Recently, the Belgian Government was gazettes the following federal end of year tax measures for corporate income tax in the State Gazette:

Changes regarding Corporate income tax:

• The corporate income tax exemption for communal joint-venture entities currently subject to the legal entities tax is abolished as of 2015. These entities are subject to the corporate income The separate secret commission tax of 309%, due on amounts which constitute hidden profits or expenses which have not been properly reported on salary and fee slips, is reduced to 103%.
• If the beneficiaries of the expenses are legal entities or if the hidden profit is recorded in the accounts of the taxpayer, i.e. to the extent he has not been informed (in writing) about an ongoing tax audit, the tax is 51.5%.
• The rules on the avoidance of double taxation are also adjusted.
• Furthermore, the legislator has clarified the term “hidden profits”, stated that the expenses and secret commission tax, generally, remain tax deductible, and implemented corresponding amendments in the non-resident income tax. These measures apply on all disputes that are not yet finally settled.
• Dividend taxation: From 2015, Small and medium sized companies may create a “liquidation reserve” from its after tax profits. The liquidation reserve is maintained on a separate equity owner’s account. The liquidation reserve is immediately subject to a separate tax of 10%. Upon liquidation, no dividend withholding tax is due. However, when the liquidation reserve is distributed before liquidation and within 5 years after its creation, a dividend withholding tax of 15% is due. Also thereafter, a withholding tax of 5% is due.