Incremental notional interest deduction is back for assessment year 2024
The incremental notional interest deduction (NID) will be positive again.
As a reminder, for an assessment year (e.g. AY 2024) the rate is calculated on the average return of the 10-year Belgian government bond in the months July, August and September of the penultimate year preceding the assessment year (e.g. 2022).
Given the fact that the rate for September has just been published, the NID rate can now be calculated.
The average return for those months in 2022 is 1,993%. However, the rate cannot differ more than 1% from the rate of the previous year (-0,057%), unless a Royal Decree sets another rate, limited to 1,933%. As a result, the rate is in principle set at 0,943% and is increased by 0,5% for SMEs, resulting in a rate of 1,443%. All rates are subject to official confirmation.
The NID rate for assessment year 2023 is 0% (0,443% for SMEs). Thoses rates have been confirmed in the Belgian Official Gazette of 19 September 2022.