In the complex fiscal system of Belgium (with competences divided among the different levels of government), diverse tax regulations can be advantageous for artists, private donors or sponsors, or people owning art collections.
The standard VAT-rate, for example, is 21%, but there are exceptions in which the rate is 6% or 0%. These include the VAT on certain cultural goods and services (Cultuurloket provides an overview). Furthermore, we could mention lower taxation rates on income through royalties, or the treaties the Federal State has signed with other countries with regard to avoiding double taxation of non-residents working in Belgium. (Both Flanders DC and Cultuurloket (see 3.5.1 and 7.2.1) provide guides to the fiscal system for cultural professionals.)
There are a number of tax incentives that provide beneficial conditions for corporate or individual giving to cultural causes (although, compared to other countries, there is no widespread practice of private financing of culture, see 7.3). Tax shelters exist for companies investing in audiovisual productions (since 2003) and performing arts productions (since 2017), which allows them to get tax exemptions on these investments. Companies can get tax deductions through sponsorship activities. Donations of more than EUR 40 to recognized (cultural) charities entitle individuals to a tax reduction. Under certain conditions, this also applies to the donation of works of art to public institutions. With regard to inheritance taxes, we should mention that succession duty can be fulfilled through the donation of works of art. This was the subject of Federal legislation, until it was ceded to the Regions in 2015. In Flanders, bequeathing money to a charity is currently taxed at a lower rate (8.5%). Additionally, people can opt for a ‘duo legacy’, which means that heirs can donate (a part of) the inheritance to another beneficiary (including a non-profit organisation), in exchange for paying the succession duty. On 18 September 2020, a preliminary draft of a decree was approved by the Government of Flanders that will abolish the duo legacies in 2021. At the same time, the tax rate on bequeathing inheritances to charities will be reduced to 0% and a new tax exemption for donations to charities will be introduced
 For a comprehensive overview of options for private funding of culture in Flanders and Brussels (up until 2015), see De Voldere, Isabelle et al. 2015. Onderzoek naar de mogelijkheden van aanvullende financiering voor de culturele sector. Brussel: IDEA Consult/Departement Cultuur, Jeugd, Sport en Media van de Vlaamse Overheid.
 Here, ‘performing arts’ refers to theatre, circus, street theatre, opera, classical music, and music theatre.