Belgium: Proposal to reinforce the conditions to obtain the dividend withholding tax exemption under article 264/1 of the Income Tax Code 1992 (Tate & Lyle exemption)

24.07.2025

A draft Bill dated 27 May 2025 includes, among other measures, stricter conditions when applying for the withholding tax exemption under article 264/1 of the Income Tax Code 1992 by EEA or treaty country companies holding less than 10% in the capital of a Belgian distributing company with an acquisition value of at least 2.5 million Euro for a minimum one year period.

These measures are detailed in pages 23 to 26, Section 4, articles 35 to 37 of the Bill.

The adoption of this law has been postponed and is currently under discussion at the Council of State.

We will continue to monitor the market and will inform you as soon as further details are available.

This Taxflash is intended to provide clients with general information gathered from different sources that are generally believed to be reliable. LuxCSD S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the client’s own risk and LuxCSD S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice.