The benefit in kind resulting from the private use of a company car is, as from 1 January 2012, calculated in function of the catalogue value and the CO2 emission based on the following formula:
Benefit in kind = 6/7th x catalogue value x C02 coefficient
The catalogue value corresponds to the invoiced value, options and VAT included, without taking any discounts, reductions, rebates or refunds into account. The government now clarifies that this is only applicable in case of an acquisition in new condition.
In all other cases, the catalogue value is defined as follows: the catalogue price of the vehicle in new condition in case of a sale to a private individual, options and VAT included, without taking any discounts, reductions, rebates or refunds into account.
The catalogue value will be adjusted in function of the age of the vehicle. Starting as from the date of the first registration of the vehicle at the “Service for Registration of Vehicles” (DIV), the catalogue value will be multiplied by a factor:
| From 0 to 12 months
| From 13 to 24 months
| From 25 to 36 months
| From 37 to 48 months
| From 49 to 60 months
With regard to the wage withholding tax, this ageing coefficient will only be applicable as from 1 May 2012.
The corporate tax exemption of capital gains on shares will as from assessment year 2013 be subject to the additional condition that the shares were held in full ownership for an uninterrupted period of at least one year. In case this condition is not fulfilled, the capital gains will be taxable at a rate of 25%.
Capital gains realized by companies subject to the accounting decree for banks and investment entities, on securities that are part of their trading portfolio, will be taxable at the normal tax rate of 33,99%. Write-offs and capital losses on these securities are fully deductible.
The deduction of interest on loans will be disallowed in case, and to the extent of the excess, the total amount of these loans is higher than five times the sum of the taxed reserves at the beginning of the taxable period and the paid-up capital at the end of this period.
The deduction limitation is applicable if the beneficial owners of the interest
- are established in a tax haven; or
- are part of a group whereto the debtor belongs.
The term “loans” does not include bonds issued by public offering and loans granted by financial institutions.
The beneficial owners of the interest will be deemed to be established in a tax haven if they are not subject to income tax or, in respect of that interest income, are subject to a substantially more favorable tax regime than the Belgian common tax regime.
The term “group” refers to the whole of affiliated companies within the meaning of article 11 of the Companies Code.
In case of loans guaranteed or eventually funded by third parties, the latter will be deemed to be the beneficial owners of the interest of the loan, if that guarantee or funding has tax avoidance as its main purpose.
The thin cap rule is not applicable to loans contracted by:
- companies engaged in movable leasing and companies with factoring or real estate leasing as their main activity, and this within the financial sector and to the extent that the sums borrowed are effectively used for leasing and factoring activities;
- companies of which the main activity consists of the execution of a public-private partnership project won by public tender.
Entry into force: date of publication of the program law in the Belgian Official Gazette.
The general anti-abuse provision as laid down in article 344, §1 BITC 1992 and article 18, §2 Registration Tax Code will be rewritten: the qualification given by parties to a legal act or a series of legal acts establishing one single transaction, cannot be opposed to the tax authorities, if the latter determines that the transaction is executed based on tax considerations, which can suggest that this transaction has tax avoidance as its main purpose. It will be up to the taxpayer to prove the contrary. When not succeeding in this proof, the tax authorities will be allowed to redefine the given qualification, such that a set of facts is established which allows a correct taxation, even though the legal consequences are not identical or similar.
Entry into force: 10 days after publication of the program law in the Belgian Official Gazette (art. 344, §1 BITC 1992) or legal acts conducted as from 1 January 2012 (art. 18, §2 Registration Tax Code).
Payments in cash will be limited to EUR 5.000 (opposed to EUR 15.000 previously) and, as from 1 January 2014, to EUR 3.000. The limitation will also be applicable to services.
Entry into force: 10 days after publication of the program law in the Belgian Official Gazette.