Residents in Belgium are taxed on their worldwide income, regardless of their nationality. Non-residents are taxed only on their Belgian sourced income.
Personal income tax is calculated from determining the tax base and assessing the tax due on that basis. A sliding scale is implemented to charge the correct tax amount for net taxable income. For 2015, the federal tax rates range from 0% to 50%.
Belgian Income Tax 2015
|Taxable income (€*)||Rate(%)||Tax on bracket (€)||Cumulative tax (€)|
With income year 2014 (assessment year 2015), the calculations over Belgian income tax 2015 contain two major components. Firstly, there is federal personal income tax followed by the regional personal income tax.
Belgian districts are now permitted to hold surcharges on ‘reduced federal personal income taxation’, while also being granted the ability to grant tax credits and reductions.
The tax liability may consequently diverge, even if only slightly at this point, depending on region and where the individual taxpayer resides on the 1st of January for the respective tax year.
Belgian residents will also need to pay municipal taxes at rates ranging between 0% and 9% of the total payable income. Non-Belgian–Residents will be obligated to pay a similar additional tax at a 7% fixed rate of the total income tax payable.
The rates of tax are the same for non-residents and resident taxpayers, but reductions or rebates are only granted to non-residents, as long as they earn a minimum of 75% of their worldwide proficient income within Belgian borders.
Belgian Income Tax 2015: Local Income Taxes
Residents of Belgium face communal taxes levied at rates ranging between 9.5% and 0% of the due income tax. For non-residents of Belgium a flat surcharge of 7% is obligatory. In some cases, communal taxes could be levied on exempted foreign sourced income.