COVID-19 update: Circular letter on exemption conditions for write-downs on trade receivables
Aware of the significant impact of the pandemic on the economy, the Belgian tax authorities have very recently published an updated circular letter on the exemption conditions for write-downs on trade receivables (Circular 2020/C/45 dated 23 March 2020). In this circular letter, the tax authorities acknowledge the spread of the Covid-19 virus and the drastic
Winter is coming – holiday gifts to employees
Old Man Winter is knocking at the door and the first Christmas trees are beginning to pop up, marking the perfect occasion to recall the possibility to present employees with year-end holiday gifts – free from social security contributions and income taxes. General principles According to the Belgian social security legislation, gifts in kind, cash
Withholding tax evasion and avoidance: new measures announced
Last Friday, the Belgian Council of Ministers approved a draft bill of law aimed at fighting several situations of Belgian WHT (Withholding Tax) evasion and avoidance. The purpose of the new rules is to tackle improper WHT exemptions or refunds and facilitate the recovery of WHT in such cases. In a nutshell In a communication
The cost-sharing VAT exemption is not for financial services, says EU Court
In brief The Court of Justice of the European Union (CJEU, “the Court”) released its decisions on 21 September 2017 in three cases (Aviva, C-605/15, DNB BANKA, C-326/15 and Commission v Germany, C-616/15), relating to “independent group of persons (IGP)” (also referred to as the cost-sharing VAT exemption). In these three cases, the central question
New double tax treaty signed between Belgium and Japan
On 12 October 2016, the new Belgium-Japan Income Tax Treaty was signed in Tokyo during the Belgian economic mission. Once in force and effective, the new treaty will replace the old Belgium-Japan Income Tax Treaty (1968) as amended by the protocols signed in 1998 and 2010. The treaty will enter into force 30 days after
VAT exemption for intra-Community supplies: Transport document can be replaced by destination document
In order to apply the VAT exemption for intra-Community supplies in Belgium (article 39bis of the Belgian VAT Code), Belgian VAT authorities require the supplier (amongst others) to obtain and keep a set of commercial documents that the goods have been transported from Belgium to another Member State. Suitable evidence includes contracts, purchase orders, transport
Belgian withholding tax on interest income paid to foreign investment companies: exemption enlarged
Following an infringement procedure initiated by the European Commission several years ago, Belgium has finally amended its regulation regarding the perception of withholding tax on Belgian-source interest on debt claims and debt securities made or allocated to investment companies established abroad in another Member state of the European Economic Area. Belgian and foreign investment companies
Belgian R&D tax exemption for Young Innovative Companies no illegal state aid Commission says
On 23 January 2015, the European Commission finalised its investigation of the tax incentive for innovative companies which aimed at encouraging R&D activities of new small companies in Belgium under the EU state aid rules. According to the Commission, this tax system complies with the EU state aid rules and can thus be maintained. Note
