Sun, sea and Programme Law: a summer of fiscal tightening, reliefs and revival
This summer, the federal legislator treated us to a fiscal cocktail of tightening, reliefs and a touch of revival. We give you a taste of the most important elements of the Programme Law of 18 July 2025.
Carried interest
For years, there was uncertainty surrounding the tax treatment of carried interest. There was controversy over whether such income qualified as a movable-, professional- or a miscellaneous income. The Programme Law settles this debate once and for all. When a natural person receives a disproportionate return directly (for example, a fund manager who invests only 1% but receives 20% of the profit), this will henceforth be unequivocally considered as income from movable property . The benefit in question will be taxed at a separate rate of 25%, without additional municipal surcharges or social security contributions. This applies to awards or payments made on or after 29 July 2025.
Exit tax
Until now, in the case of cross-border seat transfers or restructurings, only the company level was taxed via a notional liquidation. In concrete terms, this meant that when the company left Belgium, it was deemed to have distributed its exempt reserves and unrealised capital gains, which were then subject to corporation tax.
The shareholders were not affected by this. The Programme Law now introduces a levy at their level as well. In the case of cross-border transfers of registered offices or restructurings, shareholders are deemed to receive a deemed liquidation dividend, which is subject to a withholding tax of 30%. This new rule applies to all transactions from 29 July 2025 onwards.
Liquidation reserve and VVPR-bis regime
The Programme Law aims to harmonise the regimes relating to the liquidation reserve and VVPR-bis. For the VVPR-bis system, the 20% rate will be phased out after two years, so that only the 15% rate will remain for dividends paid out three years after the capital contribution.
Furthermore, the waiting period and the rate for liquidation reserves will be reformed:
DBI deduction
In principle, the DBI system is only accessible for dividends from participations of at least 10% or with an acquisition value of 2.5 million EUR. The Programme Law tightens up this system. If the holding only reaches the threshold of 2.5 million EUR but does not represent a 10% participation, it must now be in the form of financial fixed assets. It must therefore be a long-term strategic participation and not merely a short-term investment. This tightening will apply from the 2026 tax year.
Abolition of tax increases in cases of good faith
The Programme Law stipulates that in the event of a first mistake made in good faith, no tax increase will be applied. The legislator starts from a presumption of good faith, whereby it is up to the tax authorities to prove the contrary.
However, in the event of a second offence within four years, this presumption of good faith will lapse and a 20% tax increase will follow.
This amendment entered into force on 29 July 2025.
Reintroduction of permanent tax regularisation system
After the end of the fourth regularisation round at the end of 2023, it was no longer possible to regularise undeclared income or capital. The Programme Law now provides for a permanent system that has been in force since 7 August 2025:
Conclusion
The recent reforms combine stricter tax measures with some mitigating elements and provide a permanent framework for regularisation. It is advisable to review your tax position in good time in the light of these changes.
Sesil Velieva and Evert Moonen
De Langhe Attorneys
