The latest leak from the Federal Government negotiations has revealed that a 5% capital gains tax is on the table. The implications for cryptocurrencies in Belgium are significant, L'Echo reported on Friday.
The capital gains tax is one of the disputed aspects of government formation talks. The tax has even been renamed a 'solidarity contribution' in the latest leak of Bart De Wever's socioeconomic 'supernote' obtained by Le Soir on Thursday.
A final version of the supernote has not yet been agreed so none of the leaked measures are set in stone. If it were implemented a capital gains tax would not work retroactively, so past earnings would be exempt. The first €6,000 earned every year would also be exempt.
On Friday, L'Echo reported that the tax will also apply to cryptocurrencies. These are currently taxed at 0% in terms of capital gains, but there is a 33% tax on cryptocurrency as a miscellaneous income and progressive tax of up to 50% on cryptocurrency as professional income.
Switzerland, Cyprus and Malta are the only European countries that don't tax cryptocurrencies at all.
More clarity, more legitimacy
The new tax would mean an end to a fiscal paradise for crypto traders in Belgium. But it would also serve to legitimise the currency.
"The problem with the crypto tax regime is that there is currently a lot of uncertainty," said Baptistin Alaime of Tuerlinckx Tax Lawyers. "It is very difficult to calculate what you need to declare and to meet your tax obligations" as tax is calculated on a case-by-case basis. "From the moment they are taxed, cryptos will become legitimate in a way.
In addition, the EU Directive DAC 8 is expected to bring even more clarity to the situation once it is transposed into Belgian law. This will occur in 2026 at the earliest.
