12 October 2022

The federal government has taken a number of budgetary measures that affect your operation and sector. Decisions ranging from a minimum tax to energy were taken on 11 October 2022. Addressing the ongoing energy crisis, limiting the budget deficit and boosting employment are some of the key issues that shaped the agreement. The Belgian government has reached an agreement.   

Changes related to fiscal measures  

1.- No patronage contributions on wage indexation  

The proceeds of the excess profits tax will finance a support mechanism for the competitiveness of companies facing sharp wage cost increases due to automatic indexation.    

The government is responding to the demand of companies to ease the pain of wage indexation. In several sectors, automatic wage indexation of around 10 per cent is scheduled to take place in January 2023. Other companies have already had to make several wage indexations in recent months.  

The government has decided that companies will get a reduction in employer contributions in the first and second quarters of 2023.  

2.- Company contribution will be indexed  

The government will again index the company contribution. This contribution will have to be paid annually by each company.  

3.- One-off (Belgian) minimum tax  

The Belgian government decided to introduce a one-off measure reducing the use of tax funds from 70% to 40% (above the threshold of €1 million). The expected entry into force is on 1 January 2024. This measure would only apply until the system is implemented in Belgian law and would result in a minimum tax rate of 15% for companies using tax assets carried forward.  

4.- Notional interest deduction abolished  

The national interest deduction would be abolished for large companies and remain available only for small and medium-sized companies.   

5.- Possible copyrights curtailed  

The scope of the copyright regime will be limited and is likely to apply only in situations of direct commercialisation of copyrights.  

6.- The flat-rate foreign tax credit scheme    

This 15% foreign tax credit regime on royalties will be limited to the foreign withholding tax actually applied.  

Amendments related to energy  

The agreement related to energy translates into the introduction of a surplus tax in the energy sector until June 2023 (with a possibility of extension). As well as the permanent reduced VAT rate of 6% on gas and electricity with a reform of excise duties on gas and electricity  

1.- Flanders  

For companies in the Flemish Region affected by rising energy prices and experiencing problems with employment, production and purchasing power, the Flemish government has put together a support package. On the one hand, compensation for increased energy costs and the extension of available loans, and on the other hand, the launch of an impulse programme to accelerate energy transition.    

2.- Wallonia  

The Walloon government decided on some support measures to cope with businesses in early October 2022. These range from direct support for companies affected by high energy prices to assisting the most electricity-intensive industrial plants.   

Now what about the decisions?  

In the next step, the agreed measures must be turned into legislation and go through the required parliamentary procedure before they are published in the Belgian Official Gazette and enter into force. FI Group consultants keep informed about the latest changes as to support your project and enterprise with the most updated measures.

FI Group has 20 years of experience and wants to support you in understanding and exploiting the available R&D+I opportunities. Our experts are at your disposal to analyse your project and take the next steps together with you towards innovation.  

Yvette Poumpalova

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