On 9 October 2023, the Belgian government agreed on Budget measures for the fiscal year 2024. Here is a broad summary of the key tax measures in the budget agreement, as announced by the finance minister. The proposed key measures are following:
Real estate fund investments
The conditions for holding real estate investment funds in Belgium is expected to be more stringent, given that a minimum holding period will be introduced.
Banking tax
The government is implementing a policy that seeks greater financial contributions from financial institutions. This involves eliminating the tax deductibility of existing levies on banking, credit institutions, and investment funds. Furthermore, the banking tax will transition to a progressive system, where larger financial institutions, particularly those with a substantial number of savings accounts, will be subject to higher tax obligations.
Investment Deduction
The application of the investment deduction will undergo simplification, and a significantly increased investment deduction will be introduced for socially responsible and sustainable investments.
CFC regulations
The government proposes further strengthening the Controlled Foreign Company (CFC) rules to curb international tax avoidance. In 2018, Belgium introduced the CFC legislation as a complementary law to the EU Anti-Tax Avoidance Directive (ATAD).
