As of 2018, the corporate tax rate has been reduced to 29% (versus 33% previously). In 2020, it will fall to 25%. At the same time, a number of new measures will increase the corporate tax assessment base.

Corporate tax rate reduction

What is the key change brought in with the corporate tax reform? It is the reduction of the corporate tax rate  to 29% (29.58% with the supplementary crisis contribution) from the beginning of 2018, with a further reduction to 25% in 2020.

At the same time, there are several other measures intended to increase the tax assessment base.

Measures intended to increase the corporate tax assessment base

• Deductible notional interest
  The amount of deductible notional interest will no longer be calculated on the basis of the company’s equity, but on the increase in such equity.
• Minimum taxable base
  A minimum taxable base will be introduced for each company having taxable profits in excess of EUR 1 million (by way of a limit on the deduction of losses carried forward and the deferral of the notional interest deduction and the innovation income deduction). 
• Capital reductions
  The amount of capital reductions must be allocated proportionally to paid-up capital and to reserves, so that the amount allocated to the latter will be considered as a dividend, taxable at 30%.
• Exemption of capital gains on shares
  The exemption of capital gains on shares will be subject to an additional condition: an interest of at least 10% or EUR 2.5 million in the target company. This new condition is in addition to the pre-existing conditions, namely holding an interest in a taxable company for at least one year.

Further information on 2018 Belgian tax news 

• Video on the tax on securities accounts
• Video on the Reynders tax

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Bernard Goffaux
Head of Estate Planning

For more information on the impact of these tax changes on your personal situation:

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