Further details have become available on the bill of program law the federal government intends to present to the parliament.
In addition to the abolition of the tax on speculative gains, some amendment to the stock exchange tax and various measures in respect of the tax procedure and VAT (e.g. reduced VAT rate for social housing), the program law will contain:
- As known, a further increase of the general withholding tax rate to 30% (currently 27%) as of 1 January 2017 and an increase of the withholding tax rate to 20% (currently 17%) for dividends distributed from a liquidation reserve build up as of assessment year 2018;
- An increase in the corporate income tax to 40% of the non-deductibility of expenses related to a company car (currently 17%) and, additionally, a provision that these expenses remain non-deductible even if the employee pays a contribution for the private use of the company car (as of 1 January 2017);
- A measures targeting capital reductions subsequent to a so-called internal private capital gain upon a contribution of shares. In these circumstance, the paid up capital is deemed to be the acquisition value of the contributed shares, having as a consequences that part of the capital reduction qualifies as a taxable dividend (as of 1 January 2017).
The program law will also contain various provisions dealing with the obligation of the Belgian State to recover the state-aid granted in the framework of the so-called “excess profit rulings” .