These two measures were not included in a prior draft law earlier this year because the Council of State found no “urgent” need for introduction of these provisions.
The provisions, as drafted, are set to be effective as from assessment year 2017 and applicable to transactions made as from the date of publication of the law in the Belgian official gazette.
The second part of the draft law offers, in certain instances, an election to pay the exit tax choice either as a direct payment or a “spread payment” (with the spread being over a period of five years). The exit tax applies with respect to capital gains on Belgian assets following:
The taxpayer would be allowed to opt for a spread payment of the exit tax provided that the assets are maintained within a company or a foreign establishment located in another EU or EEA Member State. For these purposes, the European Economic Area (EEA) would be EU plus Norway and Iceland, but not Liechtenstein because it is not yet a party to an agreement on the mutual assistance in the recovery of taxes.
In instances when a taxpayer makes an exit tax spread payment election, the tax authorities could require a guarantee if there is a risk of non-recovery, and each year, the taxpayer would be required to complete a form with information about the assets concerned. In certain circumstances (e.g., on a sale of the assets, assets leaving the EEA, among other situations), any remaining amount of the unpaid tax liability would be immediately due. Also, there would be no tax increase in instances of prepayment of the exit tax.
Read an October 2016 report prepared by the KPMG member firm in Belgium
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