Belgian Government To Announce Company Tax Reforms Before Summer Recess

by Ulrika Lomas, Tax-news.com, Brussels

19 April 2001

At a news conference this week, Belgian finance minister Didier Reynders has announced that he expects the government to introduce plans for company tax reforms before the summer recess. The conference was called by Reynders to discuss a report he ordered from the Conseil Superieur des Finances on the framework and potential for reforming corporate tax.

Reynders stated: 'We will hold consultations on the report with the social partners, the Belgian National Bank, and the Banking and Finance Commission. The first orientations of the government will come before the summer. It will take some months.'

The government has already confirmed that the reform will involve a cut in tax rates but there will be a reduction in the scope for tax deductions. Mr Reynders said that the government intends to discuss ways to promote and support small firms as well as ending the 'crisis' levy that is currently added to all company tax bills.

The report noted that in 2000, Belgium's company tax of 40.17 per cent was at the top of an international scale when compared to Germany at 31.65 - 42.2 per cent and France at 40 per cent (before tax reforms in the latter two countries were instituted).

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