Belgian Corporate Tax Reform

On 22 December 2017, the Belgian Federal government has reached an important agreement on a large corporate tax reform package, which already takes effect on 1 January 2018. The most important measure is that the Belgian corporate tax rate will gradually decrease from 33% to 29% as from 2018, ending up at 25% by 2020. Small and medium-sized enterprises (SME) can even benefit from a reduced rate of 20% as from 2018.

The Belgian participation exemption for dividend income was up till 2017 limited to 95%. As from 2018 Belgian holding companies can benefit from a 100% deduction on dividend income received. This measure should increase Belgium’s attractiveness for setting up holding companies.

Our Belgian alliance partner, Van Havermaet, published an article on the subject. To read the complete article, please click here.