Switzerland Withholds EUR615m In 2012 In EU Interest Tax
Belgian Revenue Rise Overshadowed By Soaring Expenditure In 2012
Belgium Unveils Details Of Tax Regularization Bill
ECJ Slams Belgium's 'Discriminatory' Savings Tax Perk
Belgian Royals Face First Tax Bills
Belgium Tax News »
Belgium - Antigua and Barbuda
Belgium's Council of Ministers on May 31, 2013, approved a law to ratify the TIEA signed with Antigua and Barbuda on December 7, 2009.
Belgium - Various
Belgium's Council of Ministers on May 31, 2013, approved two laws to ratifying the DTA and an accompanying Protocol signed with the Seychelles, and a Protocol to the nation's DTA with the Czech Republic.
Belgium - Liechtenstein
According to preliminary media reports, the Belgian Government on April 19, 2013, endorsed the pending TIEA the nation signed with Liechtenstein and forwarded it to parliament for ratification.
Belgium Tax Treaty Updates from TreatyPro »
Special Expatriate Fiscal Regime
Belgium has a corporate income
tax rate of 33.99% (including a 3% so-called 'crisis surcharge')
and has never been considered a financial center. However in
order to attract the headquarters of foreign multinational companies
Belgium accorded favorable tax treatment to entities known as
"co-ordination centers" (these have now been phased out). Belgium
offers a low-tax regime to expatriate employees with specialist
skills, and has a relatively benign holding company taxation
interest deduction', introduced in January 2006, effective in
tax year 2007, allows all companies subject to Belgian corporate
tax (including Belgian branches of foreign companies) to deduct
from their taxable income an amount equal to the interest they
would have paid on their capital in the case of long-term debt
of the tax deduction begins with the ‘equity capital’
as stated in the company’s opening balance sheet of the
taxable period. Based on Belgian accounting law, ‘equity
capital’ includes capital, share premiums, revaluation
gains, reserves, carry-forward of profits or losses and capital
investment subsidies. The notional interest rate was set in
the 2012 budget at 3% for large companies and 3.5% for SMEs.
The new rates will apply from January 2013. Prior to this the
rates were 6.5% and 7% respectively.
interest deduction does not discriminate between companies and
complies fully with existing Belgian and EU law. Discussions
with EU authorities have taken place and the measure is compatible
with EU State Aid rules and the Code of Conduct.
to cut its budget deficit to below 3%, the newly formed Belgian
government announced a number of measures in the 2012 budget
to help achieve this aim. Provisions to reduce spending and
increase certain taxes are contained in the budget:
gains exemption is now subject to a minimum one year holding
- The reduced
withholding tax rate on dividends is increased from 15% to
interest deduction reduced from 6.5% to 3% for large companies
and from 7% to 3.5% for SMEs;
- The 7:1
debt ratio is replaced by a 5:1 debt equity ratio from 1 July
also introduced a 4% tax in addition to the usual withholding
tax on income derived from interest and dividends that exceeds
the threshold of EUR20,020.