Global Daily Tax News, Belgian Cabinet Agrees Personal Tax Reforms, (Dec 24, 2025)

Belgium's Cabinet has approved proposed amendments to the Personal Income Tax Code.

The legislation would implement the various reforms proposed as part of the coalition agreement between political parties. The legislation provides for:

• A gradual increase in the income tax allowance;

• Changes to the enhanced allowance for parents, with increased relief for taxpayers from the first dependent child; and

• A halving of tax relief for married non-retired persons by 2029, and the gradual repeal of relief for retired persons over 20 years.

Further, the legislation would establish a 33 percent levy for persons that continue to work beyond retirement age, and there will be a EUR2,000 de minimis scheme for income from occasional work.

Other commitments agreed include the introduction of an entrepreneur's deduction for self-employed persons and those with a second job.

Penalties for insufficient advance tax payments for self-employed persons not working through a company will be eradicated.

Social security contributions will be reduced for single workers, and the tax burden on low-income earners will be reduced through an increase to the work bonus.

The legislation must now be approved by lawmakers, with the law to be tabled in the House of Representatives after signature from the King.