This morning, the Belgian government presented new tax measures in the light of the 2013 Belgian budget discussions. We summarise hereafter the main new tax measures. More details are expected in the next few days after discussion in the Chamber. We will keep you posted on the most relevant elements for the M&A environment once further details are available.
- Withholding tax: A uniform withholding tax rate of 25% would be introduced for both interest and dividends. There are some exceptions (e.g. liquidation boni still 10%, saving accounts: no change). The 21% + 4% would no longer exist.
- Notional interest deduction: Some modifications to the NID system would be introduced (probably a decrease of the NID rate).
- Capital gains on shares: tax of 0,4%: Capital gains on shares would be taxed at 0,4% (not for SME’s, only for large companies and holding companies).
- Taxation of residential SICAFI: Dividends of SICAFI’s would be subject to 15% withholding tax (instead of 0% as is currently the case).
- Fiscal amnesty: The existing fiscal amnesty procedure would be cancelled as from 1 January 2014. A new rule would be introduced for the period until 31 December 2013, but with higher rates (penalties).
- Excise duties on tobacco and alcohol: Excise duties on tobacco and alcohol would be increased.
- Tax on life insurance premiums: Tax on certain life insurance premiums would increase from 1,1% to 2%.
- No increase of VAT: There will be no increase of VAT rates.
If you have any questions on the above or would like to discuss how this may affect your Belgian tax situation, please consult www.taxreform.be and/or contact Jan Muyldermans (Lead Transactions Partner).