Belgian tax reform reduces corporate rate to 25% and introduces fiscal consolidation
On 26 July 2017, the federal government reached an agreement on an important tax, economic and social reform package. A significant gradual reduction in the corporate income tax rate to 25% in 2020 and fiscal consolidation are key components of the package. The agreement preserves the notional interest deduction. The tax reform is built around
Belgium decides to reduce corporate tax rate from 34% to 25%
Remark: The following announced measures will have to be formalised in draft legislation which should only be available as from September/October. Only then will full details be known. On 26 July 2017, the Federal government reached an agreement on an important corporate tax reform, significantly reducing the corporate tax rate. More details will follow below.
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An extension until 30 June 2015 has been granted for reporting direct pension promise contracts to DB2P
As an employer/a company, you are liable to report your internal individual pension promises into the database DB2P, which is managed by Sigedis. This “declaration” must be made online before 30 June 2015 (the initial deadline was 31 December 2014). Reporting these pension promises late or incorrectly puts their tax deductibility at risk. This concerns
Direct pension promise contracts need to be reported to DB2P before 31.12.2014
In 2006, the Belgian legislator decided to create a database for second pillar pensions (called ‘DB2P’). Information gathering started in 2011. DB2P will be fully operational soon. Pension institutions have a reporting obligation to DB2P with regard to all occupational pension schemes managed by them. This mandatory communication includes a recurrent upload of individual pension
Notion of ‘vesting or payment’ of second-pillar complementary pensions aimed at being clarified by Practice Note
Article 64 of the Program Act of 22 June 2012 (B.S. 28.06.2012) has changed the tax rates applicable to lump-sum payments and surrender values of employer or company-sponsored pensions (i.e. second-pillar complementary pensions). The tax efficiency related to these types of pension plans results from the advantageous tax rates applied to deferred income. Depending on the beneficiary’s
Accumulation of a statutory pension and a professional activity
On 1 July 2013, the program law of 28 June containing various tax and financial measures was published in the Official Gazette. This program law includes a change in the rules on accumulation of a statutory pension with own professional income (i.e. earned income). As in previous years, accumulation of an old-age pension or a
Update regarding the special contribution payable on high pension contributions (the so-called ‘Wijninckx bijdrage’)
To recall, if the total of contributions paid into occupational pension plans for one person exceeded EUR 30,000 in 2011, the company has to pay a special contribution of 1.5% on the excess amount. This charge is due both for employees and for self-employed company directors. For employees, the special contribution has to be reported
