On 26 April 2019, Belgium published the Law of 13 April 2019 on abolishing the penalty for non-compliance with director's remuneration. In general, managing directors must be paid a minimum taxable amount of EUR 45,000. For 2018 and 2019, if the EUR 45,000 minimum is not met, a penalty in the form of a 5% levy was introduced on the difference between EUR 45,000 and the actual amount paid and was to be increased to 10% from 2020. With the Law of 13 April, this penalty levy is abolished retroactively from 2018.
Note - the law does not affect the requirement for SMEs to pay the minimum amount in order to be eligible for the reduced 20% corporate tax rate on the first 100,000 of profit.