Notional interest deduction rate for tax year 2019 is 0,746%
The Belgian notional interest deduction (NID) rate for tax year 2019 (accounting years ending between 31 December 2018 and 30 December 2019, both dates included) would be 0,746%. For SMEs (Small and Medium-sized Enterprises), the NID rate would be 1,246% for tax year 2019. According to article 205quater, §2 of the Belgian Income Tax Code
Non-application of NID to foreign permanent establishment and real estate
The Belgian tax authorities have recently issued a practice note with regard to the Belgian notional interest deduction (‘NID’) and the possibility for the taxpayer to file a tax claim or request an ex officio tax relief. Companies subject to Belgian (non-resident) corporate income tax may deduct a notional interest reflecting the economic cost of
Belgian Law not EU compliant in relation to Downward PE adjustment to the Notional Interest Deduction basis
Under the notional interest deduction (hereafter “NID”) regime, Belgium introduced a sui generis corporate tax deduction, i.e. Belgian corporate income taxpayers are for tax purposes allowed to claim a NID reflecting the economic cost of the use of capital, equal to the cost of long-term, risk-free financing. In practice, the NID is equal to the
New budget measures following agreement of 30 June 2013
On 30 June 2013, the Belgian government has reached an agreement on the budget 2013-2014. The most important new tax measures that are announced in this respect are as follows: “Fairness tax” A “fairness tax” will be introduced for companies not paying any income taxes (due to tax deductions) while they distribute dividends. The rate would be
Draft Program Law of 3 June 2013 –Tax Measures following Budget Control
As expected – further to the Budget Control of March 2013 – a draft Program Law has been filed this week with the Belgian Parliament. The draft bill contains several important tax measures, especially regarding the withholding tax on dividends and liquidation bonus, as well as regarding the registration duties levied upon constitution of long-lease
Budget Control 2013 – New Tax Measures announced
On March 29, 2013, the government has reached an agreement in the framework of the Budget Control 2013. Several new tax measures are announced in order to “award the loyalty of investors”, to “encourage the contribution to the capital of the companies” and to “increase their solvability towards the banks”. Please note that neither final
Belgian Tax reform
New withholding tax measures Within the framework of the 2013 budget agreement, new tax measures with respect to the Belgian withholding tax on movable income have been enacted in the Program Act of 27 December 2012. The new tax measures are applicable to dividends, interests and royalties attributed or made payable as from 1 January
