Belgium corporate tax reform legislation | KPMG | GLOBAL

Belgium: Parliament to approve legislation implementing corporate tax reform

Corporate tax reform in Belgium

The Belgian parliament today is scheduled to approve legislation implementing corporate tax reform.


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The new legislation is generally expected to be published in the Belgian official gazette before the end of 2017.

The corporate tax reform will be phased in over three years, starting in 2018--or more precisely, in assessment year 2019, linked to a tax period starting on or after 1 January 2018. Certain measures will be effective next year.

Among the provisions are the following:

  • Corporate tax rate reduction: For large companies, the corporate tax rate is reduced from 33.99% to 29.58% (crisis contribution being reduced from 3% to 2% is included). For SMEs, the rate is reduced to 20.4% (crisis contribution of 2% included) on the first bracket of €100,000 of net taxable income. This SME rate will only apply if certain conditions are met (including a minimum salary paid to a company director (individual)).
  • Capital gains on shares: For large companies, the separate taxation at 0,.412% of capital gains on shares will be repealed.
  • Dividends-received deduction: The dividends-received deduction will be increased from 95% to 100%.
  • Fairness tax: Legislation, to be introduced in the beginning of next year, would repeal the fairness tax.
  • R&D - partial exemption of payment of wage withholding tax: The exemption of payment of wage withholding tax for scientific research staff (master or PhD) will be extended to staff with a (scientific) bachelor’s degree as from 1 January 2018. The rate of exemption is 40%, with a maximum exempt amount equal to 25% of the exempt amount for masters (50% for SMEs).
  • Investment deduction: The investment deduction for SMEs will be increased from 8% to 20% for investments made in 2018 and 2019 and linked to assessment years 2019 and 2020.


Read a December 2017 report prepared by the KPMG member firm in Belgium

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