Belgium to slash corporation tax to 25% Author: CDC

Reporters
Wed 26/07/2017 - 10:33 CDC It was at 3:30 AM this morning that government ministers finally reached agreement on a number of reforms to the Belgian tax and employment systems. Measures were also taken to shore up the budget with extra savings and fresh revenue worth 2.6 billion euros in 2018.

Belgium is to slash corporation tax from 34% to 29% next year. By 2020 corporation tax will have been cut to 25%. For SMEs the reduction is from 25% to 20%.

A new tax of 0.15% will be levied on securities accounts worth over 500,000 euros raising 254 million euros.

Capital gains tax on the first 627 euros of dividends from shares disappears, a measure intended to encourage share ownership.

The system of flexi jobs, often second jobs, on which no tax or social security contributions are required, is being extended from the hospitality industry to also include retail jobs e.g. in hairdressing and shops. People on a 4-day working week will be able to earn an extra 500 euros without paying tax e.g. babysitting, gardening, Uber taxi fares or Airbnb renting.

Legislation is also being introduced to stop employers bothering employees during the weekend.

Extra savings and revenue worth 2.6 billion euros will be needed to shore up the 2018 budget. The broad outlines of the 2019 budget have also been set out. A balanced budget will only be achieved later than initially planned.

In the field of social security visiting a psychologist will partially be refunded. The government also plans to abandon lifetime appointments in the public sector.