Constitutional Court annuls selective tax base reduction for associations

Non-profit associations (ASBLs) and international non-profit associations (AISBLs) are, under certain conditions, required to pay an annual tax on their assets (« Taxe compensatoire des droits de succession/ Taks tot vergoeding der successierechten »). This tax exists to offset the fact that such legal entities do not pay inheritance duties. Some associations are completely exempted — either because of the nature of their purpose, or because their assets remain below EUR 50,000 (assessed annually).

By a law of 28 December 2023, this tax was increased from a single rate of 0.17% on the portion exceeding the exempt threshold of EUR 25,000 to progressive rates of up to 0.45% on the portion exceeding the exempt threshold of EUR 50,000 (resulting in a potential increase in the amounts payable for certain taxpayers). However, that same law provided for a 62.3% reduction in the taxable base for taxpayers belonging to certain sectors (including, among others, healthcare, sport, culture or education).

The validity of the law of 28 December 2023 was challenged before the constitutional Court, with several legal entities subject to this tax seeking the annulment of the new provisions.

In a judgment of 4 December 2025[1], the constitutional Court held that the contested provisions do not infringe the rules governing the distribution of competences, but found it discriminatory that the reduction in the taxable base is granted only to certain sectors. On the basis of the elements put forward in the preparatory works, the Court held that taxpayers in those sectors do not indeed differ from other comparable taxpayers.

Consequently, the Court annulled the provision providing for a reduction in the taxable base for certain sectors. However, in order to prevent several categories of taxpayers (including associations) from facing an unforeseen tax burden with retroactive effect, and to allow the legislator to adopt new legislation, the Court decided to maintain the effects of the annulled provision until 31 December 2026 at the latest.

 
[1] Belgian Constitutional Court, Judgment No. 159/2025, 4 December 2025, www.const-court.be.