Government envisages lowering Corporation Tax to 20% between now and 2020
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    Government envisages lowering Corporation Tax to 20% between now and 2020

    © Belga
    Corporation Tax is, once again, under the microscope.
    © Belga

    The concept of reforming Corporation Tax, advanced by the Finance Minister, Johan Van Overtveldt (of the New Flemish Alliance), is currently a matter under consideration.
    One option on the table is a gradual decrease in Corporation Tax to 20% between now and 2020.

    The move may be compensated by an increase in the property tax. This is reported in the media publications L’Echo, De Tijd, De Morgen and Het Laatste Nieuws today (Wednesday).

    To finance the decrease in Corporation Tax, several avenues are being considered.

    Options include increasing property tax on dividends from 27% to 30%. This is a thorny issue, as all shareholders would thus have to effectively be involved in partly financing the Corporation Tax reduction.

    Alternatively the provision for the deduction of notional interest on shares could be removed.

    L’Echo reports that, moreover, a further option is to make the system of providing for the depreciation of company assets less advantageous.

    Lars Andersen
    The Brussels Times