Belgium: Government reaches agreement | KPMG | GLOBAL

Belgium: Government reaches agreement, legislation implementing corporate tax reform

Belgium: Government reaches agreement

The Belgian government has reached an agreement on legislation for implementing corporate tax reform.

1000

Related content

The corporate tax reform would take place in two phases: in 2018 and 2020. Under the tax reform, the rate of corporate income tax for “large companies” would be:

  • 29% as from income 2018 (assessment year 2019)
  • 25% as from income 2020 (assessment year 2021) 

The crisis contribution (currently at 3%) would also be reduced in two steps: 

  • 2% as from 2018 
  • 0% as from 2020

 

Other changes include the introduction of a minimum tax base for companies with a taxable profit that exceeds €1 million by limiting certain deductions (grouped in a “basket”) to 70% of the taxable profit exceeding €1 million. Among the deductions to be included in the “basket” are the following items (and in this order):

  • The notional interest deduction
  • The dividends-received deduction carryforward
  • The innovation income deduction carryforward
  • The deduction of losses carried forward and the (old) notional interest deduction carried forward

The dividends-received deduction for the assessment year, the innovation income deduction for the assessment year, and the investment deduction would not be included in the basket. 

 

Read an October 2017 report prepared by the KPMG member firm in Belgium

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit