Companies/branches can make a first advance tax payment for the ongoing financial year by 10 April 2018 (in case of FY per 31/12).
For assessment year 2019, the global surcharge has increased to 6.75% (compared to 2.25% for assessment year 2018). This surcharge will always be due. The prior year tolerance – relating to the fact that no surcharge would be due if it is lower than 0.5% of the taxable amount on which basis it is calculated or if it is lower than EUR 80 – has been abolished.
When a company/branch makes advance tax payments, the surcharge can be avoided as credits will be granted, depending on the timing of the advance tax payments. For assessment year 2019, credits are calculated by multiplying the amount of the advance tax payment with 9%, 7.5%, 6% or 4.5%.
As from assessment year 2019 (companies with a financial year starting 1 January 2018) and following, Belgian companies/branches will also need to take into account the measures implemented by the tax reform. For assessment year 2019, this includes amongst others the new sequence of deductions, the tax attributes limitation (‘basket system’, which will lead to a minimum taxable basis if the latter amount exceeds EUR 1 mio) and the new calculation method of the notional interest deduction and dividends-received deduction.
We therefore strongly advise you to calculate and optimise the advance tax payments relating to assessment year 2019.
Should you require additional information on the advance tax payment system in Belgium or should you like to optimise your advance tax payments in 2018, please contact your local PwC contacts. They’ll be happy to discuss and support you.