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14.5. Interest and Penalties

Effective from tax year 2018, the interest penalty for late payment of tax is based on the average of the reference indices with respect to 10-year OLO's (euro-denominated securities) published by the Belgian Debt Agency for the months of July, August and September of the preceding year, which  may range between 4% - 10%.

For non-filing and/or non-payment

Arbitrary assessment (if return not filed)

Late interest penalty: 4% annually (previously 7% up to 2017).

Monetary penalty: EUR 50 – EUR 1,250 / 10% - 200% of amount due in case of non-filing

Base: Difference between tax due and advance payments

Statute of limitations: three years

For late returns and/or late payment

Arbitrary assessment (return filed irregularly or in case of no answer to requests for additional information)

Late interest penalty: 4% annually (previously 7% up to 2017).

Monetary penalty: EUR 50 – EUR 1,250

Base: Difference between tax due and advance payments

Statute of limitations: three years

For inaccurate/incorrect filing

Arbitrary assessment (return filed irregularly or in case of no answer to requests for additional information)

Late interest penalty: 4% annually (previously 7% up to 2017).

Monetary penalty: EUR 50 – EUR 1,250 (non-compliance) EUR 250 – EUR 125,000 (in case of fraud)

Base: tax evaded or tax estimated

Statute of limitations: three years, seven years in case of fraud

For omission of income or overstatement of deductions

Late interest penalty: 4% annually (previously 7% up to 2017).

Monetary penalty: EUR 250 – EUR 125,000 (fraud)

Base: Tax estimated or tax evaded

Statute of limitations: three years, seven years in case of fraud