The benefits made through an event are taxable in Belgium to the extent that a permanent establishment is deemed to exist in Belgium.
A permanent establishment will in any case be deemed to exist where the organiser of an event is structured by ways of a Belgian legal entity.
In case a Belgian legal entity that is subject to corporate income tax is organising an event in Belgium, the profits generated through the event will be taxable in Belgium and in principle be subject to tax at the statutory corporate income tax rate of 25%.
In case a Belgian non-profit organisation that is subject to legal entity tax in Belgium is organising an event in Belgium, any profits generated through the event should not be taxable under the legal entity tax, unless the legal entity receives income from real estate (e.g. rental income) or movable income, such as interest or dividend income, on which 30% withholding tax is due.
In general, Belgian entities in the event sector (e.g. organisers of music festivals, catering companies, stage builders, etc.) are subject to corporate income tax rather than legal entity tax, even if they operate under the legal form of a non-profit-organisation (vzw/asbl).
Furthermore, when a foreign entity or physical person organises an event in Belgium, a taxable permanent establishment may exist in Belgium under certain circumstances. This will depend amongst others on the type of activities carried out in Belgium, the duration, and the double tax treaty concluded between the resident country and Belgium. To the extent a taxable permanent establishment exists in Belgium, the net profits generated through the permanent establishment will be taxable at the statutory corporate income tax rate of 25%. A tax credit will, in principle, be granted in the resident state.