The tax measures under the budget control proposals previously announced by the Belgian government were adopted on 18 July 2013 by Parliament.The new “fairness tax” is included in the measures.
Imposition rate of the fairness tax will be 5.15% (consisting of 5% which is to be increased by a 3% crisis surcharge) and is to be made as part of pre-payment estimated remittances. Provisions regarding fairness tax are:
- The tax not be deductible;
- The fairness tax will be due in all situations;
- The tax will not apply to small companies;
- The fairness tax is applicable both for the tax period for which dividends are distributed and non-resident companies (i.e. companies with a Belgian permanent establishment); and
- The amount of tax payable will have to be determined under a three-step formula.
The bill is now waiting for ratification to be published in the Belgian Official Gazette in order to take effect. The fairness tax will be effective as of assessment year 2014.
