Tax Reforms Hub Belgium
Latest federal and regional tax measures
Scroll down for a summary and analysis of the latest tax measures put forward by the federal and regional governments, including the optional VAT on immovable rent (Optionele btw-heffing op onroerende verhuur | Taxation de la location immobilière à la TVA), the Corporate Tax Reform (hervorming vennootschapsbelasting | réforme impôt des sociétés), Summer Agreement (zommerakkoord | accord d'été), the Cash for Car measure (mobiliteitsvergoeding | allocation de mobilité), the Mobility Budget () and the Profit Premium Plan (Winstpremie | Prime bénéficiaire)
The government sets itself a very ambitious goal to create a shift in mobility behaviour by providing, what they feel is an alternative for the current company car schemes, with the aim for such alternative to be cost neutral for all parties involved.
The law of 30 March 2018 (Dutch | French) introduced the Mobility Allowance or the “Cash for Car” measure. The law has a broad scope of the measure covers social security legislation, personal income tax, labour law aspects and corporate tax. On 3 December 2018, a draft law (Dutch | French) was introduced to update the law of 30 March 2018.
- Deloitte report: Will the Mobility Allowance or “Cash for Car” be a valid alternative to the company car? (November 2018 update)
- Mobility budget approved by Council of Ministers (2 October 2017)
Optional VAT on immovable rent
The Belgian government has decided to introduce the option to subject immovable rent to VAT for projects as of 1 October 2018, adding a valuable alternative to exploit real estate in Belgium. The objective of the new regime is to provide companies flexibility in how they exploit their real estate, allowing landlords to deduct VAT on their investments.
- How will the option to subject immovable rent to VAT impact businesses? Which is the best approach to a company's needs?
Corporate Tax Reform
The corporate tax reform law (hervorming vennootschapsbelasting | réforme impôt des sociétés) of 25 December 2017 has been published in the Official State Journal on 29 December 2017 (Dutch | French). Note that a draft repair law was filed on 11 June 2018 with the House of Representatives and approved by the Finance Committee after first reading on 27 June 2018 (DOC 54-3147/004).
The corporate tax reform will be carried out in three separate phases:
Profit Premium Plan
The Program Law published in the State Journal of 29 December 2017 (Dutch | French) introduces an almost entirely new tax regime for Profit Premium Plans (Winstpremie | Prime bénéficiaire) replacing the existing regulation for Profit Participation Plans. The objective of the new regime is to improve employee purchasing power by introducing a simplified and even more attractive scheme.
- How does the new Profit Premium Plan fit into your variable pay Agenda? Which bonus plan fits best your company?
Summer Agreement 2017
On 26 July 2017, the Belgian federal government finalised the so-called “Summer Agreement” (Zommerakkoord | Accord d'été), which includes a series of tax measures aimed at (i) stimulating economic growth and job creation, (ii) reinforcing Belgium’s attractiveness for foreign investments, and (iii) achieving more “fairness” in taxation policy.
- New VAT rules for logistic service providers (23 November 2017)
- Belgian government unexpectedly abandons optional VAT on immovable letting (23 October 2017)
- Indirect Tax Legislation in the Pipeline (replay webinar of 7 September 2017)
- Employment Taxation Legislation in the Pipeline (replay webinar of 29 August 2017)
- Major measures put forward by the Corporate Tax Reform (26 July 2017)
- Tax measures relevant to individuals and employers (26 July 2017)
- Impact for High Net Worth Individuals and Families (26 July 2017) (text published by (Greenille by) Laga)