On 2 March 2023, Mr. Vincent Van Peteghem, the Belgian Deputy Prime Minister and Minister of Finance has declared the government’s proposal for the first phase of major tax reforms. If adopted, the proposed measures will generally apply as from 1 January 2024.
Some of the main corporate tax measures include:
- Implementation of a global minimum taxation of 15% for multinational enterprises operating in Belgium;
- The dividends received deduction (DRD) will become a participation exemption;
- The scope of qualifying patents for the innovation income deduction will be limited to those with a novelty character;
- A three-rated system of investment deduction allowances will be introduced, including a basic investment deduction of 10%, a thematic investment deduction of 30%, and a technology investment deduction of 13.5%;
- The R&D tax credit will be expanded and renamed as investment tax credit; and
- The 80% rule applicable to second pillar pensions will be replaced with a new 12/32 rule.
