On 26 July 2017, the federal government of Belgium announced various tax measures for the 2018 budget.
Corporate income tax rate
The rate of corporate income tax would be gradually reduced. Currently, the normal rate is 33.99%, will be reduced to 29% in 2018 and in 2019, and will further reduce to 25% in 2020.
Small and medium-sized enterprises will entitle a reduced tax rate of 20% will apply as of 2018 on that part of the taxable profit not exceeding 100,000 EUR, otherwise 25% tax rate will apply under current rules.
Tax exemption on capital gains
If certain conditions are satisfied, companies will benefit from a full tax exemption on capital gains realized on shares. This tax exemption will apply if a share participation is held for at least 1 year and amounts to at least 10% or has a value of at least 2.5 million EUR.
Fiscal unity
Starting from 2020 a fiscal unity will be possible for corporate income tax purposes. As a result of such fiscal unity the tax results of the various companies that are part of the same group will be consolidated for tax purposes, and will lead to one unified tax result for the entire group.
