On 31 January 2019, the parliament of Belgium approved legislation implementing the 30% of Earnings before interest, tax, depreciation and amortization (EBITDA) restriction on interest deduction to 1 January 2019. The restriction is according to the EU Anti-Tax Avoidance Directive, with an effective date of 1 January 2020.
The legislation includes an extension of the statute of limitations period for the tax authority to issue an assessment to 10 years in cases where a taxpayer exercises a legal arrangement in a low or no-tax jurisdiction with which Belgium has no Double Taxation Avoidance Agreement providing for exchange of information and an extension of the exchange of information on ultimate beneficial ownership to include jurisdictions outside the EU, provided that there is a legal basis for such exchange.
The legislation will enter into force once published in the Official Gazette.
