Belgium Budget 2013 Bill Concerns Miscellaneous Tax Provisions (Sunnyvale, CA) - A Bill enclosing miscellaneous tax provisions related to the Budget 2013 was published in the Belgian Gazette on June 28. Nair & Co. which provides international tax consulting for companies expanding overseas lays down some of the most significant provisions of the Budget Bill: Research and development
In the final bill, the tax incentives connecting to research and development have been increased. As of July 1, the payroll tax exemption for R&D employees has been increased to 80 per cent from 75 per cent, which will significantly reduce the related labor expenses.
Small and medium sized enterprises (SME’s) will no longer require to have a research center in order to qualify for the favorable patent income deduction (Belgian’s patent box).This provision is applicable for the tax year 2014 (accounting years ending between (and including) 31 December 2013 and 30 December 2014. Notional interest deduction
Calculation method for determining the rate for the notional interest deduction (NID rate) has been modified slightly in the Bill. For example NID rate will be 2.742 per cent (+0.5 per cent for SME’s) for the tax year 2014. The cap of three per cent (3.5 per cent for SME’s) remains applicable (but does not apply this year since the NID rate is below the cap).
The bill also includes several changes in the areas of individual income tax, VAT, and tax procedures.
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Published on Aug 8, 2013
Published on Aug 8, 2013
Nair & Co. which provides international tax consulting for companies expanding overseas lays down some of the most significant provisions of...