Issuu on Google+

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).

Other provisions 

The bill also includes several changes in the areas of individual income tax, VAT, and tax procedures.

For more information about doing business overseas or to know more about our International Tax Consulting team please contact us. Subscribe to regular global tax compliance alerts from Nair & Co. International Business Guide (IBG) is our online platform for companies wishing to optimize their multinational operations and would like to have specific business information for doing business in a particular country - Click Here. Get the latest news releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts.

About Nair & Co. Nair & Co. provides you with your one touch outsourced finance, HR, legal and global tax compliance department for your international operations. If you are expanding abroad for the first time or increasing your global footprint, our turnkey solutions help you do so with minimal risk, stress and cost. We support 1000+ client operations in over 56 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP).Learn more at Read more on: Tips from global expansion expert

Belgium Budget 2013 Bill Concerns Miscellaneous Tax Provisions