New Article 444 ITC And Circular Letter No. 2025/C/49: Remaining Uncertainties

Our Direct Tax team has published an article in the latest issue of Fiscale Actualiteit on the amended Article 444 of the Belgian Income Tax Code (ITC) and circular letter No. 2025/C/49 of the Belgian tax authorities.

Background

Under the old version of Article 444 ITC, a 10% tax increase applied where a taxpayer omitted to file its tax return (timely), or submitted an incomplete or inaccurate return. While the tax authorities could in theory waive the increase when the taxpayer acted in good faith, doing so was at their discretion, and waivers were far from guaranteed. The regime drew sustained criticism for its disproportionate impact on good-faith taxpayers.

What changed?

The Program Law of 18 July 2025 amended Article 444 ITC. Under the new regime, no tax increase shall apply in the event of a first error committed in good faith. The new regime alsointroduced a rebuttable presumption of good faith for first infringements: for a first infringement, the taxpayer is now deemed