ISOC statement
Corporate tax
ISOC statement
Information on the ISOC declaration: SPF Finances website source 2021
Is my business subject to corporation tax?
Yes, if your business:
is a company (legal person) from a legal standpoint, under Belgian or foreign law;
engages in profit-making operations or operations (in Belgium or abroad);
has its registered office or main establishment in Belgium;
is not explicitly excluded from corporation tax;
is not explicitly subject to corporate income tax.
How is my business taxed?
- Tax base
In principle, your business is taxable on the total amount of its profits, i.e. the net amount of its income, including its distributed profits.
Taxable profit is calculated:
from the accounting result, as shown in the annual accounts filed by your company;
then applying tax corrections;
by exempting or subsequently deducting certain sums.
- Rate
The rate is 25% (from tax year 2021 and for the taxable period starting no earlier than January 1, 2020).
Certain sectors of activity (see article 216, CIR 92) benefit from reduced rates. Separate rates are applicable on certain transactions (see Articles 219 to 219 quater, CIR 92).
- Exclusion
Companies carrying out certain specific categories of activity (for example associative sector, education, assistance to individuals ...) are excluded from corporation tax (and may be subject to corporate income tax). See articles 181 and 182 CIR92 for the exact conditions.
How often does my business have to file a corporate tax return?
Your company has to file a corporation tax return once a year, i.e. after the end of the accounting year.
In some cases, a company does not have to submit a declaration or has to submit several declarations during a calendar year. It's the case :
during an extension or shortening of an accounting year
upon the dissolution of a company, with or without liquidation, as a result:
a merger;
an operation comparable to a merger or a demerger;
a corporate law transaction comparable to foreign law.
Advance payments
Payments
Information on corporate tax payments: SPF Finances website source 2021
Tax advantages ISOC declaration
Information on the tax advantages of the ISOC declaration: SPF Finances website source 2021
Tax Shelter - audiovisual production
The “Tax shelter” is a tax incentive intended to encourage the production of audiovisual and cinematographic works.
It allows Belgian or foreign companies established in Belgium to invest in works intended for cinema or television and to obtain a tax advantage in return.
Tax Shelter - performing arts
For the application of the said tax shelter regime, by eligible work is meant an original scenic production which is approved by the competent services of the Community concerned as a European scenic work (or, where applicable, by the relevant body of the State federal).
This means that the created work must be produced by one or more producers established in one or more member states of the European Economic Area (EEA) or supervised and effectively controlled by one or more producers established in one or more member states of the EEA. .
Investment deduction
The investment deduction aims to encourage SMEs to make productive investments. The investment deduction reduces the amount on which tax must be paid. The amount of the deduction is determined by the percentage of the investment.
Notional interest deduction
In force since January 1, 2006 (2007 tax year), the "notional interest deduction", also called "tax deduction for risk capital" is an innovative and stimulating measure in terms of international tax law, allowing all companies subject to Belgian corporation tax, to deduct from their taxable income a fictitious interest calculated on their own funds (net assets).
Extracts of articles given for information, from external sources which may no longer be adequate.
ASCEND ACCOUNTANT declines any responsibility related to these articles.