draft bill on various (corporate) income tax measures submitted to parliament

On 11 June 2018, the draft bill on various income tax measures was submitted to the parliament (link).

The main objective of the draft bill is to complete and amend the corporate income tax reform of 2017.

Noteworthy is that:

  • a new anti-abuse provision for notional interest deduction targets so-called “double dips”. Direct or indirect capital contribution which are used to grant loans to group companies will not be taken into account in determining the amount of risk capital (as of assessment year 2019);
  • the bill makes clear that in order to benefit from the reduced corporate income tax rate (20,40% – assessment year 2019), a company must grant the minimum salary (half of the profit up to a minimum of 45,000 €) to a director which must be an individual (as of assessment year 2019);
  • the bill refers to the decision of the Constitutional Court of 1 March 2018, while finally abolishing the fairness tax, indicating that the tax remains in place for assessment year 2018 and prior years;
  • the bill remediates certain flaws and imperfections in respect of the proper implementation of the ATAD directive (mainly CFC-provisions, exit-tax and interest deduction limitation), stating that the directive has priority over any intra-EU income and capital tax treaty.

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