Update of the Belgian EBITDA rule provides opportunities for infrastructure and energy sector
Recently the Belgian legislator published a Royal Decree containing some clarifications on the repair law of 20 December 2020 containing changes to the 30% EBITDA rule. As mentioned in our previous Newsflash of 6 January 2021, the Belgian legislator published on 20 December 2020 new legislation in order to address criticism of the European Commission
Circular containing technical clarifications regarding the 30% EBITDA rule
On 10 July 2020 a new Circular letter was published regarding the 30% EBITDA regulation (Dutch/French version).The Circular is intended to provide some additional clarifications on remaining ambiguities on the 30% EBITDA regulation, as contained in Article 198/1 BITC 92 and Article 73 RD/BITC. These clarifications are highly technical in nature and underscore again that
Filing your Belgian corporate income tax return and local form – general due date of 24 September 2020
Have you considered the impact of the new 30% EBITDA-rule? Belgian companies (and non-resident companies with a Belgian establishment) have the yearly obligation to file a Belgian (non-resident) corporate income tax return within the statutory deadline. In principle -in case of a financial year that ended per 31 December 2019- this tax return (linked to
Royal decree regarding significant changes on 30% EBITDA rule approved
On 10 December 2019, the draft repair act containing various changes to the 30% EBITDA rule has been withdrawn from the chamber leaving taxpayers in uncertainty on the application of the rule. However on 27 December 2019, a Royal Decree related to the 30% EBITDA rule has been published. The Royal Decree includes some of
Important update – Draft bill impacting 30% EBITDA rule delayed
The draft bill containing various modifications to article 198/1 BITC 92 (i.e. 30% EBITDA rule), has been removed from the agenda of the Finance Commission. Therefore it is unrealistic that these modifications will be adopted before year-end. The modifications included in the draft bill – and which are hence not adopted – include the allocation of
Draft bill involving significant changes on 30% EBITDA rule
On 26 November 2019, a draft bill containing various tax provisions was submitted to the Belgian Chamber of Representatives. Several upcoming changes are related to the interest deductibility limitation (i.e. 30% EBITDA rule) which was introduced in the 2017 corporate income tax reform and applicable as of 1 January 2019 (assessment year 2020). If enacted,
Circular Letter regarding the “grandfathering” provision included in 30% EBITDA rule
On 11 September 2019, the Belgian tax administration published a Circular Letter regarding the grandfathering provision that is included in the recently introduced interest deductibility limitation (i.e. 30% EBITDA rule). The 30% EBITDA rule includes a grandfathering provision for loans that have been issued before 17 June 2016 and that have not been “fundamentally modified”
2019 implementation of Belgian 30% EBITDA rule approved
On 31 January 2019, the Chamber approved the advancement of the implementation date of the new interest limitation rule (30% EBITDA rule). The law will become effective after it is signed by the King and published in the Official Gazette. Concretely, this means that the Belgian 30% EBITDA rule will enter into force retroactively as from