Assessment and audit periods are being amended
| Before 1 January 2026 | From 1 January 2026 | |
|---|---|---|
|
Return submitted on time
|
3 years
|
3 years
|
|
Return not submitted or submitted late
|
4 years
|
3 years
|
|
Semi-complex returns
|
6 years
|
4 years
|
|
Complex returns
|
10 years
|
4 years
|
|
Fraud
|
10 years
|
7 years
|
The shortening of the tax audit and assessment periods and the 7-year audit period in case of fraud will be given retroactive effect from assessment year 2023 through the Law of 18 December 2025 on Miscellaneous Provisions (category 1).
Retention periods for tax documents
Given the abolition of the 10-year period for fraud as mentioned above and its replacement with a 7-year period, the retention period for income taxes is also being adjusted.
This is the period during which the books and records ‘from which the amount of taxable income can be determined’ must be kept for perusal by the authorities. Until now, these records had to be retained ‘until the end of the tenth year or financial year following the taxable period’. This period will now be reduced to seven years (category 1) through the law of 18 December 2025 and will apply from the assessment year 2023.
Modification of the policy on tax penalties
In case of a tax correction with the imposition of a 10% penalty, it is not possible to offset previous losses and other deductions that have either been carried forward or relate to the taxable period. In other words, such tax corrections give rise to an actual tax liability (minimum taxable basis).
For tax assessments registered from 29 July 2025 onwards (category 1), the policy on tax penalties has been amended so that a first good faith offence will no longer automatically trigger a 10% tax increase. This amendment is in line with a ruling of the Constitutional Court on 21 November 2024.
Unless proven to the contrary, good faith is presumed unless the assessment was made according to the ex officio assessment procedure. The measure will come into force through the Programme Law of 18 July 2025.
In recent case law (Ghent Court of Appeal of 18 November 2025), this new rule applies not only to the future but also to the past. They apply the principle that a more lenient criminal penalty always has retroactive effect.
Re-establishment of a permanent tax regularisation system
The Programme Law of 18 July 2025 (category 1) allows taxpayers to regularise their federal tax situation through the Regularisations Contact Point of the Federal Public Service Finance from 29 July 2025. This procedure offers both fiscal and criminal immunity.
The scheme applies not only to natural persons, but also to:
- companies that are not subject to corporation tax;
- legal entities that are subject to the legal entities tax;
- civil companies and unincorporated associations.
The regularised amounts are taxed at the normal rate that was applicable in the taxable period in which they were obtained, plus 30 percentage points (or 45% on time-barred lump sums).
The same principle applies to VAT transactions: the applicable VAT rate at the time of the transaction, also increased by 30 percentage points, except when these transactions have already been regularised as professional income.
Miscellaneous
Tax havens
Certain payments to tax havens already have to be reported in an addendum to the corporation tax return.
From the 2026 tax year (for financial years ending from 31 December 2025) the legislature will announce a list of tax havens each year and this will apply during the coming calendar year. In contrast to what often occurs at present, this list will not be changed during the year.
No news is yet available regarding a legislative initiative on this. We will update you as soon as this comes up for debate in parliament again.
Unlawfully obtained evidence
Case law from the Court of Cassation and other courts has developed what is known as the “Antigone doctrine”. This states that evidence obtained illegally by the tax authorities (e.g. in violation of procedural rules) may still be used under certain conditions. A legal framework will be provided for these principles (category 2).
The principle of trust
Based on the principle of trust, the legislation will stipulate that no penalty can be imposed on something that has been checked and accepted by the tax authorities in the past (unless the law has changed – category 2).
Modification of the tax penalty policy
The tax penalty policy is to be modified so that a tax surcharge of 10% is no longer automatically imposed for a first violation in good faith. This is in line with a recent Constitutional Court ruling.
In the absence of evidence to the contrary, there will be a presumption of good faith unless the ex officio assessment procedure has been used. The measure will enter into force for assessments registered from 1 July 2025 onwards. A spontaneous correction may be deemed to constitute a violation in good faith.
In the event of a tax correction with the application of a surcharge, it is not possible to offset previous losses and other deductible items that have either been carried forward or that relate to the taxable period. In other words, such tax corrections give rise to an actual tax liability (minimum taxable amount).
In view of the modification of the tax penalty policy as described above, it is expected that this actual tax liability will be less applicable.
In addition, the loss for the taxable period will always remain deductible, even from an additional taxable amount resulting from a tax audit.
- Tax havens
Certain payments to tax havens already have to be reported in an addendum to the corporate income tax return.
The legislators will publish a list of tax havens every year for the coming calendar year. By contrast with what is often the case today, this list will not be changed during the same year.
- Unlawfully obtained evidence
Case law from the Court of Cassation and other courts has developed what is known as the ‘Antigone doctrine’. This states that evidence obtained illegally by the tax authorities (e.g. in violation of procedural rules) may still be used under certain conditions. A legal framework will be provided for these principles.
- The principle of trust
Based on the principle of trust, legislation will stipulate that no penalty may be imposed on something that has been checked and accepted by the tax authorities in the past (provided that the law has not changed).