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European Commission investigation into individual Belgian “excess profit” tax rulings
Published on 17/09/2019 by Jean-François Kinet
Language: English

On September 16, 2019, the European Commission launched an investigation into whether the “excess profit” tax rulings granted to 39 companies by Belgium constitute State aid within the meaning of EU law (See the European Commission’s press release).This investigation is a response to the General Court's decision in case T-131/16 annulling the Commission's initial decision that these rulings formed part of a Belgian aid scheme that was incompatible with EU law (see Euro Tax Flash 395). 

A no-deal Brexit and warehousing
Published on 16/09/2019 by Jean-François Kinet
Language: English

How could a no-deal Brexit impact my supply chain? - Does this question ring a bell? Maybe you’ve come across it during a Management meeting or one of your clients asked you this recently? I think it’s fairly safe to assume that, regardless which direction the negotiations take, there will be a significant impact on warehousing both in the UK and in the EU as businesses start stockpiling goods.

Pack your bags; we’re going on a trip!
Published on 16/09/2019 by Jean-François Kinet
Language: English

Whereas a couple months ago the fate of the future relationship between the UK and the EU was uncertain, given recent developments, the chances of a no-deal Brexit are getting higher and higher as the days go by.

When it comes to immigration, or simply the migration of people, the prospect of EU citizens being treated as third- country nationals, under a no-deal scenario, makes me a little nervous.

So, given my state of unease, business leaders must also be feeling uncomfortable. How do I know? Well, I’m regularly contacted by companies regarding how to handle their impacted employees. Here are just a couple of the typical questions I receive: How easily will my employees be able to cross borders? What about social security costs and legal benefits?

No incremental notional interest deduction for assessment year 2021 ?
Published on 13/09/2019 by Jean-François Kinet
Language: English

The notional interest deduction (NID) has become less attractive after the corporate tax reform as the calculation is now based on the positive increase of the equity of the company (incremental notional interest deduction).

Circular letter discusses grandfathering rule in earning stripping regime
Published on 12/09/2019 by Jean-François Kinet
Language: English

The tax authorities have released a circular letter on the grandfathering rule in the new earnings stripping regime. The other aspects of the regime will be discussed in another forthcoming circular letter

AG Opinion regarding Netherlands' withholding tax on dividends paid to foreign investment funds
Published on 09/09/2019 by Jean-François Kinet
Language: English

On September 5, 2019, Advocate General (AG) Pitruzzella of the Court of Justice of the European Union (CJEU) rendered his opinion in the Köln-Aktienfonds Deka case (C-156/17) concerning the compatibility with EU law of the Dutch withholding tax on dividends distributed to non-resident investment funds. The AG concluded that the shareholders and distribution requirements imposed by the Dutch legislation to benefit from a tax refund may be contrary to the free movement of capital.

L'administration clarifie les règles d'exigibilité
Published on 30/08/2019 by Jean-François Kinet
Language: Français

Dans sa circulaire administrative 2019/C/65 du 9 juillet 2019, l'Administration de la TVA commente les différents aspects des règles d'exigibilité de la TVA qui sont entrées en vigueur le 1er janvier 2016. Elle évoque également les règles d'exigibilité qui n'ont pas été modifiées depuis lors. Elle clarifie les règles en s'appuyant sur des exemples, selon la nature de l'opération et la qualité du client.

Administratie verduidelijkt de opeisbaarheidsregels
Published on 27/08/2019 by Jean-François Kinet
Language: Nederlands

Met haar administratieve circulaire 2019/C/65 van 9 juli 2019 licht de btw-administratie de verschillende aspecten toe over de opeisbaarheidsregels van btw die in werking zijn getreden op 1 januari 2016. Ook de opeisbaarheidsregels die sindsdien niet zijn gewijzigd, komen aan bod. Voorbeelden verduidelijken de regels in functie van de aard van de handeling en de hoedanigheid van de afnemer.

Belgium has ratified the Multilateral Instrument
Published on 18/07/2019 by Jean-François Kinet
Language: English

The federal law containing assent with the multilateral instrument (MLI) which implements the tax treaty related measures of the OECD Action Plan on Base Erosion and Profit Shifting (BEPS) in existing bilateral tax treaties has been published in the Belgian Official Gazette of 17 July 2019. The publication marks the final step in the process of ratification of the MLI.

Belgium – Court of Cassation Rules on Notion of Salary Subject to Social Security
Published on 27/06/2019 by Jean-François Kinet
Language: English

Last year, the National Social Security Office (NSSO) modified its stance with regard to the qualification of salary subject to Belgian social security1 on the basis of a judgement of the Belgian Labour Court2.  

The judgement of the Belgian Court of Cassation of 20 May 20193 has now confirmed the earlier judgement of the Labour Court and therefore the opinion of the NSSO.  As a consequence, social security contributions remain due on all benefits that relate to the work performed by the employee in the execution of his/her employment contract with the employer or that relate to the function of the employee carried out for the employer.  This principle applies even without any intervention of the (Belgian) employer in the payment/grant of the benefit.