Skip to the content

Articles

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 ...

Company law (2020)

Average number of employees Turnover Balance sheet total Microscheme (*) ≤ 10 ≤ €700.000,00 ≤ €350.000,00 Condensed annual accounts (*) ≤ 50 ≤ €9.000.000,00 ≤ €4.500.000,00 Complete annual accounts (*) > 50 > €9.000.000,00 > €4.500.000,00 Consolidated annual accounts (*) > 250 (consolidated) > €34.000.000,00 (consolidated) > € ...

Tax treaties (2020)

Albania Hungary Poland Algeria Iceland Portugal Argentina India Romania Armenia Indonesia Russian Federation Australia Ireland Rwanda Austria Israel San Marino Azerbaijan Italy Senegal Bangladesh Ivory Coast Serbia Bahrain Japan Seychelles Belarus Kazakhstan Singapore  Bosnia-Herz. Korea (South) Slovakia  ...

Value added tax (2020)

Rates: 0, 6, 12 and 21% Non taxable legal entities, wholly exempted businesses, "flat rate" farmers and small businesses: acquisition threshold = €11.200,00 Quarterly filing of return (optional): annual turnover ≤ €2.500.000,00 Deduction of VAT on car costs for business use (maximum  50%) Monthly filing of return: annual turnover > ...