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Walloon Government Agreement 2014

Announced regional tax measures

Last updated 19 September 2014

The Walloon Government's 23 July 2014 agreement on possible regional tax measures contains, among others, the following two objectives:

  • Avoid new taxes on individuals and enterprises
  • Maintain attractive tax framework for enterprises

The below is an overview of the announced tax measures with which the regional Government hopes to improve the tax system and economic engine in Wallonia. The information is obtained from the official agreement.

At this stage, no further detail other than what is specified below is available.

BUSINESS TAX

 
  • Start dialogue with federal government to introduce tax shelter regime for sports infrastructure
Start dialogue with federal government to introduce tax shelter regime for sports infrastructure
Start dialogue with federal government to introduce tax shelter regime for sports infrastructure
Start dialogue with federal government to introduce tax shelter regime for sports infrastructure

Tax shelter

INDIVIDUAL TAX

  • Maintain rules and price of service vouchers
  • Maintain housing bonus for existing mortgage loans; stabilisation of amounts eligible for bonus but no longer possible to extend benefit beyond initial loan term
  • Negotiate with federal government a financial intervention in the cost of housing of a student, such as a tax reduction
  • Consultation to put in place a new mechanism supporting access to family dwelling that is attractive for buyers (focus on first years of mortgage loan) and acceptable for public finances

Tax reductions

 
 
  • Encourage owners of non-occupied buildings to transform them into houses by creating, amongst others, tax incentives for real property withholding tax purposes

Immovable income

INDIRECT TAXES

  • Facilitation of access of youngsters to become owner of house by additional loans financing last tranche of purchase price (registration duties included), which in fact boils down to delayed payment of registration duties
  • Examine possibility to reinforce progressivity of registration duty rates in function of value dwelling purchased and taking into account “real estate pressure” of area where dwelling is located and risks of competition with neighbouring regions or countries (budget-neutral)
  • Examine specific tax treatment for restauration of classified goods/estate

Registration duties

  • Integrate environmental criteria in consultation with other regions in annual road tax and traffic entry road tax, while not penalising citizens who lack means to buy new or less polluting car
  • No mileage tax for light vehicles (cars, motorbikes, …)
  • Implementation with other regions of decision to introduce mileage tax for trucks +3.5 tons
  • Deposit or any other equivalent recovery mechanism for aluminium cans and any other publicly abandoned packaging

Environmental taxes

 
  • Maintain VAT exceptions for public service
  • In favour of European financial transactions tax
  • Adjust communal tax on non-occupied houses by providing for a fixed minimum rate absent clear intention owner to put house on rental market (except Act of God)

Other indirect taxes

OTHER MEASURES

  • Simplify and rationalise employment aid around limited number of oriented and efficient tools (coherent with economic incentives and federal initiatives)
  • Market sector: focus on young employees, most enabling economies and (very) small and medium-sized enterprises, and more generally the persons who are the most fragile, least qualified on the labour market (namely disabled persons)
  • Young employees: amongst others, reinforce targeted measure for young employees who start their first professional experience: if he/she does not have degree of higher education, then 0% social contributions during certain period, which is longer the more youngster is unqualified and reduces over time
  • Non-profit / public sector: analyse opportunity to convert certain aids in sector aids, limit for new entries multiple access to reduction of social contributions
  • Identify modalities of softening salary cost together with federal government & regions

Salary cost reduction

  • Administrative simplification for enterprises
  • Develop one single tax return for all local taxes on individuals and enterprises and permit global payment, split into different tranches
  • Simplify and ensure readability of local taxes

Simplification

 
  • In all commercial & promotion and investment protection agreements: clause on automatic tax information exchange

Other tax measures

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