The Belgian NID rate for tax year 2016 (accounting years ending between 31 December 2015 and 30 December 2016, both dates included) would be 1.630%.
Currently, the NID rate (for tax year 2015) is 2.630%. Hence, the rate would decrease with 1%. For SMEs, the NID rate would be 2.130% for tax year 2016.
According to article 205quater, §2 of the Belgian Income Tax Code (“BITC”), the NID rate is calculated based on the average rates for straight line Belgian bonds on 10 year (index J) of the months July, August and September of the last but one year preceding the tax year. The rate is capped at maximum 3%.
Hence, for tax year 2016, (accounting years ending between 31 December 2015 and 30 December 2016, both dates included) the NID rate is based on the July, August and September bond rates of calendar year 2014. The average of these bond rates amounts to 1.562%. However, according to article 205quater, §3 BITC, the NID rate for one year can deviate maximum 1% point compared to the previous year. Hence, the NID rate for tax year 2016 would be 1.630% (2.130% for SMEs).
To the best of our knowledge, this NID rate has not yet been published in the Official Gazette or on the website of the Belgian tax authorities.
In case you have any further questions, do not hesitate to contact your PwC tax consultant.
