Tax

From 1 January 2025, significant changes will be introduced to the VAT chain. The 'VAT chain' encompasses the entire VAT procedure, including periodic VAT returns, payments, and controls by the tax authorities. The changes will be introduced in stages by the Belgian administration.

On November 12, 2024, Minister of Finance Van Peteghem announced in a press release that the transitional arrangements for the reduced VAT rate on sales after demolition and reconstruction will be extended.

As holiday homes are often not used year-round, they are frequently rented out, usually through online platforms such as Airbnb. Since 2021, these platforms must share information with the Belgian tax authorities, leading to an increase in inspections.

From 1 January 2026, Belgian VAT-registered businesses will be obliged to use structured electronic invoices in a B2B context. In order to cover the costs involved, the legislature has introduced two supportive tax incentives for self-employed individuals and small companies.

As of tax year 2024, entrepreneurs and companies renting real estate will be required to attach the new form 270 MLH to their income tax return. We highlight some important considerations that may be relevant when filing your corporate tax return.

If you own property in France, you are undoubtedly familiar with the Taxe Foncière. This annual tax is levied on both developed and undeveloped properties. Notably, this year, the tax has risen by at least 3.9% compared to last year.

At the end of 2023, the European Commission raised the threshold values for the size criteria for companies and groups, in response to the high inflation rates of recent years. These increased thresholds have now also been incorporated into Belgian law.

What happens when a property that has been considered a fixed asset for more than five years prior to the sale, undergoes renovations that were completed less than five years ago? Can the taxation of the capital gain from these renovations also be spread?

This article discusses several tax topics related to the remuneration of company directors. All remuneration granted or attributed to an individual for their role as a director or manager is considered a director's remuneration.

In order to determine whether a company is considered a small company or not, certain thresholds have to be taken into account. Recently, these thresholds were changed by the final approval of the bill in the plenary session of the Chamber.

Since January 1, 2024, a minimum tax for multinational enterprise groups (MNE groups) and large domestic groups has been introduced in Belgium. This is the implementation of the OECD/G20 recommendations and European Directive 2022/2523 into the Belgian legislation (Pillar 2).

Companies that invest in innovation can benefit from several tax incentives. For instance, companies with certain intellectual property rights can take advantage of the innovation deduction. This deduction is calculated based on the income generated from these intellectual property rights.

The legislator initially planned to implement several important VAT changes at the beginning of 2024. However, these changes have been postponed and will now take effect from January 1, 2025, as stipulated in the law of March 12, 2023, which was postponed via a Royal Decree.

On 16 May 2024, the Constitutional Court issued a ruling on the alleged discrimination in the reformed copyright regime and its scope, which has been in force since 1 January 2023. The Court ruled that there was no discrimination

With so many changes to the rules of demolition and reconstruction of private homes , each with different conditions and areas of application, it is essential to clarify everything once again.

At the end of 2023, the federal government reached an agreement on the reform of the investment deduction. The law replaces the current maze of measures with a system based on three "tracks" with fixed percentages.

A number of legislative changes have increased the importance of filing returns on time. In this article, we give a brief summary of the recent changes and the possible consequences of late submission of VAT returns.

Recently, the administration published a tolerance regarding the obligation to provide information for mixed and partial taxpayers applying the general pro rata or actual use.

The new legislation on Controlled Foreign Companies (CFCs), published at the end of December 2023 and applicable from the 2024 tax year (financial years ending on or after 31 December 2023), significantly extends the scope of the CFC regime.

A disadvantage of operating as a one-man business or sole proprietorship is facing higher tax pressure in personal taxation. Fortunately, there are several ways to alleviate that burden.

VAT deduction can occur based on the general pro rata figure or through the application of actual use. Recently, mixed taxpayers have been required to report the use of these methods through a notification.

Until now, some companies have been able to avoid this obligation by being creative with the dates of their payments. However, this will no longer be possible from the 2024 tax year.

From 1 January 2025, Belgian taxpayers will be able to apply the 'exemption for small enterprises' abroad. This extension will ensure that companies with a limited turnover that wish to expand their activities abroad will no longer have to register for VAT or file VAT returns there.

In order to check the accuracy of tax returns, the tax administration may decide to visit a taxpayer. Although the tax authorities are bound by legal provisions when carrying out these fiscal entries, there is often debate about the limits of the law. Two recent Supreme Court decisions provide more clarity.

On 28 December, the Chamber of Deputies approved a bill containing various tax provisions. The most important of these are the broadening of the tax base and the modernisation of the patrimonial tax rate.

Mixed taxable persons should always limit their right to deduct for incoming transactions. They can do this on the basis of the general pro ratio figure or the actual use. To date, no prior formality was required to apply the general pro ratio figure. However, this will change in 2024.

On Thursday 15 December, the law introducing the minimum tax for multinational companies was approved by the Chamber of Deputies. The law will enter into force on 31 December 2023 and will apply to financial years starting on or after 31 December 2023.

A Royal Decree was published on 12 October 2023 establishing the scales and methods of application of the administrative fines imposed on taxpayers who fail to spontaneously declare their real estate. These penalty scales also apply to foreign real estate.

From 1 January 2024, the federal tax deduction for capital repayments on mortgage loans for the construction, acquisition or conversion of a property located in the European Economic Area (EEA) will be abolished.

Portugal has long been known as a tax haven for foreigners. This was due to the 'Non-Habitual Residence Regime' (NHR), under which certain foreign income was taxed at a low rate or even completely exempt for 10 years. The government has now announced the abolition of the regime from 2024.