As part of the Belgian government agreement, it was decided that banks and insurance companies should pay an additional tribute to the State revenue, thanks to an amendment to the notional interest deduction regime (NID), taking into account Basel III and Solvency II agreements.
Following a proposal by the Finance Minister Johan van Overtveldt, the Belgian Council of Ministers now approved a draft bill on the contribution of financial institutions to State revenue (under review by the State Council).
The draft bill aims at considering specific own funds of credit institutions and insurance companies as representing the part of prudential capital on which a reduction of the NID would be charged.
Technically, this reduction would then be applied following a particular sequence, on the deduction of tax losses carried forward, on the dividend received deduction and on the NID itself, so that each financial company concerned would contribute fairly, according to the government’s press release.
