On April 3, 2020, the European Commission extended the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak with an additional five measures, including targeted support in the form of deferral of tax payments and suspension of social security contributions.
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Government increases bonification of corporate tax prepayments made during Q3 and Q4
In response to the Covid-19 outbreak, the Belgian and regional governments have taken several measures in the past weeks to mitigate the financial and economic effects of the temporary lock down. The latest measure of the federal government relates to corporate tax prepayments.
European Commission adopts Temporary Framework for State aid measures
On March 19, 2020, following consultation with EU Member States, the European Commission adopted a Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak. The Framework sets out temporary State aid measures that the European Commission considers compatible with the EU internal market and that can be approved rapidly upon notification by each Member State.
Circular letter on transfer pricing released
On February 25, 2020, the Belgian tax administration released a final version of the Circular letter on Transfer Pricing, which sets out the positions of the Belgian tax administration on multiple items stemming from ongoing BEPS developments.
Corporate tax rate (2020)
Rates (assessment year 2021) A. Standard rate B. Reduced rates if applicable C. Other rates 25% 20% for SMEs (first €100.000) Capital gains on shares (25,50%), secret commissions tax (100%) Risk Capital Deduction Ass. year 2019: 0,746% (small companies: 1,246%) Ass. year 2020: 0,726% (small companies: 1,226%) ASS. year 2021: 0% (small companies: ...
Personal income tax (2020)
Rates (income year 2020) (1) Income (€) Rate (2) 0 - 13.440,00 25% 13.440,00 - 23.720,00 40% 23.720,00 - 41.060,00 45% more than 41.060,00 50% (1) Computation of the tax (income year 2020) Standard business deduction A. Remuneration of employees (€) 30% max. €4.880,00 B. Directors remuneration (€) 3% ...
Withholding tax on movable income (2020)
Dividends 30% (*) Redemption proceeds 30% Interest 30% Liquidation proceeds 30% Other movable income 30% (*) Dividends paid to companies established in Belgium, in the European Union or in a country with which Belgium has a tax treaty benefit from an exemption/reduction of withholding tax, provided certain conditions are met. ...
Monthly contribution CO2 on company cars (2020)
Vehicles with petrol engine: [(Y x 9) - 768]: 12 x 1,3078 Vehicles with diesel engine: [(Y x 9) - 768]: 12 x 1,3078 Minimum monthly contribution: €27,24 Y = CO2 emission in gram per km ...
Benefits in kind (2020)
Interest rate on current account Year of disposal Reference rate 2017 8,78% 2018 8,94% 2019 8,78% Personal use of a company car Catalogue value(*) x [5,5 + 0,1 x (CO2 emission - 91 (diesel) or 111 (petrol))](**)/100 x 6/7 = benefit in kind (***)17% (40% if intervention of the employer in the fuel expenses) of the benefit in kind before deductio ...
Investment deduction (2020)
Rates (assessment year 2021) A. Standard rate Individuals and SMEs (art. 1:24 new Company Code) 8% B. Increased rates Energy-saving investments 13,5% R&D new products/technologies (*) 13,5% Patents (*) 13,5% Digital assets 13,5% Investments in security 20,5% Investments in ships 30,0% C. Sp ...