New Royal Decree published on legal constructions in EEA falling in the scope of the Cayman Tax
Cayman Tax The so-called ‘Cayman Tax’, introduced as from 1 January 2015, is a taxation regime in the Belgian income tax code that introduces a tax transparency of certain legal constructions that have been set up by Belgian private individual tax residents. The income of certain qualifying entities will be taxed directly in the hands
The Belgian Ruling Office has granted a decision on the new CFC regime
Last week, the Belgian Ruling Office granted an advanced tax decision (not published yet) recognising the non-application of the upcoming Belgian CFC (‘Controlled Foreign Company’) law for two foreign companies owned by a Belgian parent company. Salient points of this decision This advance tax decision covering the inapplicability of the CFC regime is of particular
The mobility allowance is already being revised
As from 1 January 2018, it is possible for employees to exchange their company cars for a mobility allowance – the so called ‘cash for cars’- which is subject to a beneficial social security & income tax treatment (see our newsflash of 25 May 2018). Now, after a short evaluation period, the Belgian Federal Government
Company provided housing: anticipated change in tax law
When a company puts a house or an apartment at the disposal of one of its directors or employees, a taxable benefit in kind arises in the hands of the beneficiary. Typically, the calculation of this benefit in kind depends on whether the housing is provided by an individual (100/60 x indexed cadastral income) or
Mobility budget – Agreement within the Council of Ministers
In March 2018, the government reached an agreement on the principles of the mobility budget. Meanwhile, this agreement was formed into a preliminary draft of law, which was approved by the Council of Ministers on 26 July 2018. The mobility budget will co-exist with the recently introduced mobility allowance. Both measures aim to reduce the
Summer deal advances the implementation of the Belgian EBITDA rule by one year
In the context of its comprehensive political agreement reached last week, the Belgian Government decided to advance the implementation of the new interest limitation rule from 2020 to 2019 (i.e. financial years starting on or after 1 January 2019). The new Belgian interest limitation rule is the transposition of the EBITDA-based interest limitation rules included by
Expected changes in employers’ tax reporting obligations of some equity incentives
When foreign headquartered companies grant stock options to employees of their Belgian subsidiaries, such option grants, where taxable at grant, are ALWAYS reportable by the Belgian employing subsidiary on the employee’s individual statement 281.10. This reporting obligation is due irrespective of whether such subsidiary is involved in the option grant or expenses the stock option
Last steps in the Belgian corporate tax reform taken before the summer recess
Just before the holiday period, the Belgian Chamber adopted the final text of the corporate tax reform that was initiated last year. As expected, a new Act amends and supplements the Corporate Income Tax Reform Act and the Program Act, both published end of December 2017. Some of the very last changes introduce new anti-abuse
