The Belgian federal government is planning a major tax reform aimed at gradually increasing the tax-free allowance from €10,910 in 2025 to €13,700 by 2029. The aim of this measure is to reduce the tax burden on workers and increase their net income.
The increase in the tax-exempt portion will enable taxpayers to benefit from tax exemption on a larger proportion of their income. Currently, €10,910 is exempt, representing a saving of €2,727.5 (calculated at a rate of 25%). In 2029, with the proportion raised to €13,700, the tax saving will reach €3,425, representing an additional saving of €697.5 per year, or around €58 net per month.
The government also plans to harmonize the supplements to the exempt portion for dependent children. At present, these supplements vary according to the number of children. The reform aims to standardize these amounts, thereby ensuring fairness between families, whatever their size.
Another measure intended is a reduction in the special social security contribution, an additional contribution deducted from workers’ incomes. This contribution varies according to income and family situation. The aim of the reformation is to reduce this burden, particularly for low- and middle-income households, in order to boost workers’ purchasing power.
The increase in the tax-free allowance will be phased in from 2026, with the aim of reaching €13,700 in 2029. This gradual approach will enable taxpayers to benefit from a steady increase in their net income over several years.
These tax reforms are part of the government’s drive to make work pay and to support household purchasing power. By increasing the tax-exempt allowance, harmonizing the supplements for dependent children and reducing the special social security contribution, the aim is to create a fairer, more worker-friendly tax system.
Our mission in the field of corporate taxation is to help you manage a reasonable tax burden that aligns with your income and the opportunities provided by tax legislation.
