The following changes are being made to the conditions for the exemption for dividends known as the DRD or ‘dividend received deduction’ (DBI-aftrek/régime RDT):

• Shareholding condition: 10% (unchanged) or at least EUR 2.5 million (unchanged);

• If the 10% shareholding threshold is not met but the EUR 2.5 million limit is, the holding must be of the nature of a "Financial Fixed Asset" (hereinafter: FFA). This condition only applies if the shareholder is a "large company".

The change in the shareholding condition also affects the exemption from capital gains on shares, as for the purposes of this exemption, the conditions for application of the DRD deduction are referred to in full.

The new rules on the DRD deduction will apply from tax year 2026. The stricter condition for securities withholding tax does not apply until 29 July 2025. This scheme falls under category 1 as it was included in the Programme Law of 18 July 2025.

The dividend received deduction is currently treated as a deduction on the tax return, but in the future it will be treated as an exemption. It will be entered on the tax return as an increase in the initial amount of reserves.

This change could in principle result in the DRD exemption becoming automatically transferable to subsequent taxable periods. At present, the DRD deduction is not transferable for dividends originating from companies in countries outside the EEA unless an anti-discrimination provision has been included in the double tax treaty with the country in question. However, the possibility cannot be ruled out that future legislation will retain the existing restrictions on transferability in some other form, although this is not yet clear at present.

Furthermore, some expenses are disallowed for DRD deduction purposes: these are known as “contaminated” or “bad” disallowed expenses. Given that the deduction is to become an exemption, this restriction may lapse in the future. Again, it is possible that the existing restriction will be maintained in some other form. This scheme falls under category 2, with a “Preliminary draft law to improve the investment climate” currently under preparation within the office of the Finance Minister.

DRD Beveks – or regulated investment companies – benefit from a special tax regime which means these companies are only taxed on a limited basis.

Other advantages of a DRD Bevek are that they do not have to meet (1) the sustainability and (2) minimum participation conditions for the DRD deduction to apply. The valuation condition is deemed to be met if the DRD Bevek re-distributes at least 90% of its net income and if this income comes from "good shares".

Companies investing in a DRD Bevek can apply the DRD deduction for dividends received from the DRD Bevek and can benefit from the exemption for capital gains realised on the investment in the DRD Bevek. The DRD deduction and/or exemption of capital gains on shares only applies to the extent that the income and/or capital gains arise from DRD-eligible income.

The federal coalition agreement announced two measures to slightly reduce the tax benefit for companies investing in DRD Beveks: (1) the capital gain on exit from a DRD Bevek will be taxed at a rate of 5% (exit tax), insofar as the capital gain arises from DRD-eligible income; (2) the securities withholding tax on distributed dividends can only be offset against corporation tax if the receiving company pays the minimum managerial remuneration (currently: EUR 45,000, expected increase: EUR 50,000) in the year of receipt.

Companies investing in a DRD Bevek will therefore have to take this into account. Otherwise, the withheld securities withholding tax will no longer be an advance on their ultimate corporation tax, but will become an additional tax burden.

The ultimate treatment is now set out in the Law on Miscellaneous Provisions (category 1). The separate 5% assessment applies to capital gains realised on shares of DRD Beveks, real estate DRD Beveks, regulated real estate companies (REITs) and certain foreign companies. This charge only applies to the portion of the exempt capital gain. The condition that applies here is that the Dividend Received Deduction has actually been applied to the dividends in the past.

For dividends benefiting from the DRD deduction, the securities withholding tax can only be offset if the acquiring company provides the minimum managerial remuneration during the taxable period (see above). This obligation does not apply to recognised cooperative companies.

Finally, the provisions will apply from the 2026 tax year. Changes made to the financial year after 3 February 2025 are (rebuttably) presumed to be intended to avoid the application of the assessment and will therefore have no effect.

The coalition agreement announced that the conditions for applying the reduced rate of corporation tax would be changed. The reduced rate of corporation tax of 20% on the first EUR 100,000 of taxable income is subject to a number of conditions. One of these is that at least one company manager (natural person) must be awarded remuneration of EUR 45,000 (if the remuneration is less than EUR 45,000, it must be equal to or greater than the company’s taxable income).

It was announced that this minimum remuneration will be increased to EUR 50,000 and will be subject to annual indexation. In addition, only up to 20% of the company manager’s remuneration will now be allowed to consist of benefits in kind. Additional bonuses will still be allowed. It is not clear whether this maximum level of benefits in kind will only apply to the assessment of the minimum company director’s remuneration as a condition for applying the reduced rate of corporation tax rate, or whether its scope will be broader.

The proposed tightening of the condition for using the reduced rate of corporation tax fits into a broader context of combating the shifting of income to corporate form. This scheme falls under category 2 and is part of the draft law on the reform of personal income tax.

For assets acquired or created from 1 January 2025, a renewed framework for the application of the investment deduction will come into force. The previous restrictions, such as the limited annual utilisation and limited transferability of unused deductions, disappear completely.

Similarly, the prohibition on cumulating the increased thematic deduction with regional state aid is also removed. Also, the prohibition on cumulating the tax credit for research and development (hereinafter: R&D) and the investment deduction only applies to the technology deduction. In other words, it does not apply to the increased thematic deduction.

The deduction rates are also being adjusted: a basic deduction of 10% for small companies, doubled to 20% for digital investments (for small companies only), a one-off technology deduction of 13.5% or a 20.5% spread deduction for R&D based on the depreciation rate and from the 2027 tax year, an increased thematic deduction of 40% (for the 2026 tax year: 30% for large companies and 40% for small companies) for both small and large companies. The 30% specific deduction for ocean-going vessels is retained.

Administrative burdens are also being reduced: the regional attestation requirement for R&D has been removed and companies can obtain recognition as research centres. Belspo and FPS Finance are working on clarifications around the definition of R&D. Finally, the application deadline for attestations will be extended once until 30 June 2026 and a new web application will be developed to process applications.

This scheme falls under category 1 and is included in the Royal Decree of 28 July 2025.

The coalition agreement has announced changes to the group contribution scheme (i.e. the so-called tax consolidation):

• The group contribution scheme will no longer be limited to direct share holdings, but can also be used for indirect share holdings. This means that a holding company will not only be able to deduct the tax loss of a direct subsidiary, but also the tax losses of companies at a lower level in the group structure.
  
  
• New companies – those with which the required mutual connection has existed for less than five years – will no longer be excluded. It is not yet clear whether the minimum term of five years will be scrapped or retained in a less strict form.
  
  
• The DRD deduction could also be applied to profits arising from a group contribution.

Currently, the Law on Miscellaneous Provisions (category 1) states that the DRD deduction can be correctly applied in situations where a group contribution is used. More specifically, the DRD deduction for the year can be applied to the share of the total group contribution in excess of the loss that was determined before the group contribution was included in the taxable basis for the taxable period. 

In other words, the DRD deduction means that the result will be no different from if the dividends had been exempt from profits from the outset. That scheme will take effect from 9 January 2026.

Finally, the other reforms described above fall under category 2 (“Preliminary draft law to improve the investment climate”).

Form 270MLH, which since tax year 2024 has had to be added to the tax return in order for rental costs to qualify as deductible business expenses, will be replaced by an administratively simpler alternative. This alternative will take into account the information that the administration already has, in response to criticisms that the existing form 270 MLH has to be submitted in too many situations, such as for the rental of real estate (excluding VAT) where both tenant and landlord are companies.

To date, no news is available on a legislative initiative. We will update you as soon as this comes up for debate in parliament again.

• Abolition of the creation of further provisions for social liabilities

  The possibility of creating an additional, tax-exempt provision for social liabilities was scrapped on 30 September 2025. This had been introduced following the harmonisation of the status of blue- and white-collar workers and the increase in the cost of possible severance pay.

  That scheme falls under category 1 and is included in the Law on Miscellaneous Provisions of 18 December 2025.

   

• Abolition of the favourable capital gains tax treatment of company vehicles

  The system of temporary exemption of capital gains on vehicles used for paid passenger transport or freight transport is being discontinued. This exemption can no longer be applied for capital gains realised after 31 August 2025.

  This also concerns category 1 - see the Law on Miscellaneous Provisions of 18 December 2025.

   

   

• Accelerated depreciation

  Investments in research and development, defence and the energy transition will be depreciable at an accelerated rate of 40% in the year of purchase.

  SMEs will again be able to depreciate on a declining balance basis.

  This scheme falls under category 2, with a “Preliminary draft law to improve the investment climate” currently under preparation within the office of the Finance Minister.

   

• Temporary increase in the tax deduction for electric vans and trucks

  There will be a temporary increase in the deduction for electric vans and trucks. It is unclear whether the recently introduced investment deduction will become more attractive from a tax perspective or whether certain costs can be deducted from the taxable result at a higher rate.

  There has not yet been any news on a legislative initiative in this area. We will update you as soon as this comes up for debate in parliament again.

   

• Meal vouchers, eco-vouchers and culture vouchers

  From 1 January 2026 (via amendment 56-0963/27), the amounts of meal vouchers will be increased, as stipulated (category 1) in the law of 18 December 2025. The maximum amount per meal voucher increases from €8 to €10 per day worked and the maximum employer contribution increases from €6.91 to €8.91.
  
  The level of tax deductibility for employers is also being changed: the business expense you can deduct is doubled from €2 to €4 per voucher, provided you pay out the increased maximum amount. This change benefits both employees and employers, as employees receive a higher value for each meal voucher and employers benefit from an increased tax deduction.

  In addition, social consultations are currently under way on the possible abolition of eco-vouchers and culture vouchers. No final decision has been taken on this yet. We will let you know as soon as there is more clarity on this.

   

• Donations of goods to recognised institutions

  These will become tax-deductible in the future, as is already the case for cash donations.

  No news is yet available on a legislative initiative in this area. We will update you as soon as this comes up for debate in parliament again.

   

• Tax shelter for audiovisual productions and advance payments

  The coalition agreement states that the tax surcharge if insufficient advance payments are made will no longer be affected by the signing of a framework agreement in the context of a tax shelter for audiovisual productions. The exact scope of this measure is not yet clear.

  No news is yet available on a legislative initiative in this area. We will update you as soon as this comes up for debate in parliament again.

  The existing tax shelters for start-ups and growth companies will be merged and expanded. This scheme falls under category 2, with a “Preliminary draft law to improve the investment climate” currently being worked on within the office of the Finance Minister.

   

• Transfer pricing obligations

  The coalition agreement also states that the transfer pricing documentation, which demonstrates that related companies are applying correct pricing for their mutual transactions, will be simplified and limited to the essential elements. This simplification will mainly affect small and medium-sized enterprises.

  No news is yet available on a legislative initiative in this area. We will update you as soon as this comes up for debate in parliament again.

   

• Reform of the maximum tax-exempt formation of extra-statutory pensions

  The formation of an extra-statutory pension (group insurance, IPT, etc.) can only be tax-exempt if, among other things, the so-called "80% limit" is adhered to. Among other things, this limit takes into account the person’s career, all accumulated extra-statutory pensions, transferability of pension interest, etc.

  This rule will be reformed, but no further details are currently available. We will keep you informed when legislative initiatives come up for debate in parliament.

   

• Levy on excessive fringe benefits

  The federal government has included a new rule in the personal income tax reform bill (category 2) that is designed to discourage the granting of excessive fringe benefits to employees and company directors.

  Whenever an employer or company grants fringe benefits – such as company cars, cheap loans, free or cheap housing, stock options, etc. – exceeding 20% of total remuneration during the taxable period, then the proportion in excess of the 20% limit is considered excessive. A separate charge of 7.5% will be introduced on this excess portion.
  
  This measure is being introduced in the personal income tax system and affects employer/operators and employer/practitioners of liberal professions, for the excessive proportion of these benefits that are awarded to their employees.

  For corporation tax purposes it takes the form of a separate charge of 7.5% on companies on the excess portion of benefits they grant to their employees. If a small company awards excessive benefits to its business managers, no separate charge of 7.5% will be made. However, another important sanction is in place: the company will lose the right to the reduced rate of corporation tax.

  The assessment is conducted for each category - employees on the one hand and company managers on the other - and there is no possibility of offsetting between the two groups.

  The new rules apply from the 2027 tax year.