Tax Benefits for SMEs in Belgium in 2026

What Is an SME for Tax Purposes?

In Belgium, a company is considered a "small company" under Article 1:24 of the CCA if it does not exceed more than one of the following criteria:

• Turnover: €9,000,000 (excluding VAT)
• Balance sheet total: €4,500,000
• Average workforce: 50 employees

These criteria must be assessed on a consolidated basis if the company is part of a group.

Main Tax Benefits

1. Reduced Corporate Tax Rate

SMEs benefit from a reduced rate of 20% on the first €100,000 of taxable profit (instead of the standard 25% rate).

Conditions:

• Be a small company under the CCA
• Pay a minimum remuneration of at least €45,000 to at least one director (or at least equal to taxable profit if lower than €45,000)
• Not be an investment company
• Not hold own shares exceeding 50% of equity in value

Tax savings: up to €5,000 per year (5% x €100,000)

2. Increased Investment Deduction

SMEs benefit from an increased investment deduction for productive investments:

3. Liquidation Reserve

SMEs can set up a liquidation reserve (Article 184quater ITC) by paying a separate levy of 10%. This reserve can then be distributed under favorable tax conditions:

• Upon liquidation: no additional withholding tax
• After 5 years: reduced withholding tax of 5% (instead of 30%)
• Before 5 years: withholding tax of 20%

4. Tax Shelter for Startups and Scale-ups

Individual investors who invest in starting SMEs (< 4 years) or growing SMEs (< 10 years) benefit from a tax reduction:

• Micro-enterprises: reduction of 45% of the invested amount
• Small enterprises: reduction of 30% of the invested amount
• Maximum amount: €100,000 per taxable period

5. Capital Gains Exemption on Shares

SMEs benefiting from the reduced rate enjoy a full exemption on capital gains realized on shares, subject to the taxation condition at the subsidiary level.

6. Deduction of Start-up Costs

Formation and initial establishment costs are fully deductible in the year they are incurred (no depreciation obligation).

Other Favorable Measures for SMEs

• Partial exemption from payment of withholding tax for starting SMEs
• Increased R&D tax credit for SMEs
• Notional interest deduction rate increased by 0.5%
• Unlimited loss carry-forward in time
• Cadastral income exemption for assets used in professional activity

Conditions to Meet

To benefit from all these advantages, ensure you:

Conclusion

Are you an SME director looking to optimize your taxation? LegalBelgique helps you identify and implement all the tax benefits your company is entitled to. Contact our experts for a personalized analysis.