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.

 

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