Eligibility criteria for Non-Resident Companies eligible to 1.6995% pursuant to article 269/1 BITC92

The Belgian government approved a reduction in the dividend withholding tax rate to 1.6995% (i.e. 5% of the 33.99% corporate income tax rate) for foreign companies that satisfy certain eligibility criteria, with effect from 28 December 2015.

The special WHT rate does not apply to the extent that the non-resident shareholder could obtain credit or reimbursement of the Belgian WHT in its own jurisdiction of residence, based on local legislation effective at 31 December of the previous calendar year

The eligibility criteria to benefit from the reduction are as follows:

  • The company must be incorporated in a member state of the European Economic Area (EEA) or in a country that has signed a double tax treaty (DTT) with Belgium that includes provisions for the exchange of information;
  • The company is of a legal form listed in Annex I, Part A of the EU Parent/Subsidiary Directive (Council directive 2011/96/EU as amended by the Council directive 2014/86/EU) or as a legal form that is comparable with the legal forms included in such Annex;
  • On the date of payment or attribution of the dividend, the company must have participation of less than 10%, but with a minimum value of EUR 2.5 million;
  • The company commits to hold the shares for a continuous period of one year on the date of the dividend payment;

Council Directive 2011/96/EU

Council Directive 2014/86/EU

Nothing herein is intended to constitute financial, legal, or tax advice. Investors and custodians should verify eligibility with their (tax) advisers.