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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.
Draft bill including new tax regime for expats submitted in Parliament (in Japanese translation)
6 December 2021
One of the most eye-catching measures in this bill is the new tax regime for “inbound taxpayers and inbound researchers”, replacing the administrative circular on the “special tax status for foreign executives in Belgium”.
EU-Japan Economic Partnership Agreement voted in EU Parliament
19 December 2018
On 12 December 2018, the EU Parliament voted the EU – Japan Economic Partnership Agreement (EPA).
This vote follows a similar decision taken by Japan's National Diet, thus concluding the agreement’s parliamentary ratification by both partners. It paves the way for the agreement to enter into force on 1 February 2019.
Updates on Salary Indexation for Immigration purposes and Single Permit
23 October 2018
The Flemish, Brussels and Walloon immigration authorities recently communicated the new salary thresholds for foreign employees holding work permits.
According to the regional governments, the implementation of Belgium’s new immigration process (the so-called “Single Permit”) is still foreseen for January 2019.
Flemish Region first to propose regional Work Permit regulation in Belgium
9 August 2018
Although the 6th State Reform of 2016 rendered the Belgian regions competent in the field of economic migration, the three regions (i.e. Brussels, Flanders, Wallonia) have until now agreed to apply the same requirements and conditons for the employment of non-EEA nationals.
On 13 July 2018, the Flemish region brought an end to this agreement and announced draft legislation with a specific set of conditions and processes to employ non-EEA nationals in Flanders. The proposals have been published in the “immigration vision document”.
Update on the Intra-Corporate Transfers Directive
10 June 2018
One of the currently key topics in EU corporate immigration is the EU Directive’s impact on Intra-Corporate Transfers (ICT Directive) regarding the entry and mobility of third country nationals in the EU. Deloitte has conducted a soon to be published study around this topic. What follows is an overview of some of the main features in said ICT study.
Immigration formalities when employing foreign trainees and students
24 May 2018
With summer approaching, employers start to think about hiring foreign nationals for a traineeship or student job. This alert provides a summary of the immigration rules to be observed when hiring a foreign trainee or student.
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.
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 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.
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).
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.