Equities - rates, eligibility, availability of relief etc. - Belgium

03.01.2017

Withholding Tax

Standard rate of withholding tax:30%Holding requirements / restrictions:No

As of 1 January 2017, the standard rate of withholding tax on dividend payments made on Belgian equities deposited with Euroclear Belgium (CIK SA/NV) is 30%. From 1 January 2016 to 31 December 2016 the standard withholding tax rate on dividend payments was 27%. From 1 January 2013 to 31 December 2015 the standard withholding tax rate on dividend payments was 25%.

Eligible beneficial owners are, upon submission of the required certification, entitled to relief at source or a quick/standard refund depending on their status.

Availability of relief

Click on the image for a larger view of the diagram showing the availability of relief at source and/or reclaim of withholding tax on income from Belgian equities deposited with Euroclear Belgium (CIK SA/NV).

Eligible beneficial ownersRelief at SourceQuick RefundStandard Refund
Residents of Double Taxation Treaty (DTT) countriesNoYesYes
Supranational or international organisationsYesYesYes
Non-resident pension fundsYesYesYes
Foreign companies holding “qualifying” participationYesYesYes

For supranational or international organisations , non-resident pension funds and foreign companies holding “qualifying” participation exemption at source from withholding tax or reduced withholding tax rate on dividends from Belgian equities is applied, upon submission of the requested documentation to Clearstream Banking, automatically on the entire customer entitlement for all dividend payments. No further action is required from customers in order to receive gross payments.

For residents of DTT countries, relief at source from withholding tax on dividends from Belgian equities is not available in the Belgian market.

A quick refund is available for all eligible beneficial owners, provided that the appropriate documentation is submitted to Clearstream Banking.

A standard refund is available if a quick refund has not been obtained by an eligible beneficial owner. The customer can reclaim withholding tax on behalf of the beneficial owner through Clearstream Banking by submitting the appropriate documentation.