Withholding tax: SPF Finances website source 2021

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What is the withholding tax?
Income from capital and movable property (dividends, interest, royalties, copyright, etc.), as well as certain miscellaneous income of a movable nature, constitute taxable income in Belgium.
The withholding tax normally withheld from this income is an advance on the tax relating to this income. In general, it is withheld at source and must be paid spontaneously to the FPS Finance by those who allocated the taxable income or by certain financial intermediaries. The withholding tax is however due, in certain cases, by the recipient of the income.
In most cases, the withholding tax retained is “final”. This means that the taxpayer no longer has to declare in his personal income tax return the income on which a withholding tax has been withheld. If the income from movable property has not been subject to the withholding tax, it must be declared in the personal income tax return.

What is the withholding tax rate?
Since January 1, 2017, the base rate of withholding tax has been 30% of income. Depending on the type of income, reduced rates apply.

Who must declare and pay the withholding tax?
As a rule, the income debtor
As a general rule, the debtor of income from movable property must declare, withhold and pay the withholding tax to the State when he attributes or pays this income to the beneficiary.
Debtors can be:
  companies that pay dividends on stocks
  employers who pay employees a profit sharing
  banks that pay interest on a term deposit
  ...
The beneficiary of the income therefore receives a net amount, ie the income less the withholding tax withheld.
Example
Mr. Dupont, a Belgian resident who is a natural person, holds shares in a Belgian company. The latter grants him a gross dividend of 100 euros.
The rate of withholding tax on dividends is 30%. The Belgian company therefore withholds 30 euros (100 euros x 30%) in favor of the State and pays a net dividend of 70 euros (100 euros - 30 euros) to Mr. Dupont.
The Belgian company completes a 273A DIV declaration and pays the withholding tax of 30 euros to the State.
In some cases: the recipient of the income
This concerns in particular certain income received by legal entities subject to corporate income tax.

When to declare and pay the withholding tax?
You must declare and pay the withholding tax within 15 days after the date of allocation or payment of taxable income. By respecting this date, you avoid late interest and penalties (tax increases and / or fines).
So do not wait until the last day to submit your declaration or make your payment.

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