Notional interest deduction rate for tax year 2016 is 1.630%
The Belgian NID rate for tax year 2016 (accounting years ending between 31 December 2015 and 30 December 2016, both dates included) would be 1.630%. Currently, the NID rate (for tax year 2015) is 2.630%. Hence, the rate would decrease with 1%. For SMEs, the NID rate would be 2.130% for tax year 2016. According
Circular letter on the deductibility of car costs
In a circular letter dated 15 July 2014 (see link below), the Belgian Minister of Finance, Koen Geens, has elaborated on the tax deductibility of the costs relating to cars being put at the disposal of third parties in the hands of whom the corresponding benefit in kind is considered to be taxable. For Belgian
Note to debtors of payroll tax for payments to non-residents (section 228, § 3 BITC or so-called ‘catch-all provision’)
On 23 July 2014, the Belgian Central Tax Administration published a note to the debtors of payroll tax for payments to non-residents in the Belgian Gazette, which provides for some welcome clarifications. Background Following the Miscellaneous Provisions Act of 13 December 2012 (published in the Belgian Official Gazette on 20 December 2012) and the Royal
Non-application of NID to foreign permanent establishment and real estate
The Belgian tax authorities have recently issued a practice note with regard to the Belgian notional interest deduction (‘NID’) and the possibility for the taxpayer to file a tax claim or request an ex officio tax relief. Companies subject to Belgian (non-resident) corporate income tax may deduct a notional interest reflecting the economic cost of
Brazil enacts new rules impacting dividend withholding, interest deductions, goodwill amortization and CFCs
The Brazilian government on May 14, 2014 enacted Law No. 12.973/2014, converting into law Provisional Measure 627/2013 (PM 627). The key provisions of the enacted law are the revocation of the Transitional Tax Regime (RTT) and new rules regarding the treatment of dividends, interest on net equity (INE), amortization of goodwill, and controlled foreign corporations
ECOFIN fails to reach agreement on anti-hybrid measure to be implemented into the Parent-Subsidiary Directive – FTT first on shares and some derivatives
1. Background On 25 November 2013, the European Commission has proposed to amend the EU Parent-Subsidiary Directive (‘PSD’) in order to tackle tax fraud/evasion and aggressive tax planning/base erosion and profit shifting (‘BEPS’) within the European Union. The proposal sought to insert (i) a specific anti-abuse rule for hybrid loan arrangements resulting in a double
Tax return deadline for income year 2013 (assessment year 2014) – Corporates, legal / non-resident entities
The Belgian tax authority has communicated the deadlines for the different tax returns assessment year 2014 for corporates, legal entities and non-resident entities. An overview of these deadlines can be found below. For tax residents and non-residents with an accounting year ending on 31 December 2013: Corporate income tax return Belgian tax residents 30 September 2014 Income
Parliamentary question clarifies whether (for direct tax purposes) “small tools, small equipment and stationary” should be considered as an investment or an immediate expense.
Recently, the minister of Finance answered a Parliamentary question regarding “small equipment, small tools and stationary”, i.e. whether for direct tax purposes, “small equipment, small tools and stationary” should not be considered as an investment and can therefore be directly expensed? According to the Minister of Finance, and based on accounting law, the company should define the valuation rules in
