The Belgian government has reached an agreement on legislation for implementing corporate tax reform.
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:
The crisis contribution (currently at 3%) would also be reduced in two steps:
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 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
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