Understand · Payroll glossary
What is a dividend?
Updated on
A dividend is the share of a company’s profit that the general meeting decides to distribute to its partners or shareholders. In 2026: 30% (ordinary withholding tax on dividends (roerende voorheffing / précompte mobilier)). In Dutch: dividend.
Definition of a dividend
It is paid out of profit already taxed under corporate income tax. The company withholds tax (30% in principle, 18% under VVPR-bis), which usually frees the shareholder from declaring it.
A small part of the ordinary dividends received by an individual is exempt: the withholding tax on those amounts is recovered through the tax return (€833 for 2026 income).
The key figure in 2026
Source: VVPRbis et réserve de liquidation : le précompte mobilier relevé à 18 % au 1er juillet 2026, Forum for the Future (secondary source). Value in force on 1 October 2026.
Worked example
An SME makes €50,000 of profit: €10,000 in corporate income tax (20%). If it distributes the remaining €40,000, the shareholder receives €28,000 net at the ordinary rate, or €32,800 under VVPR-bis.
In Dutch: dividend
In Dutch-language letters from your social insurance fund, your accountant or the tax authorities, a dividend is called ‘dividend’; in French-language ones, ‘dividende’. On Indexo’s English pages: dividend.
Dutch term taken from: FPS Finance, Partena Professional (secondary source).
Not to be confused with…
- Director’s remuneration: this is professional income, deductible for the company, subject to social security contributions and progressive tax.
- Withholding tax on investment income: the tax withheld at source on investment income, such as dividends, interest or certain copyright income.
Calculate it for your situation
Pay, VVPR-bis dividends, liquidation reserve and IPC (individual pension commitment): the net in your pocket and corporate income tax.
Related terms
- VVPR-bis regimeSelf-employed and companies · in Dutch: VVPRbis-regime
- Private limited company (SRL/BV)Self-employed and companies · in Dutch: besloten vennootschap (BV)
- Withholding tax on investment incomeFrom gross to net · in Dutch: roerende voorheffing
Sources
Parameters in force on 1 October 2026. Each parameter links to its source, the official one where it exists; a secondary source is flagged as such.
- VVPRbis et réserve de liquidation : le précompte mobilier relevé à 18 % au 1er juillet 2026, Forum for the Future (secondary source).
- Récapitulatif des principaux plafonds fiscaux, exercice d’imposition 2027 – revenus 2026 (23 December 2025), Wolters Kluwer (secondary source).
- Passer en société en 2026 : rémunération minimale et VVPR-bis à 18 %, Deg & Partners (secondary source).
- Toelichting bij deel 1 van de aangifte in de personenbelasting, aanslagjaar 2026 (Vlaams Gewest), FPS Finance.
- Hervorming VVPRbis & vervroegde uitkeringen, Partena Professional (secondary source).