The minimum lump sum will climb â in two steps â from â¬ 19,000 (now) to â¬ 40,000. If an EIG with non-Belgian members or an EEIG is established in Belgium, it should not create a permanent establishment in Belgium for the non-Belgian participants. Last but not least, a well-functioning Ruling Commission allows for reliable advance tax rulings on all kinds of anticipated investments and other transactions (including unilateral and multilateral transfer pricing issues), creating advance legal certainty in areas of law where there would otherwise be a relatively large degree of uncertainty and âlitigation riskâ. The corporate tax rate of 33,99% will be lowered to 29% in 2018and 25% as from 2020. If this is indeed the long-term goal, it would seem unnecessary to first introduce a large number of technically complex rules (such as CFC, interest limitation, etc), which will eventually become redundant in a C(C)CTB world. The new Belgian corporate tax landscape provides for a positive impulse to Belgiumâs international competitive position while demonstrating the importance of tax compliance. Belgium has adopted a somewhat far-reaching version of the Country-by-Country Reporting standard (BEPS Action 13), inter alia, by imposing CbC reporting for financial years starting on or after 1 January 2016. l Statutory corporate income tax rates: â covers 109 jurisdictions from 2000-2020 l Corporate effective tax rates: â covers 74 jurisdictions for 2019 l Tax incentives for research and development (R&D): â data are from the OECD R&D Tax Incentive Database produced by the OECDâs Science, Technology and Innovation Directorate has four specialised tax attorneys in its tax team, all of whom handle Belgian corporate tax matters and tax litigation matters before Belgian courts, as well as the European courts. The unrealistic interest rate of 7% is finally also abandoned. Belgium has a General Anti-Abuse Rule (GAAR) in place. There is currently little or no experience in Belgium of compensating adjustments in connection with transfer pricing claims; how this will work out in practice remains to be seen. Only 20% of the normal wage withholding tax has to be effectively transferred to the Revenue Service, while the employees are entitled to credit 100% against their personal income tax liability. De Langhe Advocaten BVKoningsstraat 71B-1000 Brussel. These rates are to be increased with the crisis tax, which will also be lowered for 2018 and abolished in 2020.See the below summary. KPMGâs corporate tax rates table provides a view of corporate tax rates around the world. The first exception is capital gains on qualifying shareholdings (as part of the participation exemption regime), which are 100% tax-exempt if the shareholding represents at least 10% of the share capital of the underlying company or has an (historic) acquisition value of at least EUR2.5 million, and has been maintained for an uninterrupted period of at least one year immediately preceding the disposal. If there is a suspicion of fraud or aggressive tax abuse, the Special Investigation Service may start its own investigation, independent from the local tax inspectorate. Secret commissions tax A special assessment of 100% is applicable to so-called âsecret commissionsâ, which are any expense of which the beneficiary is not identified properly by means of proper forms timely filed with the Belgian tax authorities. If you disable this cookie, we will not be able to save your preferences. VAT Rates in European Union Member States, as of January 2020; Note: When one of the major EU VAT directives was adopted in 1991, some EU countries were applying reduced, super-reduced or zero rates to goods and services that were not specified by the new regulations as falling within the zero-rate or reduced rate categories. In addition, a complex subject-to-tax test applies to prevent dividends that have not been sufficiently taxed at the level of the subsidiary from being exempt in Belgium. Corporate Tax Rate in Belgium averaged 38.08 percent from 1981 until 2020, reaching an all time high of 48 percent in 1982 and a record low of 29 percent in 2018. Also, the headline CIT rate has been reduced to 29.58% (2018-2019) and further to 25% (2020 and beyond), in order to be competitive with jurisdictions such as the Netherlands and Luxembourg, which are often competing for the same inward investments as Belgium. The amount of taxes a person in Belgium has to pay â¦ Each company will be required to pay at least â¬ 45,000 per year to (at least one) company manager. Therefore, it will no longer be possible to overpay taxes with the intention of receiving a higher moratorium interest if the tax is afterwards refunded to the taxpayer. Companies will also be encouraged to make more tax prepayments. With the exception of capital losses on shares, capital losses are deductible from current income, as capital gains (again, with the exception of capital gains on qualifying shares) are taxable as ordinary income (albeit that the taxation of capital gains on fixed assets can be deferred, under strict conditions). In most instances, corporate tax and VAT audits will be conducted simultaneously. Belgium's tax credit is a basic (fixed) allowance available to all (single) taxpayers without dependents. Lower rates and even exemptions are available, for example for dividends paid to qualifying parent companies established in countries with which Belgium has a bilateral tax treaty in force or interest paid to so-called financial holding companies. The basic rate of company tax in Belgium as of 2019 is 29%, plus a 2% crisis tax. For civil law purposes, Belgian law will apply if the entity is governed by the relevant Belgian laws, provided the Belgian conflict-of-law rules do not make any other jurisdiction competent as governing law. Corporate Tax Rate in Greece averaged 35.30 percent from 1981 until 2020, reaching an all time high of 49 percent in 1985 and a record low of 20 percent in 2011. What are the incentives in Belgium for hiring a first employee. Depreciations will then only be allowed on this reduced tax base, resulting in the taxation of the temporarily exempt capital gain over time, as the newly invested assets are depreciated. 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