Belgium

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  • Service: Tax & Legal
  • Type: Business and industry issue
  • Date: 02/01/2013

Fiscal measures program-law of 27 December 2012 

Approved at the end of the month of December 2012, the program-law of 27 December 20121 introduces a first part of the fiscal measures decided by the federal government within the framework of the budget 2013. Please find hereafter a preview of the most important measures.

Corporate tax: taxation of capital gains on shares
The program-law introduces a new tax on capital gains on shares.


The companies that are not considered as small companies in the meaning of article 15 of the Companies' Code will be subject to a separate taxation of 0,4% on the capital gains realized on shares :

 

  • Of which the dividends fulfill the qualitative conditions for the “Dividends Received Deduction”;
  • That the company holds for an uninterrupted period of minimum one year.

 

Note that no deduction of previous losses, notional interest deduction, investment deduction, etc. nor compensation with the current year’s tax losses can be made on such capital gains.


Tax on capital gains on shares – summary table (assessment year 2014)2

 

  • Small companies (art. 15 Companies' Code)

Qualitative conditions

 OK

 OK

 NO

 NO

Holding period of min 1 year

 OK

 NO

 OK

 NO

 

 ↓

 ↓

 ↓

 ↓

Tax rate*  Exemption  25%  Normal rate  Normal rate

 

  • Other companies
 Qualitative conditions

 OK

 OK

 NO

 NO

 Holding period of min 1 year

 OK

 NO

 OK

 NO

 

 ↓

 ↓

 ↓

 ↓

Tax rate*  0,4%  25%  Normal rate  Normal rate

 

*to be increased with the crisis contribution of 3%


This measure will be effective as from assessment year 2014. Any amendment made as from 21 November 2012 to the closing date of the financial year will have no effect on the application of this measure.


New adaptations to the fiscal regime of movable income approved
The rate of the movable withholding tax is increased to 25% for most of the movable incomes (for exceptions, see the summary table below).


The supplementary contribution of 4% for certain movable income is abolished and the movable withholding tax has regained its final character with respect to interests and dividends.


Rate of the movable withholding tax

 

Movable withholding tax  Income

 10%

Liquidation bonuses.

 15%

The non-exempted part of the interests on regulated savings accounts (i.e. the part that exceeds 1.880 EUR)

 15%

Interests on government bonds subscribed to between 24/11/2011 and 02/12/2011 and issued on 04/12/2011 (“Leterme government bond”)

15%

Dividends of SICAFIs.3

15%

Author rights below the ceiling of 56.450 EUR (note that the declaration of these revenues is obligatory).

25%

Other movable income.

 

These rates are applicable for income paid or attributed as from January 1, 2013.


The law also contains a number of changes to the obligation to declare income paid or attributed in 2012. When the movable withholding tax and, if applicable, the supplementary contribution of 4% are wittheld at source and the taxpayer declares not having received income eligible for the contribution of 4%, no further declaration is required.


Increase of the taxation on insurance contracts
The rate of the tax on contributions of individual life insurances is increased from 1,10% to 2%.


An exception is made for insurance contracts covering the balance remaining for which the rate of 1,10% has been maintained (the insurance contract should guarantee a mortgage loan concluded for the acquisition or retention of an immovable property).


This measure is applicable on contributions paid as from January 1, 2013.

 

 

 

1 Belgian Official Gazette of 31 December 2012
2 This table does not relate to the capital gains on shares realized by trading companies.
3 The requirements that a SICAFI has to meet to qualify as a real estate-SICAFI are strengthened: from now on, their investments in residential real estate have to consist of at least 80% of all their investments. This threshold of 80% will only be applicable, as from 2015, for real estate-SICAFIs of which the dividends have benefited from the exemption of movable withholding tax under the application of the current threshold of 60%.

 

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