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Tax alerts

Japanese Services Group

The tax alerts by the Japanese Services Group allow Japanese multinational groups to stay informed of the latest Belgian and European tax developments.

Key immigration and social security topics for 2018

1 February 2018

A new year always brings along a number of legislative changes or developments. What follows is a high-level overview of several major changes and points of attention for 2018 in Belgium.

The ICT Directive’s EU mobility impact for third country national Intra-Corporate transferees

18 December 2017

One of the most closely followed topics in EU corporate immigration is intra-corporate transfers to and mobility within the European Union. Deloitte is currently undertaking a study on this subject. What follows is an overview of the implementation status of the EU Intra-Corporate Transferees Directive (ICT directive), a year since the official transposition deadline. 

Salary Indexation for Immigration purposes

6 November 2017

The Flemish immigration authorities recently communicated the new salary thresholds for foreign employees holding work permits, as either highly skilled employees or as executive employees, and for blue card holders. These salary thresholds are indexed annually based on the evolution of the price consumer index and apply as of 1 January 2018.

Belgium referred to ECJ for failing to implement Single Permit Directive

7 August 2017

On 13 July 2017, the European Commission decided to refer Belgium to the European Court of Justice in Luxembourg for failing to fully implement the Single Permit Directive. The Directive needed to be transposed into Belgian law by 25 December 2013. The Commission is also proposing a daily penalty of EUR 70,828.80.

Enhanced and stricter border checks for Europe

26 July 2017

Recent crises in Europe have underlined the need for stricter border checks and better border management. Consequently, the European Commission introduced a smart borders package, which includes several proposals. The most important ones are outlined.

Europe-Schengen touring visa: A new one year-long visa in the making

5 July 2017

The European Commission is proposing a visa to allow third-country nationals to travel and stay in the Schengen area for up to 12 months without requiring full residency.

Japanese Business Tax Europe – Newsletter Vol.47

7 June 2017

The Japanese Business Tax Europe (JBTE) Newsletter is for Japanese Multinational Corporations operating in Europe.

Macron presidency: immigration, social security and Brexit

19 May 2017

After Brexit, Sunday 7 May 2017 proved to be another pivotal day for Europe. French citizens were to choose between the extreme right-wing candidate Marine Le Pen and the centre-left candidate Emmanuel Macron.

Le Pen had proposed a referendum to have France leave the European Union (“Frexit”), a complete immigration freeze and the re-establishment of France’s internal borders. Frexit and further disruptions on a European level were therefore a possibility, however, it was Macron who was elected.

Intra Corporate Transferees Directive

16 March 2017

In 2014, the European Council adopted the proposal for a Directive on the conditions of entry and residence of third-country nationals, within the framework of an intra-corporate transfer.

25 participating EU Member States had 30 months to transpose this Directive (by 29 November 2016). As with other EU policies on legal migration of third-country nationals, the UK, Denmark and Ireland opted out of this Directive.

Japanese Business Tax Europe – Newsletter Vol.46

6 March 2017

The Japanese Business Tax Europe (JBTE) Newsletter is for Japanese Multinational Corporations operating in Europe.

Key immigration topics for 2017

17 February 2017

With the new year underway, immigration and social security will see several developments in Belgium (and the EU). What follows is a high level overview of some of the major changes and attention points for 2017.

Japanese Anti-Tax Haven Rules - Japan Tax Reform Proposals 2017

16 January 2017

The Japanese Government ruling parties agreed on an outline of the 2017 Tax Reform proposals on 8 December 2016. This newsletter sets out the key measures proposed and the practical aspects relating to the Japanese Controlled Foreign Company rules ("CFC" or the so called "Japanese Anti-Tax Haven rules"), which may give rise to potential tax implications for Japanese owned groups.

Belgium implements Transfer Pricing documentation requirements

8 December 2016

On 2 December 2016, the Royal Decree detailing the implementation of the transfer pricing (‘TP’) legislation in Belgium has been published.

2017 Salary Indexation for work permits

2 December 2016

Salary levels taken into account by the different regions when issuing work permits for highly qualified foreign employees or executives with a management position in Belgium are linked to the index of contractual salaries. These salary levels are reviewed each year.

Belgium and Japan sign new convention to eliminate double taxation

12 October 2016

On 12 October 2016 in Tokyo, during the Belgian State visit to Japan, the respective Governments of Japan and Belgium signed the new Convention between these two countries for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance.

Corporate income tax reform update

3 October 2016

The corporate tax alert of 20 September 2016 discussed the highlights of the Finance Minister’s draft plan for a reform of Belgium’s corporate income tax (CIT) regime.

Meanwhile, the initial plan has been updated and this alert briefly discusses some relevant changes. Since the revised CIT reform plan still needs to be discussed in detail within the government, it goes without saying that nothing is to be considered as final at this stage.

Innovation Income Deduction will replace the PID regime

26 September 2016

In order to activate the conclusions from the OECD’s BEPS Action 5 report and similar discussions at EU level, Belgium has abolished the patent income deduction (PID) regime from 1 July 2016, subject to a conditional grandfathering rule which allows the old PID regime to be claimed until 30 June 2021 (see previous alert of 12 July 2016).

Corporate income tax reform: quo vadis?

20 September 2016

The April 2016 budget control agreement requested the Finance Minister to propose, by the end of September 2016, alternatives for a reform of Belgium’s corporate income tax (CIT) regime.

Political agreement reached on EU Anti-Tax Avoidance Directive

22 June 2016

On 28 January 2016, the European Commission released an Anti-Tax Avoidance Package that, amongst others, included a proposal for an Anti-Tax Avoidance Directive (‘ATAD’) (see earlier Deloitte alert).

On 25 May 2016, the ECOFIN was unable to reach a political agreement on a compromise text for the proposed ATAD, and therefore decided to continue working on the proposal with the aim of reaching an agreement on the ATAD at the ECOFIN meeting of 17 June 2016 (see earlier Deloitte alert).

With no objections raised by the Member States during the silence procedure that ended 20 June 2016 at midnight, political agreement on a final compromise text of the ATAD has now been reached. The ATAD will be formally adopted at a future ECOFIN meeting.

BEPS: Belgian program law on implementation of Action 13

30 May 2016

Within the context of the OECD’s initiative to tackle Base Erosion and Profit Shifting (‘BEPS’), Action 13 is concerned with increasing transparency through the provision of adequate information for the performance of risk assessments and the audit of transfer pricing practices. In essence, the OECD has introduced a three-tiered approach to transfer pricing documentation which requires multinational enterprises to compile (1) a Country by Country report (‘CbC’), (2) a Master file and (3) a Local file.

Currently, countries are adopting the OECD guidance into their domestic legislations. In Belgium’s case, a draft program law should soon be deposited with parliament, specifying how BEPS Action 13 would need to be implemented in Belgian law. What follows are the main elements of the proposed draft legislation.

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