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Tax legislation follows in the tracks of new mobility trends

Today, the law introducing the ‘Mobility Budget’ has been published in the Belgian Official Gazette. This new legislation allows an employee to hand in or downgrade his company car in exchange for a mobility budget and enters into force on 1 March 2019.   At the same time, another law including a few (minor) changes to the ‘Cash for car’ legislation has been published.

Currently it is already possible to include flexibility in the company car policies: employees can already hand in or downgrade a company car in exchange for other benefits or cash in the framework of a flexible reward plan or a flexible car policy. The pay-out of the balance in cash is however fully subject to income tax and social security contributions and therefore not beneficial.

Attention points for prepayments in 2019

Prepayments are essential for a company in a tax paying position that wishes to avoid an additional surcharge. Prepayments for the first quarter of 2019 (assessment year 2020 (AY 2020)) should be done on a new account number and at last April 10 2019 (for companies with a financial year ending on December 31st 2019).   The tax administration works on the MyMinFin Pro platform to allow tax payers to consult and administer their prepayments online in future.

The Council adds ten jurisdictions to its list of non-cooperative jurisdictions

On March 12, 2019 the Council adopted a revised EU “black list” of non-cooperative jurisdictions for tax purposes. In addition to the five jurisdictions that were already listed, the revised list now includes ten additional jurisdictions that did not deliver on their commitments on time: Aruba, Barbados, Belize, Bermuda, Dominica, Fiji, Marshall Islands, Oman, United Arab Emirates and Vanuatu. 

ECOFIN fails to reach agreement on digital advertising tax compromise text

The Economic and Financial Affairs Council of the EU (ECOFIN) did not reach agreement on the digital advertising tax (DAT) during the March 12, 2019 meeting. Member States’ representatives held an exchange of views on a watered-down version of the Commission’s digital services tax (DST) proposal, but failed to reach consensus on a compromise text tabled by the Romanian Presidency of the EU.