- Notional interest deduction: the maximum rate is reduced to 3% (for SMEs: 3,5%). The transferability will be abolished (for now the deduction can be transferred to the next 7 taxable periods) and the utilization of the deduction transferred in the past will for each taxable period be limited to 60% of the taxable base.
- Introduction of a thin cap rule: interest will no longer be deductible to the extent that a certain proportion between debt and equity is exceeded.
- The corporate tax exemption of capital gains on shares will be subject to the condition that the shares are held for at least 1 year. Non-exempt capital gains will be taxed at a rate of 25%.
- For the deduction of group insurance contributions (80%-rule) a wage ceiling will be introduced.
- Internal pension provisions must be externalized within a period of 3 years. The externalized stock will be taxed at a rate lower than the normal rate of 4,4% on group insurance premiums.
- Movable withholding tax: the rate will be increased to 21%. An additional crisis contribution of 4% will be levied on movable income in excess of 20.000 EUR (thus at a rate of 25%). What is already taxed at a rate of 25% remains taxed at 25%. Liquidation gains remain taxed at a rate of 10%. Nothing will be changed to the exemption of movable withholding tax on savings accounts.
- The benefit in kind of a company car will be calculated depending on the CO2-emission (as is already the case) and the catalogue value of the car.
- The standard rate for the lump-sum valuation of stock options will be increased from 15 to 18%.
- The valuation of benefits in kind for company directors (heating, electricity and having a private dwelling at one’s disposal with a deemed net rental value exceeding 745 EUR) will be adjusted.
- The deductible expenses will be transformed into tax reductions at a rate of 45% (deduction for own dwelling, children’s day care, donations) or 30% (for the rest).
- The taxation of pension capitals constituted by employer contributions will be increased from 16,5 to 20% (upon retirement at 60 years) and 18% (upon retirement at 61 years). The tax reductions for pensions that are calculated at the average tax rate will be calculated at a rate of 30% for all taxpayers.
- A tax is introduced on the conversion of bearer securities into dematerialized securities (1% for conversions in 2012, 2% for conversions in 2013 and 3% for conversions de jure at the end of the conversion period (end of 2013)).
- The VAT on pay TV will be increased from 12 to 21%. The exemption of VAT for notaries and bailiffs will be abolished.
- The rates and ceilings of the stock exchange tax will be increased by 30%.
This overview is subject to further information. Details of the agreement still have to be elaborated. KPMG Tax Advisers plans to hold a seminar about the tax measures on Monday December 12, 2011 (in Brussels) and Thursday December 15, 2011 (in Antwerp). An official invitation will follow soon. We expect to have more details by then.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received, or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.