Belgium’s Government agreed to include a corporate tax cut in its 2018 Budget. According to the proposed change, the tax will be reduced in two steps: first in 2018 and then in 2020. The Budget for next year would also include a corporate income tax cut for small companies, which would have to pay a lower tax on their first 100,000 EUR. One of our lawyers in Belgium can help you with taxation matters if you are interested in investing in the country.
Corporate tax reduction starting with 2018
Belgium’s Budget for 2018 includes a two-step corporate income tax cut: the first stage of the cut will take place in 2018 and the tax will be reduced to 29%. After this initial stage, the tax will be further reduced to 25% in 2020.
The new Budget also includes a tax cut for small and medium sized companies. These types of business entities
already benefit from a reduced tax rate in Belgium, however, this will be further reduced when the new changes are implemented. The 2018 Budget will have a 20% corporate income tax for small businesses, on the first 100,000 EUR as opposed to the current 25% tax for the same first income amount.
Our team of lawyers in Belgium
can help you with more information on the manner in which companies in Belgium
can deduct interest and benefit from other effective tax reductions.
Taxation in Belgium
Belgium currently levies one of the highest corporate income taxes
in Europe: 33.99 percent. Corporate taxation is levied on a territorial level, for the profits derived from the country. All companies registered in Belgium are subject to this tax; other taxes for companies in Belgium include the value added tax, the transfer tax, the insurance premium tax, the payroll tax and other local taxes, as applicable in Wallonia, Flanders and the Brussels-Capital Region.
One of our attorneys in Belgium can give you complete information on business taxation and the reduced or exempt taxes that apply if a double tax treaty is signed (in case of companies that operate both in Belgium and in another country).