On 19 January 2019, the Belgium - Japan Income Tax Treaty will enter into force. The treaty will apply, in respect of withholding taxes, as from 1 January 2020 and, in respect of income taxes, to taxable periods starting as from 1 January 2020. The new treaty will replace the Belgium - Japan Income Tax Treaty of 1968, as amended by the 1988 and 2010 protocols.
Welcome to our Blog. Your one stop shop to keep up to date with all the latest goings on!!
Euro Tax Flash Issue 392 - AG Opinions on cross-border loss relief
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 cars
Changes have been made to the calculation of the benefit in kind of houses and company cars.
New reporting, withholding obligations pending for remuneration granted by foreign parent company
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 update
After a lengthy preparation process, as of 1 January 2019, the Single Permit Directive EC/2011/98 will finally be implemented in Belgium.
Tax legislation to follow in the tracks of new mobility trends
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.
Intrastat: changes on the dispatch declaration form
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.
Belgian VAT treatment of vouchers: too little too late?
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.
Introduction of new rules on immovable rent on 1 January 2019
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!
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.