According to official gazette published on 8 December 2016, in Belgium, legislation implementing changes to the “Parent-Subsidiary directive” and introducing a spread or installment payment regime relating to the exit tax liability. The law contains provisions to implement changes to the Parent-Subsidiary directive, specifically an anti-hybrid and anti-abuse rule and provisions allowing the exit tax to be either made in a direct or spread payment.
Hybrid mismatches, dividends received deduction (DRD) will not be allowed for dividends paid by a company to the extent that such income has been deducted or can be deducted by the company from its profits.
Anti-abuse rule, the literal text of the anti-abuse rule in the Directive is copied into Belgian tax law. DRD or exemption of withholding tax will not apply for dividends linked to a legal act which is proven to be artificial and set up primarily to obtain the DRD, the exemption of withholding tax or any advantage of the directive in another EU Member State.
