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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)

Urban mobility

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.

Mobility Allowance

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.

Mobility Budget

After the Mobility Allowance or the “Cash for Car” measure, the government submitted plans (Dutch | French) to create a second alternative to the company car, the Mobility Budget. 

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.

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.

 

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.

Previous reforms

Budget 2017

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2016 Tax Measures

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Budget 2016

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Tax shift 2015

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Budget control 2015

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Budget 2015

English | Dutch | French

Belgian government agreement 2014

English | Dutch | French

Flemish government agreements 2014

English | Dutch

Walloon government agreements 2014

English | French

Brussels government agreements 2014

English | Dutch | French
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