Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 11/20/2012

Belgium - New tax measures in budget agreement 

November 20:   Initial reports from Belgium indicate that the federal government has reached an agreement on the Budget for 2013, and that it will include the following corporate, withholding, and indirect tax measures.

Corporate tax

  • Notional interest deduction – Unconfirmed reports indicate that the calculation of the rate of the notional interest deduction (NID) for 2013 (assessment year 2014) will be based on the average 10-year government bond (OLO) rates in the third quarter of 2012—instead of the entire year 2012—resulting in a NID rate for 2013 of 2.742% (+0.5% for SMEs)
  • Capital gains tax - Capital gains on shares (which are now exempt for corporate tax purposes) will be subject to a separate tax of 0.4% (+3% crisis contribution) as from 2013. The tax is not deductible for corporate tax purposes.

Withholding taxes

  • Movable withholding tax - The rate will be increased from 21% to 25%. Liquidation proceeds will remain taxed at 10%. The withholding tax will again be final in principle. The mandatory reporting of movable income in the tax return and communication of information to a central contact point will be repealed.
  • Dividends paid by real estate investment companies (Sicafi - Vastgoedbevaks) will be subject to a withholding tax of 15%.
  • The wage withholding tax on temporary unemployment benefits will be increased.

Miscellaneous

  • Insurance tax on premiums paid in branch 21 and 23 - Increase from 1.1% to 2%
  • Excise duties - Increase of excise duties on tobacco and on wine

Read this November 2012 report prepared by the KPMG member firm in Belgium:
New tax measures in Budget 2013




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