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WIB Article 171: Separate Taxation of Certain Income

Detailed analysis of WIB Article 171 provisions governing separate taxation of movable income and the Roerende Voorheffing withholding system.

Article 171 of the Belgian Income Tax Code (WIB 92) establishes the framework for separate taxation of certain categories of income, primarily movable income such as dividends, interest, and certain capital gains. Under this regime, income is subject to withholding tax (Roerende Voorheffing, RV) at source, which in many cases constitutes final taxation, exempting the recipient from including the income in their annual tax return.

The standard withholding rate is 30% for dividends and interest from savings accounts, though reduced rates apply in specific circumstances. EU-sourced dividends may benefit from lower rates under parent-subsidiary directives, and certain government bonds or regulated savings accounts enjoy preferential treatment. The withholding tax is deducted automatically by the paying institution and remitted directly to the tax authorities.

For Belgian residents, Article 171 creates a split tax regime: while the withholding tax is often final and liberating for individuals, taxpayers can elect to include certain types of movable income in their global taxable income if doing so results in a lower overall tax burden. This option is particularly relevant for lower-income taxpayers whose marginal rate falls below 30%.

Capital gains on shares generally fall outside the scope of Article 171 and remain tax-exempt for individual investors managing a normal private portfolio. However, speculative transactions or professional trading activities may trigger taxation under different provisions. The line between exempt capital gains and taxable speculation is often contested and requires careful documentation.

Understanding Article 171 is essential for Belgian residents with investment portfolios, as well as non-residents receiving Belgian-source income. The interaction between withholding tax, final taxation, and optional inclusion in the tax base creates planning opportunities but also compliance risks if not properly managed.

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.