The Belgian government has introduced a “fairness tax” on companies. Due to compensation for losses or notional interest deductions, if companies dividends are paid and corporate tax is not paid, will be liable to pay this fairness tax.
In an accounting year, 5% fairness tax will be applicable on dividends paid by a company and 5.15% will be effective. Small companies get exemption from the fairness tax.The tax will be also applicable to non-residents.
Analyzing capital structures and dividend policies, companies can calculate the impact of this tax.
