Belgium: New “tax shift” law

Belgium: New “tax shift” law

The Belgian Parliament passed a draft law containing tax measures that implement the “tax shift.” The aim of the tax shift is to impose lower tax burdens on professional income, while providing for increased indirect taxation and taxes on the financial income of individual taxpayers. The legislative provisions generally are effective 1 January 2016.

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The tax shift legislation includes certain business tax incentives—such as increased investment deduction rates; new measures for “high-tech products” including an exemption from withholding tax for certain workers employed in the production of high-tech products; and changes to the wage withholding rules.

The income tax brackets for individual income tax purposes are adjusted, and the tax on capital gains of individuals with respect to “listed shares” is imposed at a rate of 33%. The rate of withholding tax on dividends and interest is increased.

Concerning value added tax (VAT), the new law repeals certain VAT exemptions. The law also includes increased rates of excise tax on certain beverages and tobacco products.

 

Read a December 2015 report prepared by the KPMG member firm in Belgium: Tax shift law

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