Investment deduction percentages for assessment year 2019 published
On 27 April 2018, the new percentages for investment deduction, applicable to assessment year 2019, were published in the Belgian Official Gazette. In order to apply the investment deduction, the taxpayer needs to comply with certain conditions and formalities. Here is a summary of the percentages for assessment year 2019: 1. One-shot investment deduction Private individuals:
Law on innovation income deduction: finally published
Finally, the new innovation income deduction (IID) has entered into force. Today, on 20 February 2017, the law with respect the IID has been published in the Belgian Official Gazette. The patent income deduction regime (PID) has been replaced with the IID regime in order to make it BEPS compliant, i.e. avoiding that business profits
New innovation income deduction: almost there!
On the last day of January 2017, the Finance Commission of the Chamber of Representatives adopted the draft law on innovation income deduction. This draft law should be adopted by the Chamber of Representatives during one of its plenary debates soon, which is scheduled for 2 February 2017. After that, the law can be published
New PID Regime: Innovation Income Deduction
On 2 December 2016, the Council of Ministers approved the draft Bill on the new Innovation Income Deduction regime. This pre-draft law still has to be approved by Parliament, so the below is still subject to changes. In contrast to the previous Patent Income Deduction (PID) regime, the qualifying patent/innovation income will be calculated on
Draft law on the new Belgian Innovation Income Deduction
Today, the Council of Ministers approved the new Belgian Innovation Income Deduction (IID) which will be BEPS-compliant and will replace the abolished Patent Income Deduction. The draft law is now subject to recommendations from the Council of State. The important takeaways of the IID are: The taxable result of a Belgian company or branch will
New patent income deduction (PID) regime: Innovation Income Deduction
As from 1 July 2016, the existing Belgian patent income deduction (‘PID’) regime has been abolished (Official Gazette of 11 August 2016, 2nd ed.). Indeed, in line with the so-called ‘modified’ nexus approach, the current patent box regime had to be replaced with a BEPS (in particular Action Point 5 of the OECD BEPS Action
EU Commission’s final decisions in Starbucks and Fiat state aid cases
On 21 October 2015, the European Commission decided that Luxembourg and the Netherlands have granted selective tax advantages to Fiat Finance and Trade and Starbucks, respectively. These are illegal under EU state aid rules. For more information on the key aspects of the investigation and its impact, please have a look at our news alert.
Cayman tax enacted – List of legal entities published
With the Program Law of 10 August 2015, the so-called “Cayman tax” has been implemented. Under this regime, certain legal constructions are treated as transparent for Belgian tax purposes, implying that income generated by them is taxable or their founders or beneficiaries. The Cayman tax is in principle applicable to income that is obtained, attributed or paid
