Constitutional Court Writes Obituary for Fairness Tax

The Belgian Constitutional Court has annulled the so-called fairness tax, abiding by a judgement of the Court of Justice of the European Union, from which the Constitutional Court had sought a preliminary ruling. However, contrary to what most observers had hoped, the Constitutional Court’s ruling does not cancel the tax retroactively, except in one specific situation. For more, read the …

Belgium Reaches Agreement on Budget

In the early hours of October 15, Belgian Prime Minister Charles Michel announced that his government had found an agreement on the 2017 budget. The three topics that were at the centre of the budget discussion — an in-depth reform of the corporate tax, a capital gains tax for individuals, and new measures to channel savings into the economy — have …

‘20 Percent for 2020’: A Scenario for Belgium’s Corporate Tax Reform

Caterpillar, a U.S. multinational corporation, recently announced its intention to close its plant in Gosselies, Belgium, where it manufactures heavy machinery. While the news was not unexpected, it still came as a shock to the 2,200 employees who will lose their jobs. In 2013, 1,400 jobs were lost in a restructuring. Walloon Minister-President Paul Magnette said he was shocked and …

Belgium Abolishes Patent Box, Introduces Innovation Box

Apart from the correction of a piece of legislation introduced at the end of last year (following Tate & Lyle), Belgium’s recently published Act of August 3, 2016, deals mainly with the abolition of the patent box, which provides an 80 percent deduction of patent income related to the development or enhancement of patents. To read more, click here.

A new Tax Regime for the Diamond Sector

Belgium’s controversial diamond regime, which the European Commission announced was in line with state aid rules, will enter into force for tax year 2017. Belgium’s July 24, 2015, program law introduced a special tax regime for diamond traders, in which they will pay tax on 0.55 percent of their turnover rather than on the actual profits from their diamond trading …

New Tax Measures under the Programme Law

The Programme Law of July 1 introduced a number of fiscal measures, including transfer pricing documentation in line with action 13 of the OECD’s base erosion and profit-shifting project and measures to combat tax fraud. To read more, click here.

Belgium introduces Transfer Pricing Documentation

Apart from the new tax regime for the sharing economy, the Programme law of 1 July 2016 (Belgian State Gazette 4 July 2016) introduced a number of other fiscal measures, including provisions that introduce transfer pricing documentation in line with Action 13 of the OECD’s BEPS project and other budgetary measures, including measures to combat tax fraud. The Law implements …

Belgium Extends Reporting of Payments to Tax Havens

Since 2010 Belgian companies and permanent establishments of foreign companies must report in their annual tax return all (direct and indirect) payments they have made to tax havens (art. 307 ITC 1992) for a total of EUR 100,000 or more. If they are not reported, these payments are not tax deductible. When reported, such payments are only tax deductible if …

Belgium updates list of tax havens

In two Royal Decrees dated 1 March 2016 (published in the Belgian State Gazettes of 10 and 11 March 2016), the Minister of Finance has updated the list of countries which are deemed to have an advantageous tax regime. The first list relates to the participation exemption, the basis for the Belgian holding company regime. One of the conditions for the participation …

Belgium lists Luxembourg and Cyprus as tax havens …

… but says not to take it too seriously. The tax authorities have published an addendum to their practice note Ci.RH.421/607.890 (AAFisc nr. 64/2010) to comment on the list of states that have not effectively or substantially implemented the OECD exchange of information standard. Since 1 January 2010 Belgian companies and permanent establishments of foreign companies must report in their …