Government agreement on budget and recovery measures for 2013: tax measures

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The government Di Rupo I has reached an agreement on additional budget and recovery measures for 2013. Besides savings, the plan contains quite some tax measures.

The following tax measures have been agreed upon:

  • The application of the notional interest deduction rate for 2013 based on the OLO rate of the third quarter of 2012 (2.742%) (+0.5% for Small and Medium-sized Enterprises);
  • The levy of a 25% withholding tax (with a liberatory character) on income from moveable goods, with exceptions for liquidation bonuses, interest from recognized savings deposits, interest on the bond Leterme;
  • The levy of a 15% withholding tax on dividends from residential real estate investment companies with a fixed capital (“residentiële vastgoedbevaks/SICAFI résidentielles”) as from 2013;
  • The levy of a 0.4% capital gains tax on shares as from 2013 for “holding companies” (excluding Small and Medium-sized Enterprises) in cases where these capital gains are currently tax exempt;
  • The increase of excises on tobacco and wine;
  • The increase of the tax on life insurance premiums (branch 21 and branch 23) from 1.1% to 2% (except for group insurances, pension funds and “schuldaldoverzekeringen/assurances de solde restant dû”);
  • An increase of payroll taxes in case of temporary unemployment;
  • The increased combat of tax fraud;
  • A new tax amnesty.

Proposed measures that have not been withheld, include:

  • The increase of the 21% VAT rate to 22%;
  • The application of VAT to lawyers;
  • The increase of the withholding tax rate on liquidation bonuses;
  • The abolishment of certain tax reductions;
  • The introduction of a capital gains tax on shares for personal income tax purposes;
  • A minimum tax for corporate income tax purposes;
  • The non-deductibility of certain fines that are currently deductible for income tax purposes;
  • The application of the corporate income tax regime to “intercommunales”.

This is only a first summary of the measures. As additional information becomes available, we will provide you with more details in our future alerts and in our upcoming seminars and/or webcasts.