Belgium: New exemption for foreign companies holding a "qualifying" participation


The Belgian tax reform laws were approved and published in the Official Gazette on 29 December 2017. The new fiscal measures contained in the law, including the repeal of the 1.6995 % rate, became effective on

1 January 2018


Since the beginning of 2016, a reduced withholding tax rate of 1.6995% on dividends has been granted to foreign investors fulfilling the eligibility criteria set out in Article 269/1 of the Belgian Income Tax Code. Please refer to announcements A16046 originally published on 24 May 2016 and A16126 from 22 August 2016 for the complete eligibility criteria.

With the new laws, the dividend received deduction (DRD) applied on qualifying dividends received by Belgian parent companies from subsidiaries, increased from 95% to 100%. Consequently, the withholding tax rate of 1.6995% is no longer applicable, and dividends received by non-resident parent companies are fully exempt.

Impact on customers

The Belgian Tax Authorities have not yet provided the procedure to apply the new tax exemption.

Customers will be informed as soon as further details become available.

Further information

For further information, please contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or your Relationship Officer.

1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.