Belgian tax reform

Update – New upcoming tax measures – Program Act enacted

In our Newsflash of 7 November 2016 we already made reference to new upcoming tax measures. Certain of these anticipated changes have now been introduced by the Program Act of 25 December 2016, which was published in the Official Gazette on 29 December 2016. From a personal income tax perspective, the above Program Act introduces […]

nicolas-de-limbourg-author

In our Newsflash of 7 November 2016 we already made reference to new upcoming tax measures. Certain of these anticipated changes have now been introduced by the Program Act of 25 December 2016, which was published in the Official Gazette on 29 December 2016. From a personal income tax perspective, the above Program Act introduces […]

Company cars, internal capital gains, withholding tax, … What are the new tax measures for the year end?

Last October, the Federal Government reached an agreement on the budget and, in this framework, on several tax measures. The most important ones relate to the taxation of company cars and the end of the tax-free step-up in the case of a contribution in capital of shares by an individual (commonly referred to as “internal […]

philippe-vanclooster-author

Last October, the Federal Government reached an agreement on the budget and, in this framework, on several tax measures. The most important ones relate to the taxation of company cars and the end of the tax-free step-up in the case of a contribution in capital of shares by an individual (commonly referred to as “internal […]

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 […]

Tom Wallyn

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 […]

Transfer Pricing Documentation – Forms and guidance published

Today, the Royal Decrees that contain the various models of the forms Belgian entities need to use to submit the Master File, Local File and CbC Report were published in the Belgian Official Gazette. This is the closing stone of the formal introduction of transfer pricing documentation requirements into Belgian tax law. Together with the […]

Xavier Van Vlem

Today, the Royal Decrees that contain the various models of the forms Belgian entities need to use to submit the Master File, Local File and CbC Report were published in the Belgian Official Gazette. This is the closing stone of the formal introduction of transfer pricing documentation requirements into Belgian tax law. Together with the […]

Publication of Royal Decree dated 9 November 2016 on Belgian specialised real estate investment funds

PwC is pleased to inform you that the Royal Decree dated 9 November 2016 on Belgian specialised real estate investment funds (better known as “fonds d’investissement immobilier spécialisé” or FIIS / “gespecialiseerd vastgoedbeleggingsfonds” or GVBF) has been published in the Belgian Official Gazette of today, 18 November 2016. As you know, this new investment vehicle […]

Grégory Jurion

PwC is pleased to inform you that the Royal Decree dated 9 November 2016 on Belgian specialised real estate investment funds (better known as “fonds d’investissement immobilier spécialisé” or FIIS / “gespecialiseerd vastgoedbeleggingsfonds” or GVBF) has been published in the Belgian Official Gazette of today, 18 November 2016. As you know, this new investment vehicle […]

Budget 2017: New tax measures announced – Corporate tax reform reconfirmed but not yet decided

In the framework of the budget for 2017, the Federal Government reached an agreement on several tax measures. On 16 October 2016, during the policy statement, the Prime Minister announced what follows: The speculation tax for individuals on the transfer of quoted shares would be abolished as of 1 January 2017; Tax on stock exchange […]

philippe-vanclooster-author

In the framework of the budget for 2017, the Federal Government reached an agreement on several tax measures. On 16 October 2016, during the policy statement, the Prime Minister announced what follows: The speculation tax for individuals on the transfer of quoted shares would be abolished as of 1 January 2017; Tax on stock exchange […]

Belgium – corporate tax reform announced

In April 2016, the Federal government, in the framework of the agreement on additional budgetary and recovery measures following the 2016 budgetary control exercise, announced a reform of the Belgian corporate income tax (see our news flash on 11 April 2016). In July 2016, the ‘High Finance Council’ has published a report examining the different […]

philippe-vanclooster-author

In April 2016, the Federal government, in the framework of the agreement on additional budgetary and recovery measures following the 2016 budgetary control exercise, announced a reform of the Belgian corporate income tax (see our news flash on 11 April 2016). In July 2016, the ‘High Finance Council’ has published a report examining the different […]

Summary of what has changed during the summer: newly-adopted tax measures

This summer, the Parliament adopted a range of new tax measures (more details below). Other measures are currently under review at the Chamber or pending before the State Council. More details on the new tax measures are announced on our website: Tax reform in Belgium. Patent income deduction The Act of 3 August 2016 providing […]

philippe-vanclooster-author

This summer, the Parliament adopted a range of new tax measures (more details below). Other measures are currently under review at the Chamber or pending before the State Council. More details on the new tax measures are announced on our website: Tax reform in Belgium. Patent income deduction The Act of 3 August 2016 providing […]

Parliament has approved Belgian Transfer Pricing Documentation Requirements

On 29 June 2016, the Belgian Parliament adopted the ‘programme law’ (introduced on 2 June 2016) that contains the introduction into Belgian tax law of specific transfer pricing documentation requirements (published in the Belgian Official Gazette of 4 July 2016). These requirements are based on Action 13 of the OECD /G20 BEPS Project. See our post […]

Jonas Van de Gucht - Director - PwC belgium

On 29 June 2016, the Belgian Parliament adopted the ‘programme law’ (introduced on 2 June 2016) that contains the introduction into Belgian tax law of specific transfer pricing documentation requirements (published in the Belgian Official Gazette of 4 July 2016). These requirements are based on Action 13 of the OECD /G20 BEPS Project. See our post […]

New Belgian Real Estate Investment Fund (FIIS): draft legislation introduced in Parliament

The draft Program Act of 28 June 2016 contains several tax rules applicable to the existing Belgian Regulated Real Estate Company (RREC*) and the new Belgian Real Estate Investment Fund (FIIS**) and creates the legal basis for the Belgian government to issue decrees implementing the FIIS regime. Final legislation is expected to be published during […]

Grégory Jurion

The draft Program Act of 28 June 2016 contains several tax rules applicable to the existing Belgian Regulated Real Estate Company (RREC*) and the new Belgian Real Estate Investment Fund (FIIS**) and creates the legal basis for the Belgian government to issue decrees implementing the FIIS regime. Final legislation is expected to be published during […]

New single annual bank tax announced

On Friday the 13th, the Council of Ministers approved a draft bill of law establishing a new single annual bank tax replacing four different existing taxes, with a view to a better distribution of the tax burden between small and large banks. Overall, it leads to a tax increase of EUR 55 million. As a […]

olivier-hermand-author

On Friday the 13th, the Council of Ministers approved a draft bill of law establishing a new single annual bank tax replacing four different existing taxes, with a view to a better distribution of the tax burden between small and large banks. Overall, it leads to a tax increase of EUR 55 million. As a […]

Belgium – budgetary control 2016: reform of corporate tax regime announced

On 9 April 2016, the federal government reached an agreement on additional budgetary and recovery measures following the 2016 budgetary control exercise. To keep the budget on track, among others the following tax measures have been agreed: Reform of the Belgian corporate income tax regime. The corporate income tax regime will be reformed in order […]

philippe-vanclooster-author

On 9 April 2016, the federal government reached an agreement on additional budgetary and recovery measures following the 2016 budgetary control exercise. To keep the budget on track, among others the following tax measures have been agreed: Reform of the Belgian corporate income tax regime. The corporate income tax regime will be reformed in order […]

European Commission proposes Anti-Tax Avoidance Package

On 28 January 2016, the EU Commission presented its Anti-Tax Avoidance Package.  The continuing political will to address tax avoidance may result in the 100% consensus required by EU Member States to effect the proposed tax changes. The EU-28 governments will have to decide if they are willing to go further than the G20/OECD BEPS […]

philippe-vanclooster-author

On 28 January 2016, the EU Commission presented its Anti-Tax Avoidance Package.  The continuing political will to address tax avoidance may result in the 100% consensus required by EU Member States to effect the proposed tax changes. The EU-28 governments will have to decide if they are willing to go further than the G20/OECD BEPS […]

Draft Program Act of 26 November 2015 – Tax measures

A draft Program Act has recently been submitted to Belgian Parliament, containing the following tax measures: When a former employee has entered into the system of unemployment with company surcharge, takes up a new employment with another employer (or becomes self-employed), he is in principle still entitled to receive the company surcharge. This surcharge (and additional […]

nicolas-de-limbourg-author

A draft Program Act has recently been submitted to Belgian Parliament, containing the following tax measures: When a former employee has entered into the system of unemployment with company surcharge, takes up a new employment with another employer (or becomes self-employed), he is in principle still entitled to receive the company surcharge. This surcharge (and additional […]

Tax reform announced in the Flemish Region

Following the recent tax reform announcements in the Brussels Capital Region and Walloon Region, the Flemish Government has recently also announced a reform on the ‘tax reduction for mortgage loans concluded for the sole and own dwelling’. The changes envisaged will apply to mortgage loans concluded as of 2016. The condition of ‘sole’ dwelling will be abolished. Consequently, […]

nicolas-de-limbourg-author

Following the recent tax reform announcements in the Brussels Capital Region and Walloon Region, the Flemish Government has recently also announced a reform on the ‘tax reduction for mortgage loans concluded for the sole and own dwelling’. The changes envisaged will apply to mortgage loans concluded as of 2016. The condition of ‘sole’ dwelling will be abolished. Consequently, […]

Tax reform announced in the Walloon Region

Recently, the Walloon Government announced a tax reform with respect to the “tax reduction for mortgage loans for the sole and own dwelling”. In this respect, a so-called system of “chèque habitat” would be introduced. The tax reduction would be limited in time (for maximum 20 years) and depend on the net taxable income of […]

nicolas-de-limbourg-author

Recently, the Walloon Government announced a tax reform with respect to the “tax reduction for mortgage loans for the sole and own dwelling”. In this respect, a so-called system of “chèque habitat” would be introduced. The tax reduction would be limited in time (for maximum 20 years) and depend on the net taxable income of […]

Tax reform announced in the Brussels Region

The Brussels Capital Region has recently presented its budget for 2016. Amongst others, a tax reform was announced, which will be implemented partially in 2016 and partially in 2017. In 2016, the lump-sum regional tax of EUR 89 and the additional levy of 1% on the federal personal income taxes will be abolished. Real estate […]

nicolas-de-limbourg-author

The Brussels Capital Region has recently presented its budget for 2016. Amongst others, a tax reform was announced, which will be implemented partially in 2016 and partially in 2017. In 2016, the lump-sum regional tax of EUR 89 and the additional levy of 1% on the federal personal income taxes will be abolished. Real estate […]

Belgium: new agreement on Tax Shift

On 10 October 2015, the Belgian federal government reached a new agreement on the so-called “tax shift”. The tax shift is the shift from tax on labour to other taxes. The objectives of the tax shift are: To respect the budgetary engagements; A revival of the economy by creating more jobs; Reducing labour taxes to […]

On 10 October 2015, the Belgian federal government reached a new agreement on the so-called “tax shift”. The tax shift is the shift from tax on labour to other taxes. The objectives of the tax shift are: To respect the budgetary engagements; A revival of the economy by creating more jobs; Reducing labour taxes to […]

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 […]

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 […]

Belgium: agreement on tax shift

On 23 July 2015, the Belgian federal government reached an agreement on the so-called “tax shift”. The tax shift is mainly aimed at i) reducing the tax burden on labour, ii) improving the competitiveness of Belgian companies and iii) creating more jobs. It involves the introduction of a number of new tax measures that may impact […]

philippe-vanclooster-author

On 23 July 2015, the Belgian federal government reached an agreement on the so-called “tax shift”. The tax shift is mainly aimed at i) reducing the tax burden on labour, ii) improving the competitiveness of Belgian companies and iii) creating more jobs. It involves the introduction of a number of new tax measures that may impact […]

Cayman Tax: tax transparency for ‘legal constructions’

Currently, a bill of law is discussed at the level of the Belgian federal government concerning the so-called Cayman Tax. In principle, the new rule would be applicable as from assessment year 2016 (i.e. income collected during calendar year 2015). The Cayman Tax is a tax on certain income that is derived, through legal constructions, […]

philippe-vanclooster-author

Currently, a bill of law is discussed at the level of the Belgian federal government concerning the so-called Cayman Tax. In principle, the new rule would be applicable as from assessment year 2016 (i.e. income collected during calendar year 2015). The Cayman Tax is a tax on certain income that is derived, through legal constructions, […]

Budgetary control in Belgium: New tax measures announced

On 30 March 2015, the Belgian government announced new Belgian tax measures in the framework of the budgetary control. They concern: Fight against fraud The fight against tax fraud will be pursued. The estimated net revenues are MEUR 160. Cayman tax: applicable as from calendar year 2015 The “Cayman tax” would already be applicable as from calendar year […]

philippe-vanclooster-author

On 30 March 2015, the Belgian government announced new Belgian tax measures in the framework of the budgetary control. They concern: Fight against fraud The fight against tax fraud will be pursued. The estimated net revenues are MEUR 160. Cayman tax: applicable as from calendar year 2015 The “Cayman tax” would already be applicable as from calendar year […]

Impact of announced tax measures on Transfer Pricing

As previously announced, a number of new tax measures has been announced in the framework of the Belgian government formation and the budget for 2015. Some of these will also have an impact on transfer pricing: The plan is to invest heavily in data mining tools for case selection purposes. These are likely to be used for […]

patrick-boone-author

As previously announced, a number of new tax measures has been announced in the framework of the Belgian government formation and the budget for 2015. Some of these will also have an impact on transfer pricing: The plan is to invest heavily in data mining tools for case selection purposes. These are likely to be used for […]

New Belgian tax measures announced

A number of new tax measures have been announced in the framework of the Belgian government formation and the budget for 2015, on which an agreement was reached in the second week of October 2014. These measures have an impact on: -      entities – companies – corporate income tax; -      individuals – personal income tax; […]

philippe-vanclooster-author

A number of new tax measures have been announced in the framework of the Belgian government formation and the budget for 2015, on which an agreement was reached in the second week of October 2014. These measures have an impact on: -      entities – companies – corporate income tax; -      individuals – personal income tax; […]

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 […]

philippe-vanclooster-author

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 […]

VAT: Practice note – Retention of documents

The Belgian Income Tax and VAT authorities recently published a combined practice note commenting on the alignment of the Income Tax and VAT procedures as regards the retention of documents. What is new for VAT is the fact that the delivery of a receipt in case of retention of documents by the VAT authorities is […]

christoph-zenner-author

The Belgian Income Tax and VAT authorities recently published a combined practice note commenting on the alignment of the Income Tax and VAT procedures as regards the retention of documents. What is new for VAT is the fact that the delivery of a receipt in case of retention of documents by the VAT authorities is […]

The 6th State Reform and Belgian expatriate tax

On 28 May 2014 the law of 8 May 2014, modifying the Belgian income tax code of 1992 following the 6th State Reform (Act of 6 January 2014) was published in the Official Gazette. Rules applicable until tax year 2014 (income year 2013 included) Foreign executives temporarily working in Belgium for whom the special tax […]

nicolas-de-limbourg-author

On 28 May 2014 the law of 8 May 2014, modifying the Belgian income tax code of 1992 following the 6th State Reform (Act of 6 January 2014) was published in the Official Gazette. Rules applicable until tax year 2014 (income year 2013 included) Foreign executives temporarily working in Belgium for whom the special tax […]

6th State reform: Taxation of individuals – Changes published

On the 28th of May 2014 the law reforming the Belgian Income Tax Code in light of the 6th state reform has been published in the Official Gazette. Due to this state reform Regions (Flanders, Brussels and Wallonia) will obtain increased fiscal autonomy. A portion of the personal income tax will be attributed to the […]

nicolas-de-limbourg-author

On the 28th of May 2014 the law reforming the Belgian Income Tax Code in light of the 6th state reform has been published in the Official Gazette. Due to this state reform Regions (Flanders, Brussels and Wallonia) will obtain increased fiscal autonomy. A portion of the personal income tax will be attributed to the […]

Parliamentary question regarding the application of Belgian thin cap rules for cash pooling activities

The Minister of Finance answered a Parliamentary question on how the Belgian thin cap rules should be applied in practice to cash pooling activities. The Minister was asked a.o. how a daily assessment of the 5:1 debt-equity ratio links in with the netting of interest paid and received for cash pooling companies (for more information […]

axel-smits-author

The Minister of Finance answered a Parliamentary question on how the Belgian thin cap rules should be applied in practice to cash pooling activities. The Minister was asked a.o. how a daily assessment of the 5:1 debt-equity ratio links in with the netting of interest paid and received for cash pooling companies (for more information […]

Practice note issued in relation to Belgian fairness tax

As from AY14 (which are financial years ending 31 December 2013 or later), a so called ‘fairness tax’ of 5.15% is levied on certain dividend distributions made by large Belgian companies or by foreign companies with a Belgian permanent establishment, when the underlying profits have not been effectively taxed due to tax losses or Notional […]

philippe-vanclooster-author

As from AY14 (which are financial years ending 31 December 2013 or later), a so called ‘fairness tax’ of 5.15% is levied on certain dividend distributions made by large Belgian companies or by foreign companies with a Belgian permanent establishment, when the underlying profits have not been effectively taxed due to tax losses or Notional […]

Update on recent VAT developments in Belgium

At the end of each calendar year, a number of important decisions that could have an influence on the VAT situation of your business are usually taken by government officials. Therefore please find below a recap of the most relevant decisions that have already been taken or have been launched for approval in Parliament. Change […]

Ine-Lejeune-2

At the end of each calendar year, a number of important decisions that could have an influence on the VAT situation of your business are usually taken by government officials. Therefore please find below a recap of the most relevant decisions that have already been taken or have been launched for approval in Parliament. Change […]

New budget measures following agreement of 30 June 2013

On 30 June 2013, the Belgian government has reached an agreement on the budget 2013-2014. The most important new tax measures that are announced in this respect are as follows: “Fairness tax” A “fairness tax” will be introduced for companies not paying any income taxes (due to tax deductions) while they distribute dividends. The rate would be […]

olivier-hermand-author

On 30 June 2013, the Belgian government has reached an agreement on the budget 2013-2014. The most important new tax measures that are announced in this respect are as follows: “Fairness tax” A “fairness tax” will be introduced for companies not paying any income taxes (due to tax deductions) while they distribute dividends. The rate would be […]

Draft Program Law of 3 June 2013 –Tax Measures following Budget Control

As expected – further to the Budget Control of March 2013 – a draft Program Law has been filed this week with the Belgian Parliament. The draft bill contains several important tax measures, especially regarding the withholding tax on dividends and liquidation bonus, as well as regarding the registration duties levied upon constitution of long-lease […]

olivier-hermand-author

As expected – further to the Budget Control of March 2013 – a draft Program Law has been filed this week with the Belgian Parliament. The draft bill contains several important tax measures, especially regarding the withholding tax on dividends and liquidation bonus, as well as regarding the registration duties levied upon constitution of long-lease […]

New Withholding Tax Exemption on Dividends paid by Belgian Institutional Investment Companies to Non Resident Investors

Existing Exemption: Public Investment Companies. As a recall, Art. 106, §7 of the Royal decree implementing the Belgian income tax code provides for a general withholding tax exemption on dividends distributed to non-resident investors by Belgian public investment companies (including real estate investment companies since the Royal decree of 27 December 2012), insofar those dividends […]

olivier-hermand-author

Existing Exemption: Public Investment Companies. As a recall, Art. 106, §7 of the Royal decree implementing the Belgian income tax code provides for a general withholding tax exemption on dividends distributed to non-resident investors by Belgian public investment companies (including real estate investment companies since the Royal decree of 27 December 2012), insofar those dividends […]

Budget Control 2013 – New Tax Measures announced

On March 29, 2013, the government has reached an agreement in the framework of the Budget Control 2013. Several new tax measures are announced in order to “award the loyalty of investors”, to “encourage the contribution to the capital of the companies” and to “increase their solvability towards the banks”. Please note that neither final […]

olivier-hermand-author

On March 29, 2013, the government has reached an agreement in the framework of the Budget Control 2013. Several new tax measures are announced in order to “award the loyalty of investors”, to “encourage the contribution to the capital of the companies” and to “increase their solvability towards the banks”. Please note that neither final […]

Belgian Tax reform

New withholding tax measures Within the framework of the 2013 budget agreement, new tax measures with respect to the Belgian withholding tax on movable income have been enacted in the Program Act of 27 December 2012. The new tax measures are applicable to dividends, interests and royalties attributed or made payable as from 1 January […]

philippe-vanclooster-author

New withholding tax measures Within the framework of the 2013 budget agreement, new tax measures with respect to the Belgian withholding tax on movable income have been enacted in the Program Act of 27 December 2012. The new tax measures are applicable to dividends, interests and royalties attributed or made payable as from 1 January […]

Belgian legislative changes to withholding tax

Over the last weeks, the legislator made some major changes to the withholding tax system. The latest tax measures have been implemented by the Act of 13 December 2012 and the Program Act of 27 December 2012 into the Belgian Income Tax Code (“BITC”). In addition, the Royal Decrees of 20 December 2012 and 27 […]

olivier-hermand-author

Over the last weeks, the legislator made some major changes to the withholding tax system. The latest tax measures have been implemented by the Act of 13 December 2012 and the Program Act of 27 December 2012 into the Belgian Income Tax Code (“BITC”). In addition, the Royal Decrees of 20 December 2012 and 27 […]