Jan Jambon's major tax reform adopted: Here's what will change for Belgians

Belgium's Chamber of Representatives has adopted a significant tax reform spearheaded by Finance Minister Jan Jambon, marking the first in a series of planned government fiscal changes. The centerpiece of this reform is a gradual increase in the tax-exempt income threshold, the amount below which individuals owe no tax. This threshold will rise from the current 10,910 euros to 14,450 euros for the 2030 tax year and further to 15,600 euros for the 2031 tax year, though the latter figure requires confirmation by the subsequent government.

Accompanying this adjustment, a royal decree will modify the calculation of professional withholding tax, aiming to increase net monthly salaries rather than relying on annual tax assessments. The reform also introduces changes to the tax benefits for dependent children, with the exempt amount for the first two children set to increase to 2,650 euros each by 2029. However, indexation of this exemption will be frozen for subsequent children.

Further measures include the progressive phasing out of the spousal quotient, a mechanism that allowed couples with a significant income disparity to benefit from tax reductions. For non-retired partners, the maximum amount will be halved by 2029, while a 20-year transitional period is planned for retired couples. The reform also extends the copyright regime to the IT sector, increases the minimum remuneration for company directors, and limits flat-rate benefits to 20% of gross salary. Additionally, it enhances the employment bonus for low-wage earners and introduces individual calculation of the special social security contribution from 2028, moving away from household-based assessments.