Transactions involving bonds and debt securities are subject to the Belgian Tax on Stock Exchange Transactions (TOB) at a reduced rate compared to equities. The current rate for bond transactions is 0.12%, with a maximum cap of €1,300 per transaction. This favorable treatment reflects the importance of debt markets for government financing and corporate liquidity.

The tax applies to secondary market purchases and sales of bonds, including government bonds, corporate bonds, and other fixed-income instruments. Like equity transactions, the TOB is withheld at source by Belgian financial intermediaries. Investors using foreign brokers must self-assess and report the tax on their annual returns.

Key exemptions include transactions in Belgian linear bonds (OLO) when executed through the National Bank of Belgium’s auction system, certain repo transactions, and bonds issued by supranational organizations. These exemptions aim to maintain liquidity in critical debt markets and support government borrowing operations.

The lower rate and cap for bonds make them relatively more tax-efficient than equities for Belgian investors, particularly for buy-and-hold strategies. However, active bond traders should still account for the cumulative impact of TOB on portfolio turnover costs.

Understanding which debt instruments qualify for TOB exemptions can significantly optimize after-tax returns. For detailed coverage of TOB rules, exemptions, and compliance requirements, consult our Belgian TOB Guide.

This content is for informational purposes only and does not constitute legal or tax advice. Always consult a qualified tax advisor for matters specific to your situation.