|
Belgium - TAXES ACCOUNTING |
|
Corporate tax
Tax rate for resident companies |
In 2003, resident companies having legal identity and pursuing a gainful activity or business in Belgium are liable to company tax at the normal rate of 33.99% (including a 3% crisis surcharge), whether profits are distributed or not. Resident companies are taxed on their worldwide income while as nonresident companies are taxed only on their Belgium-source income. Under certain conditions, there are progressive reduced rates:
- from 0 to 25,000 euros: 24.98%
- from 25,000 to 90,000 euros: 31.93%
- from 90,000 to 322,500 euros: 35.54%
Certain items such as recoverable tax losses, deductions for investments, profits are exempt by treaty, Other items may increase the accounting profit such as certain provisions, excess depreciation, disallowed expenses, non-deductible taxes, exaggerated interest, 25% of automobile expenses (other than fuel & financing expenses), 50% of expenditure on restaurants & entertainment,
|
| |
|
Taxe rate on long-term capital gains |
The tax rate on long-term capital gains is 33.99%
|
| |
|
System governing groups of companies and dividends paid by subsidiaries to their parent companies |
The normal statutory withholding tax rate for dividends paid by Belgian companies is 25%, Under most of the Belgian treaties, this tax rate is reduced to 15%, subject to certain conditions like date of issue (dividends on certain shares issued after 1st Jan 1994, this reduced rate is applicable),
|
| |
|
Tax rate on branches |
Tax rate for subsidiaries is 33.99%; it is reduced in a range from 24.98 to 35.54% under certain conditions (for instance, the company must not be owned by more than 49% by other companies)
Branches are subjected to a non resident's specific tax but the deduction of certain expenses is refused due to the lack of autonomous legal personality of the branch.
|
Income tax
Fiscal year |
The financial year begins on 1st January and ends on 31st December of each year.
|
| |
|
Income tax rate |
2005 income tax rates (not including municipal tax and crisis surcharge):
0 to 6.730 EUR: 25%
from 6.730 to 9.580 EUR: 30%
from 9.580 to 15.960 EUR: 40%
from 15.960 to 29.250 EUR: 45%
over 29.250 EUR: 50%
|
| |
|
VAT rates
Standard rates |
The standard VAT rate 21%
|
| |
|
Reduced rates |
0%; 1%; 6%; 12%
|
|
Accounting
General accounting principles
Belgian accounting principles are promulgated by :
- The law of July 17, 1975
- Royal decrees
- The recommendations of the Accounting principles Committee.
Law reminds that rules and accounting principles have to give a fair view about the financial situation of the company.
The royal decrets determinate the form and the content of the annual publications.
|
Obligations and publications
All Belgian companies have to present to shareholders an annual account according to a standard form ; a complete plan for big companies and an abbreviated one for Small and Medium-Sized Companies.
This annual account must include : the balance sheet, the profit and loss account and the appendix.
The Brussels stockmarket allows corporates to publish their accounts by referring to the IASC (International Accounting Standards Committee) norms.
The Belgian corporates whose capital is foreign may also follow the IASC norms.
Certification and auditing
Annual accounts must be subjected by the administrators of Limited Companies (the managers for the Sprl) to the general assembly of the company for approval within the 6 months following the end of the previous accounting year. In the month following their approval, these accounts must be deposited in the National Bank of Belgium (Belgian law exempts the Small and Medium-Sized companies of this publication).
A Small and Medium-Sized company is defined by these 3 criteria:
- The workforce cannot exceed more than 250 persons,
- The turnover does not exceed 40 million euros,
- The total of assets does not exceed 27 million euros.
All big companies of capital have to control their annual accounts by a chatered accountant. Besides, in Small and Medium-Sized companies, each partner has the investigation and control powers of a chatered accountant.
Professionals and representative organizations
The Committee of accounting standards was established according to the law with members appointed by the executive power; the role is to develop the accounting doctrine and formulate the principles of regular accounting. The "Centrale des Bilans" is the organism which is in charge of publishing annual accounts of corporates. Its address is : 14 , Bd de Berlaimont - B 1000 Brussels
The experts must belong to the Institut des Experts Comptables et des Conseils Fiscaux / Het Instituut van de Accountants en de Belastingconsulenten
Institut des Experts Comptables et des conseils fiscaux
41, rue de Livourne B 1050 Brussels
Tel: (+32) (0) 2 543 74 90 Fax: (+32) (0) 2 543 74 90
E-mail: info@iec-iac.be
Het Instituut van de Accountants en de Belastingconsulenten
Livornostraat 41 B 1050 Brussels
Tel: (+32) (0) 2 543 74 90 Fax: (+32) (0) 2 543 74 90
E-mail: info@iec-iac.be
The corporate auditors are in charge of the audit of the enterprises:
Institut des Reviseurs d'Entreprises / Instituut der Bedrijfsrevisoren
Institut des Reviseurs d'Entreprises
22, avenue Marnix B 1 000 Brussels
Tel: (+32) (0) 2 543 74 90 Fax: (+32) (0) 2 543 74 90
Email: info@ibr-ire.be
Instituut der Bedrijfsrevisoren
Marnixlaan 22, B 1000 Brussel
Tel: (+32) (0) 2 543 74 90 Fax: (+32) (0) 2 543 74 90
Email: info@ibr-ire.be
|
Export Entreprises SA ©, All rights reserved
Last modified in
May 2003
|
|
