Belgium’s Council of Ministers recently reached agreement on new tax measures for 2013. The Belgian government has already confirmed plans to increase the minimum wage and to reduce employer contributions from April 1. These measures are intended to stimulate employment and to boost purchasing power.
In order to encourage investment in small and medium enterprises (SMEs), the Government has a plan to progressively reduce the withholding tax imposed on SME dividends from 25% to 15%. The Government also has plans to increase the tax on tobacco and to modify the notional interest tax regime. The withholding tax on liquidation bonuses is to be increased from 10% to 25% with effect from 1 October 2014.
