Withholding taxes
As of income year 2013 (almost) all movable income is subject to a withholding tax of 25 percent. This means that dividends, interest and royalty income are subject to the rate of 25 percent. There are some exceptions, e.g. liquidation proceeds. The surcharge of 4 percent, implemented for income year 2012 is abolished as of income year 2013. Specific real estate investment companies will be subject to a withholding tax of 15 percent.
Capital gains on shares
A tax of 0.4 percent will be levied on capital gains on shares which are exempt from taxation under the current legislation. Small and mediumsized enterprises (SMEs) will not be subject to this tax.
Secret Commission tax
The Belgian government is also considering several mitigations and clarifications with respect to the secret commission tax:
- The tax (of 309 percent) will only be levied when the company refuses to inform the tax authorities about the person to who the advantage was granted or when the advantage cannot be taxed with the beneficiary (if the company has not completed forms 281.50).
- Small miscalculations and errors made in good faith will not be taxed when corrected within three years.
- 'Mixed cost' or 'private cost' will be taxed in the hands of the beneficiary (at progressive rates including communal taxes). These costs are not tax deductible in the hands of the company (if forms 281.50 were not completed).
- Furthermore, the government is considering reducing the tax rate of 309 percent and combining it with the non-deductibility of the tax.
Notional interest deduction
As of tax year 2014, the rate of the notional interest deduction is capped at 3 percent (3.5 percent for SMEs).
