Notional interest deduction rate for tax year 2018 is 0,237%
The Belgian NID rate for tax year 2018 (accounting years ending between 31 December 2017 and 30 December 2018, both dates included) would be 0,237%. For SMEs (Small and Medium-sized Enterprises), the NID rate would be 0,737% for tax year 2018. According to article 205quater, §2 of the Belgian Income Tax Code (“BITC”), the NID
Country-by-Country Reporting approved, Anti-Tax Avoidance Directive vote postponed
On 25 May 2016, the EU Economic and Financial Affairs Council (ECOFIN) approved the implementation of the Country-by-Country Reporting (CbCR) rules for multinational companies. However, the vote on the Anti-Tax Avoidance Directive (ATAD) proposal of the European Commission was postponed to the next council’s meeting, taking place on 17 June 2016. The directive implementing the
Preparing your business for imminent new reporting obligations
Belgian entities of foreign- or Belgian-headquartered multinational groups with annual revenues exceeding 50 million euros need to assess whether they will be subject to the transfer pricing documentation obligations that will be introduced soon. Given the increased scrutiny, it’s also imperative to check the consistency of transfer pricing arrangements with actual conduct. Three layers of
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
Final list of tax havens published
On 10 and 11 March 2016, the final Royal Decrees regarding the revised list of tax havens that apply for the so-called dividends received deduction (‘DRD’) and the reporting obligation for payments (to tax havens) have been published in the Belgian Official Gazette. The Royal Decrees did not make any changes to the lists included in
EU Member States reach agreement on mandatory automatic exchange of financial information on country-by-country reporting (CbCR)
On 8 March 2016, the Member States of the European Union reached a political agreement on the automatic exchange of country-by-country reporting (CbCR) at a meeting of the Ministers of Economic and Financial Affairs in Brussels. The CbC reports contain tax-related financial information of multinational companies. The agreement is, however, still subject to the scrutiny
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
IFRS 16 – Leases Standard
The International Accounting Standards Board (‘IASB’) announced a new leasing standard that will come into effect on 1 January 2019 (earlier application permitted for accounting periods ending on or after 1 January 2017). This new standard requires lessees to recognise nearly all leases– with an exemption for short-term and low-value asset leases – on the
