Draft bill – various tax and financial measures

Nicolas de Limbourg 23 July 2012


Draft bill – various tax and financial measures

Recently, the government approved a draft bill laying down various tax and financial provisions. The proposed measures constitute a part of the budgetary action agreed by the Government and can be summarised as follows:

  • Simplification of the Belgian personal tax system: deductible expenses will become tax reductions.
  • Tax relief for expenses to secure a home against burglary or fire. The relief is split based on the taxable income of each spouse/partner (tenant or owner).
  • There are changes to the tax treatment of capital gains on shares in the case shares purchased from collective investment institutions. In order to qualify for a tax exemption, only up to 25% (previously 40%) of the collective investment institution’s equity can be invested in debt claims. Furthermore, the tax exemption will be extended from all EU countries to all countries in the European Economic Area.
  • Compensation received for installation of mobile phone masts are taxed as miscellaneous income at a fixed tax rate of 15%.
  • It will be clearly stated that, in accordance with EU rules, Belgian municipal (local income) taxes do not apply to personal income tax on dividend and interest income.
  • Various corrections/changes to the provisions on the tax treatment of non-residents in Belgium.
  • Transfer of investment deduction: when an investment asset is transferred to a new owner, the relative investment deduction is also transferable to the new owner, provided he meets the legal conditions.

The tax bill still has to be tabled before parliament.