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Belgium’s newly formed coalition government has committed to implementing a 3% Digital Services Tax (DST) by 2027, as outlined in the Federal Coalition Agreement 2025-2029, also known as the “Arizona deal.” This move revives Belgium’s previous DST plans, which had been on hold pending progress from the OECD and EU on global digital tax reforms.
Belgium Moves Forward as OECD’s Global Tax Reform Stalls
DSTs are levied on revenue generated from social media services, search engines, and online marketplaces, particularly non-resident digital service providers—most notably, U.S. tech giants—which often fall outside conventional corporate tax regimes.
While most countries paused new DST implementations to avoid U.S. trade retaliation, the recent shift in U.S. policy has changed the landscape. Following Republican victories in Congress and the White House in 2024, President Donald Trump issued an Executive Order rejecting the previous U.S. commitment to the OECD’s Pillar 1 digital tax agreement. With Pillar 1 unlikely to progress, Belgium and other European nations, including France and Italy, are reviving their DST plans.
Belgium’s DST: Scope & Thresholds
Belgium’s 3% DST will likely apply to companies generating revenue from:
- Targeted digital advertising
- Multi-sided digital platforms that enable user interactions and transactions
- User data monetization
Only companies exceeding these financial thresholds will be subject to the tax:
- €750 million in global annual revenue
- €25 million in Belgian digital revenue
What’s Next?
Belgium may enact the DST unilaterally or in coordination with the EU, setting the stage for further tensions with the U.S. as countries seek new ways to tax digital economy profits.
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