ARTICLE · 25 AUGUST 2015

Belgian Government Reaches Agreement On Tax-Shift Plan

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On 23 July, the Belgian federal government agreed the budget review for 2015 and 2016 and the implementation of the long awaited tax-shift plan.

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On 23 July, the Belgian federal government agreed the budget review for 2015 and 2016 and the implementation of the long awaited tax-shift plan.

The aim of the tax shift is to reduce the Belgian tax burden on labour, improve the competitiveness of Belgian companies and create new jobs. The loss in tax revenue will be compensated with taxes on other incomes.

The agreement involves a number of new tax measures that may impact Belgian businesses:

Personal income taxes will be decreased for low- and mid-level wages.
Employers' social security contribution will be reduced gradually from 33% to 25%.
A limited speculation tax will be charged on capital gains realised on quoted shares sold within six months of their acquisition. Any losses from such a sale could be offset.

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