The Belgian Government agreed on some tax reforms during the finalisation of the 2017 budget. A larger (mainly corporate) tax reform has also been announced, although the government has not yet come to a final agreement on it (we will keep you informed about this reform).
Below, we summarize some announced tax changes (point A), and give you a preliminary overview of some of the most significant points that are being discussed within the announced reform (point B. There is no political agreement on these points yet. They are still being discussed and cannot be considered to be announced changes).
A. Changes that were agreed upon within the Belgian Government on October 16, 2016
| Topic |
Current regime |
Announced change |
| Capital gains on shares by individuals |
- Speculation tax: gains on shares realized
within 6 months following the acquisition of listed shares: 33% (+ local
surcharge)
- Tax on stock exchange transactions: 0.09%/0.27%/1.32%, capped at € 650/800/2,000 on some stock exchange
transactions
- Gains realized outside the normal management
of the individual’s private estate: 33% (+ local surcharge); some internal
gains which are deemed as falling outside the normal management of the individual’s
private estate
|
- Abolishment of the Speculation tax
- Tax on stock exchange transactions: Cap will
be doubled
- Internal gains: subjected to tax (no further
details are available at this time; please note that the limited amount of
income that is to be allocated to this measure in the 2017 budget is : EUR 31million)
|
Ordinary income
tax rate on interest and dividends for individuals |
27% |
30%
(applicable as from
2017) |
B. Highlights of possible changes with the announced tax reform (no political agreement on these points, they are still being discussed).
| Topic |
Current regime |
Possible change |
| Capital gains on shares by individuals |
- Normal management of the individual’s private
estate: 0%
- Gains realized outside the normal management
of the individual’s private estate: 33% (+ local surcharge)
- Gains on some financial capitalisation
instruments: qualified (and taxed) as interest
|
- {changes still
discussed}
|
Corporate
Income Tax |
- Ordinary
rate: 33.99%
- Reduced
rate for small enterprises (certain conditions apply): progressive rates starting
at 24.98%
- Notional
Interest Deduction: assessed ordinary rate for civil year 2017 (tax year
2018): 0.237%
- Parent-Subsidiary
Dividends: 95% exemption
- Capital
gain on shares: 100% exemptions (conditions)
|
- Ordinary
rate: 23% (as from 2019)
- Reduced
rate for small enterprises (certain conditions apply): 18% (as from 2019)
- Notional
Interest Deduction: suspension
- Parent-Subsidiary
Dividends: 100% exemption
- Capital
gain on shares: 100% exemptions (conditions): additional quantitative
condition, alignment on dividends: participation of at least 10% or participation
with an acquisition value of at least EUR 2,500,000
|
