Belgian corporate tax reform
Belgium has decreased corporate income tax rates, with start-ups, innovative companies and companies venturing into new investments expected to benefit the most.
The Belgian Government is lowering corporate tax rates with the aim of stimulating the economy and attracting foreign investment. Start-ups, innovative companies and companies venturing into new investments are expected to benefit most from this reform.
To compensate for the lower rates, the tax base will, in essence, be broadened by abolishing or reducing a number of existing tax deductions.
The corporate income tax rate will decrease from its current level of 33.99% in phases. In 2018 and 2019, the rate will be 29.58%, and from 2020 it decreases to 25%.
A rate of 20.4 % for SMEs will apply from 2018 on the first €100,000 of income. This rate will be further decreased to 20% from 2020.
From 2018 onwards, the 0.412% rate for capital gains on shares will be abolished and a 100% deduction on qualifying dividends will apply.