Can you claim taxes as business expenses in Belgium?

Are your taxes tax-deductible in Belgium? The answer isn’t as straightforward as you might think. In general, taxes are not considered deductible expenses, but there are exceptions.

Which taxes are not tax-deductible?

Most taxes are not considered business expenses. These include:

• Personal income tax (including advance payments)
• Corporation tax (including advance payments)
• Tax prepayments
• VAT you pass on to the tax authorities

⚠️ Important: Fines and interest on late tax payments are also not deductible.

Why aren’t taxes considered business expenses?

Taxes like personal income tax or corporation tax aren’t a means of generating income—they’re a consequence of it.

They’re only calculated after your profit has been determined. That’s why the tax authorities don’t consider them to be business expenses.

Social contributions are deductible

Social contributions (sociale bijdragen/cotisations sociales) are the exception to the rule. As a self-employed person, you pay them quarterly based on your net professional income.

These contributions are tax-deductible because they’re a requirement for being able to work as a self-employed professional.

Are municipal and provincial taxes tax-deductible?

As an individual, you pay a municipal tax calculated as a percentage of your personal income tax. It’s included automatically, but it’s not considered a business expense.

However, in some municipalities, businesses are also subject to local taxes. In those cases, municipal tax is tax-deductible, and the same goes for provincial taxes, which are often based on the size of your business premises.