In Belgium, it has been determined that the average return and the notional interest deduction rate will be 0.237% for assessment year 2018. For small and medium sized enterprises (SMEs), the rate will be 0.737%. These rates are still subject to official confirmation.
As a reminder, the rate for assessment year 2017 is 1.131% (1.631% for SMEs). For companies (not SMEs) closing their financial year on 31 December, this implies that the notional interest deduction rate for financial year 2016 is 1.131% and for financial year 2017 is 0.237%. Also, the Belgian government is preparing a corporate tax reform that could affect the rules applicable to the notional interest deduction.
Read a September 2016 report prepared by the KPMG member firm in Belgium: Notional interest deduction rate for assessment year 2018
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