Income tax on legal entities

Last modified:

Thursday 2 September 2021

Rather than being subject to corporation tax, most non-profit organisations pay income tax on legal entities. Read on to find out what this actually entails.

Who pays income tax on legal entities?

There are 3 types of organisations subject to legal entities tax:

  • non-profit organisations

  • the different levels of government (the state, communities, regions, provinces, municipalities), the public social welfare centres (OCMW/CPAS) and public religious associations

  • intermunicipal associations and some specific institutions such as the Flemish Transport Company

What is the tax base for legal entities tax? 

Taxes are not calculated on the entity's normal income or profits, but only on:

  • income from real estate (e.g. rental income)
  • certain types of movable income (e.g. investments)

That income should be filed online via Biztax.

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