign tax withheld at source), and the flat-rate tax is paid on assessment.
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Any interest exceeding this amount is subject to tax at a rate of 15%. Interest from ordinary savings accounts is exempted from taxation up to a limit of EUR 1,020 (income year 2024). Interest and dividends paid out and collected via a Belgian financial institution are, in principle, subject to a flat-rate tax of 30%. Income from capital includes interest, dividends, or other forms of investment. Tax brackets for income year 2023 are applicable to net taxable income after the deduction of social security charges and professional expenses. Tax rates are the same for resident and non-resident taxpayers, but some deductions or tax rebates are only granted to non-residents, provided that they earn at least 75% of their worldwide professional income in Belgium. The tax liability may therefore differ (although slightly at this stage) depending on the region in which the residence of the taxpayer is located on the 1st of January of the respective tax year. Pursuant to the 6th Reform, the Belgian regions are now entitled to retain surcharges on 'reduced federal personal income taxation', and also grant tax reductions/tax credits. The tax calculation contains two major components, notably the 'federal PIT' and the 'regional PIT'. For income year 2024, the federal tax rates range between nil and 50% ( see below). Taxation is charged on a sliding scale to successive portions of net taxable income. Personal income tax (PIT) is calculated by determining the tax base and assessing the tax due on that base. Residents of Belgium are taxable on their worldwide income, while non-residents are only taxable on Belgian-source income. Belgium taxes its residents on their worldwide income, irrespective of their nationality.