Revenue from Belgium's withholding tax on dividends and interest income has surged by €1.6 billion, or 32%, reaching €6.6 billion in the first 11 months of 2024, according to figures from the Finance Ministry, reported by L'Echo and De Tijd on Tuesday.
The increase in revenue from withholding tax on "other" income is particularly significant. Tax on interest, especially from term accounts, savings certificates and bonds, jumped by 72%, reaching €2.9 billion.
Recently, households have shifted billions of euros from lightly or untaxed savings and investment products to more heavily taxed ones that offer higher returns. Additionally, the sharp rise in market interest rates since 2020 has boosted taxable investment income.
Since the end of 2022, savings deposits have dropped by €29 billion, and current account deposits have decreased by €27 billion, according to National Bank data. Interest from savings deposits is exempt from withholding tax up to €1,020 per person and per bank, with an average return of about 1%.
Conversely, current account interest rates are typically zero or negligible, generating little to no withholding tax revenue.
A tax-advantaged government bond issued in September, with a tax rate limited to 15%, alone brought in more than €100 million in withholding tax.
