• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 5/22/2013

Belgium - Tax legislative proposals in budget follow-up 

May 22: Draft legislation now provides more details concerning the tax measures as agreed to by the Belgian government at the end of March 2013 in the “budget follow-up.”

Among the provisions—which could be subject to change during the legislative process—are proposals that would:

  • Not allow a “double use” of a dividend received deduction and a notional interest deduction
  • Impose a withholding tax at a rate of 25% on the amount of paid or attributed liquidation gains, but impose a withholding tax at a rate of 10% on a company’s distributed tax reserves, provided that the amount received is immediately incorporated into capital
  • Reduce the rate of withholding tax on dividends related to new shares in small and medium size enterprises (SMEs)
  • Increase the fixed amount of registration duty (i.e., the fee for registering deeds, etc.) from €25 to €50
  • Increase the excise tax on tobacco products

Read a May 2013 report prepared by the KPMG member firm in Belgium: “Update" Budget control – more details available on tax measures

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