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Belgium Budget Measures for 2017 including Increased Withholding Tax — Orbitax Tax News & Alerts

Belgium's program law for the implementation of the 2017 budget measures was published in the Official Gazette on 29 December 2016. The main tax-related measures include:

  • An increase in the top withholding tax rates on movable income (dividends, interest, royalties) from 27% to 30% for amounts paid or attributed from 1 January 2017;
  • An increase in the withholding tax rate on early distributions from liquidation reserves from 17% to 20% with effect from the 2018 tax year;
  • The repeal of the speculation tax for individuals (33%) on capital gains from the sale of listed shares if sold within six months of acquisition with effect from 1 January 2017;
  • The introduction of a regime for the recovery of the alleged State aid received by companies through excess profit rulings; and
  • The amendment of provisions regarding paid-up capital so that when shares are contributed to a company's capital and a gain is realized at the time of contribution and not treated as taxable miscellaneous income, the paid-up capital for tax purposes is the acquisition value of the shares for the contributor, and any excess repayment of capital will be treated as a deemed dividend (30% withholding tax from 1 January 2017).

Click the following link for the program law as published (Dutch and French language).