Euro Tax Flash Issue 392 - AG Opinions on cross-border loss reliefPublished on 14/01/2019 by Jean-François Kinet
On January 10, 2019, Advocate General (AG) Kokott of the Court of Justice of the European Union (CJEU) rendered Opinions in the Memira (C-607/17) and in the Holmen (C-608/17) cases. Both cases concerned the compatibility with EU law of the Swedish rules on the deductibility of losses from foreign subsidiaries, and the extent to which the ‘Marks & Spencer exception’ applies, i.e. losses are considered final. The AG concluded that in the cases under review, losses cannot be considered as final.
Benefits in kind: uniform calculation for houses and reduced benefit for company carsPublished on 07/01/2019 by Jean-François Kinet
Changes have been made to the calculation of the benefit in kind of houses and company cars.
Tax legislation to follow in the tracks of new mobility trendsPublished on 20/12/2018 by Jean-François Kinet
On 3 December 2018, the Belgian government introduced the draft law of the ‘Mobility Budget’ to the parliament. This new draft legislation allows an employee to hand in or downgrade his company car in exchange for a mobility budget and will normally enter into force as from 1 January 2019. At the same time, the government introduced another draft law including a few (minor) changes to the ‘Cash for car’ legislation.
New reporting, withholding obligations pending for remuneration granted by foreign parent companyPublished on 20/12/2018 by Jean-François Kinet
The Belgian government has prepared legislation regarding the introduction of an income tax reporting obligation and a tax withholding obligation for all Belgian employers with respect to remuneration paid or granted by a foreign parent company or affiliate. The reporting obligation would apply for income year 2018. The tax withholding obligation would follow as from income year 2019.
Belgian immigration updatePublished on 20/12/2018 by Jean-François Kinet
After a lengthy preparation process, as of 1 January 2019, the Single Permit Directive EC/2011/98 will finally be implemented in Belgium.
Belgian VAT treatment of vouchers: too little too late?Published on 13/12/2018 by Jean-François Kinet
Belgium finally issued a draft act on 7 December and a circular letter in the form of FAQ’s on 8 December to implement the VAT Directive 2016/1065 relating to vouchers.
Intrastat: changes on the dispatch declaration formPublished on 13/12/2018 by Jean-François Kinet
As the end of 2018 is near, we would like to draw your attention to an upcoming change for Intrastat that will enter into force as from January 2019.
Introduction of new rules on immovable rent on 1 January 2019Published on 13/12/2018 by Jean-François Kinet
On the 25th of October the long expected new law regarding the optional VAT regime for immovable rent was published. Besides the introduction of the new optional regime, the law introduces a mandatory VAT taxation for the short term rent of immovable property.
Tax consolidation: Belgium enters the playing field!Published on 07/12/2018 by Jean-François Kinet
Groups with loss making entities may (significantly) reduce their overall Belgian tax burden and optimize their tax prepayments. As from next year, it will become possible to compensate the current year losses of one company with the profits of another affiliated company.
Indeed, for financial years starting as from 1 January 2019, Belgium introduces a concept of tax consolidation (in the form of tax-deductible group contributions) for corporate taxpayers. As a result, Belgian group companies may be able to pay taxes only on their combined results.
Earning stripping rules applicable 1 year earlierPublished on 06/12/2018 by Jean-François Kinet
The government has introduced a draft law before Parliament which brings the implementation of the earning stripping rules forward from 2020 to 2019.
According to the earning stripping rules, the deduction of net interest (i.e. difference between interest paid and interest received, “exceeding borrowing costs”) is limited to the higher of 3 million EUR or 30% of EBITDA.