Significant increase of surcharge in case of no or insufficient tax prepayments

News

21-03-2024

1 minute read

During the taxable period, companies in Belgium have the possibility to make prepayments on the corporate income tax due. Although a company is not obliged to make prepayments, the corporate income tax due will be increased with a non-deductible surcharge if no, or insufficient, prepayments are made. The rate to calculate this surcharge has increased significantly for 2024.

For assessment year 2025 (income year 2024), the surcharge is calculated at a rate of 9% (previously 6.75%), resulting in an increase of the corporate income tax rate from 25% to 27.25% in case no prepayments have been made.

The advance tax payments can be made in quarterly instalments entitling the company to a credit, which can be offset against the surcharge, and, if need be, can be repaid.

These payments should be made no later than the 10^th day of the fourth, seventh and tenth month of the financial year and the 20^th day of the last month of the financial year. Accordingly, the respective credits linked to the due dates to make an advance tax payment for financial year ending on 31 December 2024 are as follows:

12% for payments received by the Belgian tax authorities no later than 10 April 2024;
10% for payments received by the Belgian tax authorities no later than 10 July 2024;
8% for payments received by the Belgian tax authorities no later than 10 October 2024;
6% for payments received by the Belgian tax authorities no later than 20 December 2024.

Considering the significant increase of the surcharge in case of no or insufficient prepayments, it is recommended to make sufficient prepayments and – if possible – to make more prepayments at the beginning of the year.