A draft banking law is introduced by the Belgian Finance Minister.The Minister also confirmed has a plan to extend the favourable tax regime which is currently benefiting savings account interest in order include other types of savings and investment products, up to a threshold of EUR1,880 (USD2,485).
The Minister admits that as to whether or not share dividends should fall within the scope of the tax break, any decision has not as yet been taken.
Belgium is under pressure to revise these fiscally advantageous provisions. In June 2013, the European Court of Justice considered the regime to savings account interest payments made by resident banks, and not to those made by non-resident financial institutions, to be discriminatory.
The new bank law will provide that bankers’ variable pay is to be limited to a maximum of one year’s fixed salary. In accordance with the Belgian Coalition agreement, a ban is to be imposed on bonuses paid out to top bankers in cases where banks are in receipt of state aid. Possible exceptions to this rule are being considered.
