Withholding tax
Tax exemption
Savings accounts are regulated by the government. This has resulted in the interest on savings accounts being tax free up to 980 euros per individual (2023 figure, which may change each year).
If the savings account is in the name of a married or officially cohabiting couple, the exemption is doubled to 1,960 euros euros a year.
If you have a joint account with someone you're not married to or living with officially like your sister or brother, you can also get twice the amount of exemption by completing a certificate of double exemption from withholding tax at your KBC branch.
Deduction of withholding tax by banks
Banks must deduct withholding tax of 1,960 euros on interest above the threshold amount. Consequently, the withholding tax releases individuals entirely from future tax payments on the amount in question. This means that the interest no longer has to be included in their personal income tax return.
Example of an account held by an individual
Base rate of interest + fidelity bonus (accrued on 31 December) |
1,500 euros |
Withholding tax is payable on |
1,500 euros - 980 euros (2023 exemption figure) = 520 euros |
Withholding tax is |
520 euros x 15% = 78 euros |
Net interest on 31 December |
1,500 euro - 78 euro = 1,422 euros |
Example of a joint account held by a married or officially cohabiting couple
Base rate of interest + fidelity bonus (accrued on 31 December) |
3,900 euros |
Withholding tax is payable on |
3,900 euros - 1,960 euros (2023 double exemption figure) = 1,940 euros |
Withholding tax is |
1,940 euros x 15% = 291 euros |
Net interest on 31 December |
3,900 euros - 291 euros = 3,609 euros |
What if I have more than one savings account?
Banks look at each savings account separately. The total interest for all your savings accounts (whether with one or more banks) may be more than the mtax-free threshold. Interest on the accounts of minor children is also counted as interest earned on savings by their parents. Earnings on savings above the tax-free threshold must be declared in your tax return under code 1151 or 2151.
Example of an individual with savings accounts at several different financial institutions
| KBC | KBC | Bank X | Bank Y | |
| Interest accrued |
2,000 euros | 1,200 euros | 1,150 euros | 1,950 euros |
| Amount exempt from withholding tax (in 2023) | 980 euros | 980 euros |
980 euros |
980 euros |
| Interest from which the bank deducts withholding tax |
1,020 euros | 220 euros | 170 euros | 970 euros |
| Withholding tax deducted by the bank |
153 euros | 33 euros | 25,5 euros | 145,5 euros |
Calculation of the amount that must be declared to the tax authorities
- Total interest accrued where withholding tax applies: 2,000 + 1,200 + 1,150 + 1,950 = 6,300 euros
- Total interest accrued where withholding tax is not deducted: 980 euros + 980 euros + 980 euros + 980 euros = 3,920 euros
- Interest that must be declared: 3,920 euros – 980 euros = 2,940 euros
Can I get back withholding tax if I've paid too much?
The tax authorities do not provide a specific section on the tax return form for refunds of excessively deducted withholding tax.
If you've paid too much withholding tax, you'll need to submit a withholding tax refund claim to the local Belgian tax authorities:
Federale Overheidsdienst Financiën
Belastingen en invordering
Administratie van de Ondernemings- en Inkomensfiscaliteit
Brussel II Directie Vennootschappen
Gewestelijke Directie
Louizalaan 233 - 245
1050 Brussel
It's advisable to do so as soon as possible after interest has been paid to your account.
