Tax reforms in Belgium: what’s changing for you!

The Belgian federal government has announced tax measures affecting companies and investors. 

The Belgian federal government has announced tax measures affecting companies and investors. Here are the key points:

• Liquidation reserve: withholding rate increased to 6.5% (from 5%), period reduced from 5 years to 3 years
• Company directors: minimum salary increased to €50,000 for the reduced rate of ISOC; benefits in kind capped at 20%
• Simplification of ISOC: removal of several exceptions and tax exemptions (social liabilities, private PC plans, capital gains on vehicles)
• PPI prepayments: end of tax surcharge for underpayments, financial incentive to double equity capital
• Solidarity contribution: 10% tax (Contribution Solidaire) on capital gains (including crypto), exemption for small investors and €1,000,000 exemption for major holdings
• Simplification of the RDT (Revenus Définitivement Taxés) regime: deduction becomes exemption, threshold raised for large companies
• RDT-Sicavs: 5% tax on capital gains and specific condition on directors’ remuneration
• Other changes: shorter tax audit deadlines, measures to combat registration duty avoidance, measures on electric company cars and VAT rate reductions (demolition-reconstruction, heat pumps) …

These reforms represent as many challenges as they do opportunities and require an adjustment in investment strategy.

Do you need support? The In Extenso Belux team is there for you.