Belgium - Tax Obstacle Affecting Cross-Border Rental of Equipment Eliminated

The Belgian government issued a Royal Decree on 31 October 2025 that introduces an exemption from withholding tax for cross-border payments related to the rental, lease, use and concession of tangible movable property. The decree applies as from 1 November 2025 and is welcome news to affected taxpayers.
 
In the past, Belgian taxpayers leasing or renting tangible assets on the global market have experienced competitive disadvantages because, in principle, a 30% withholding tax was due on the fees paid. Although many of Belgium’s tax treaties provide for an exemption for such payments, the exemption depends on the precise wording of the relevant treaty and is subject to a series of formalities. This administrative process is often time-consuming, creating a disadvantage in an internationally competitive market and can lead to delays and uncertainty for taxpayers.
 
The new Royal Decree aims to rectify this situation by providing for a full exemption from withholding tax for lease payments related to tangible movable property. The exemption applies to Belgian resident companies that lease/rent the tangible property from abroad and use it for their business activities, provided the lease/rental payments are part of a genuine transaction that has valid commercial reasons reflecting economic reality.
 
A certification is required to benefit from the exemption to enable the Belgian tax authorities to verify whether the conditions for the exemption are fulfilled. A new certification must be submitted when there is any change to the relevant agreement. In this way, a taxpayer can make use of the exemption with a minimal administrative burden.