Supernote De Wever – Tax Measures (January 2025)

The negotiators of the federal Arizona government are approaching their proposed deadline, and from De Wever's latest comprehensive note, we outline the key intended tax measures. The note includes measures that may impact entrepreneurs, such as the dividend received deduction, the liquidation reserve, the legal anchoring of an exit tax, a specific 'carried-interest' regime, copyright-related rules, and the much-debated capital gains tax (referred to as the 'solidarity contribution').

Movable Taxation

-    Solidarity Contribution (formerly: ‘capital gains tax’) on financial assets and crypto investments): 

• 5 pct. (instead of 10 pct.)
• Listed shares: exemption reduced from €10,000 to €6,000 in profit
• Non-listed shareholdings > 5%: exemption threshold up to €5 million in profit
• Deductibility of losses within the same year, without carryover

-    Copyrights (fiscal incentive regime)

• Preferential withholding tax rate increased from 15% to 20%
• Digital professions (e.g. software developers) would again fall within the scope

-    Liquidation reserve:

• Preferential withholding tax rate on distributions after the waiting period increased from 5% to 6.5% (resulting in an effective tax burden increase from 13.64% to 15%)
• Waiting period reduced from 5 to 3 years

-    Specific ‘Carried interest’ regime (managers of private equity funds):

• Rate (?) capped at 30 pct
• No impact on existing plans

Residence and Family Taxation

-    Abolition of the federal interest deduction for non-owner-occupied properties
-    Phasing out of the marital quotient
-    Alimentations: tax deductibility limited to half

Corporate Taxation

-    Participation Exemption (DBI/RDT)

• Reform into an exemption (instead of a tax deduction)
• Participation requirement:
  • Minimum acquisition value increased to € 4 million (instead of 2.5 million euros), and the participation must have "the nature of a financial fixed asset" (durable relationship) OR;
  • Minimum 10% participation (unchanged).
     
  • Tightening of the measures would not apply to SMEs or investments in start-up companies: the original DBI regime remains intact then.
  • The DBI SICAV system remains in place, provided compliance with the minimum remuneration for company directors (new condition).

-    Higher minimum remuneration for company directors

Exit Tax for Emigrating Legal Entities:  

legal anchoring

VAT

-    21% VAT on combustion boilers (regardless of the age of the property).
-    Extension of the transitional measure "demolition and reconstruction – 6% VAT" for property developers.

Miscellaneous Duties and Taxes

-    Annual Tax on Securities Accounts (ATSA): increase from 0.15 pct. to 0.25 pct. 
-    Aviation Tax: the same rate (€ 5) for all flights (regardless the distance of the flight).

Excise Duties

Higher excise duties on tobacco and ‘vapers’.

Payroll Taxation

-    Stock options for Employees:

• Solidarity contribution of 5% for employees (compensating social security contributions).
• Likely introduction of a specific regime for SMEs.

-    Reduction of tax burden on labour from 2027 onwards:

• Increase in the tax-free allowance.
• Abolition of the Special Social Security Contribution (BBSZ).

Fraud Prevention

Allocation of additional resources for audits.

The recent note on the government negotiations provides an initial insight into the potential tax reforms and policy priorities of the future government. While this note outlines a framework for the direction that appears to be intended, we emphasise that its content is not yet final. The ultimate decisions will depend on further negotiations and the outcome of the political process.

If you would like to receive additional information on this matter or require tax assistance, the RSM Belgium Tax team is at your disposal ([email protected]).