• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/1/2013

Belgium - Proposed legislative changes include withholding tax, VAT measures 

July 1: The Belgian government agreed, pursuant to budget control provisions for 2013 and the budget for 2014, to certain tax measures (which may be amended during the legislative process) including:
  • Introduction of a non-deductible special 5% “alternative minimum tax” or “fairness tax” on certain dividend distributions
  • Expansion of the 25% withholding tax on certain capital gains realized with respect to share repurchases in bond funds and mixed funds
  • Repeal of a tax credit for the 25% withholding tax imposed on Belgian investment companies with respect to dividends received
  • Imposition of a withholding tax rate at 1.69% on dividends distributed to foreign companies
  • Increased withholding tax rate of 25% (up from 15%) on dividends distributed to “intercommunales”
  • Imposition of value added tax (VAT) on services provided by lawyers
  • Increased excise duties on alcohol and tobacco

Read a July 2013 report prepared by the KPMG member firm in Belgium: Government reaches agreement about new series of tax measures

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