The federal government has reached an agreement on the budget for 2023 and 2024.
To tackle the energy crisis, the following measures have been decided:
- Introduction of an excess profit tax for energy producers with an income above 180 EUR per MWh between 01/01/22 and 30/11/22 and above 130 EUR per MWh between 01/12/22 and 30/06/23 (possibly extended beyond June 2023); and
- Solidarity contribution from the oil sector.
This revenue will be spent on:
- Reduction of the employer social security contributions on the extra wage after indexation: waiver for Q1 and Q2 of 2023 and delayed payment for Q3 and Q4 of 2023;
- Permanent reduced VAT rate of 6% on gas and electricity, however compensated by an adjustment of excise duties when prices normalize; and
- Extension of the rebate on households’ energy bill and of the reduction of excise duties on gas and electricity for businesses until March 2023.
To reduce the budget deficit, the following tax measures have been decided:
- Minimum tax of 15% for companies with profits above 1 MEUR by reducing the use of tax deductions in the basket from 70% to 40% (only in 2023);
- Abolition of the notional interest deduction (at least for large companies);
- Adjustment of tax treatment of foreign tax credit for royalties;
- Reform of the copyright regime as from 2024;
- Abolition of the tax reduction for second dwellings as from 2024;
- Bank tax no longer deductible;
- Indexation of parafiscal company contribution;
- Reinforcement of a packaging levy;
- Increase excise duties on tobacco, also excise duties on e-cigarettes as from 2024;
- Technical correction of implementation VAT directive on e-commerce; and
- Intention to work out “health shift” by increasing VAT on unhealthy products and decreasing VAT on healthy products (such as vegetables and fruit)
Lastly, the Minister of Finance has been asked to submit a proposal for a tax reform by 1 December 2022.
More details will be communicated as soon as they become available.