Fines for tax errors almost a thing of the past: more breathing space for SMEs
July 2025 - On 1 July 2025, automatic fines for first-time mistakes made in good faith will be abolished in Belgium. This is an important step forward for the self-employed and SMEs, who have been calling for fair treatment by the tax authorities for years.
For many entrepreneurs, tax returns are a source of stress. Until recently, a single mistake — no matter how small or unintentional — could quickly lead to a hefty tax increase. But that is about to change. From 1 July 2025, automatic penalties for a first mistake made in good faith will be abolished in Belgium. This is an important step forward for the self-employed and SMEs, who have been calling for fair treatment by the tax authorities for years.
Automatic penalty for the slightest mistake
Since an audit by the Court of Audit in 2022, the tax authorities have almost systematically applied a tax increase of at least 10 per cent when taxpayers made a mistake in their tax return and failed to declare more than 2,500 euros. Whether it was a mistake or late submission, entrepreneurs were almost automatically fined.
Although it was legally possible to challenge this penalty in the absence of bad faith, few entrepreneurs did so. The procedures were cumbersome and many taxpayers were unaware of their rights or gave up due to the administrative red tape.
A step towards fairness and trust
The pressure exerted by self-employed organisations and the ITAA has finally paid off. The abolition of the automatic tax increase has been included in the new federal coalition agreement and was approved on 17 June 2025 at second reading in the House of Representatives Finance Committee.
What will change in concrete terms? From 1 July 2025, no automatic penalty may be imposed for a first offence committed in good faith. From now on, it will be up to the tax authorities to prove that an entrepreneur acted deliberately wrongfully. This represents a fundamental shift in the burden of proof: innocence will be the starting point.
Right to make mistakes: more than a tax issue
This legislative change is more than just an amendment to a tax rule. It reflects a broader philosophy: entrepreneurs deserve trust, even when they make a mistake. The tangle of rules that SMEs face on a daily basis makes mistakes virtually inevitable. By enshrining the right to make mistakes in law, the government is finally acknowledging that reality.
