7/29/2019 Belgium Offers New Tax Incentives for Business Entities and Entrepreneurs: Updates from International Tax Consul…

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Belgium Offers New Tax Incentives for Business Entities and Entrepreneurs: Updates from

Nair & Co.’s International Tax Consulting Team 

(Sunnyvale, CA)- Belgium recently announced new tax incentives for individuals and companies that include

reduced tax on pensions and profit deductions for small employers, said Nair & Co., which provides international

tax consulting for companies expanding overseas. The new tax regulation is for the tax year 2013 (assessment year

2014).

Key highlights of the Belgium Tax updates prepared by the international tax services team at Nair & Co.

Belgium Tax Update: Incentives for Business Entities  

No minimum limit has been set on carry forward of unused investment deduction (Does this refer to

duration i.e. u can carry forward to any number of years?). However, maximum carry forward limit hasbeen set at € 933,350. 

Companies that opt for R&D credit of 33.99% on the invested amount are not eligible for deductions that

relate to assets used for the R&D activities. On the other hand, they can claim unlimited carry forward for

a maximum amount of € 466,670 for the unused part of investment deduction. 

Notional Interest Deduction (NID) is 3% for business entities and 3.5% for SMEs.

Companies with up to 11 employees are eligible for a profit exemption of:

1.  € 5,600 for each additional employee 

2.  € 15,050 for managers 

Maximum business, professional or employment income can be allocated as follows:

1.  € 13,100 for working spouse 

2.  € 10,090 for non-working spouse (huwelijksquotiënt)

Belgium Tax Update: Individual Taxation 

Based on the new tax schedule, tax rates applicable on taxable annual income for individuals are:

1.  Up to EUR 8,590 will be taxed at 25%;

2.  Between EUR 8,590 to EUR 12,220 will be taxed at 30%;

3.  Between EUR 12,220 to EUR 20,370 will be taxed at 40%;

4.  Between EUR 20,370 to EUR 37,330 will be taxed at 45%; and

5.  Above EUR 37,330 will be taxed at 50%.

Basic Allowance entitlements for individuals are:

1.  For those with taxable income up to € 25,990, they would be entitled to € 7,270; and  

2.  For those with taxable income of more than € 25,990, they would be entitled to € 6,990. 

Increase in Basic Allowance for children is as follows:

1.  1 child is € 1,490; 

2.  2 children is € 3,820; 

3.  3 children is € 8,570; 

4.  4 children is € 13,860; and 

5.  For families with more than 4 children the allowance is € 5,290 per child. 

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6.  Single parents with children are allowed for an added allowance of € 1,490  

Belgium Tax Update: Tax on Pension and Saving Deposits 

Tax on pensions is reduced by € 2,024.12 

Savings deposits interest has been exempted up to € 1,880. 

Our international expansion services includes a full service human capital consulting and international tax

compliance group that can help companies formulate http://www.nair-co.com/pensions-advisory-

service.aspx across 50+ countries.

Belgium Tax Update: Deductible Employment Expenses 

Based on the new tax regulation, maximum deduction allocated on employment expenses are as follows:

€ 3,900 for employees; 

€ 2,340 for directors; and 

€ 7,900 for childcare. 

Subscribe to regular global tax compliance alerts from Nair & Co. http://www.nair-co.com/subscribe.aspx 

For more information on this topic email media@nair-co.com or to know more about our international tax

consulting team and international tax services please contact us at http://www.nair-co.com/global-offices.aspx 

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 4000+ 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 www.nair-co.com 

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