SWI 2018, 249
Belgium’s government has recently passed a package of tax reform laws with the main objective to encourage investment in the Belgian economy and create new jobs. The main measures in the area of corporate taxation are the gradual reduction of the corporate income tax rate to 25 % in 2020 and the introduction of a full participation exemption, as well as a group taxation regime. To foster growth, the notional interest deduction and the patent box regime, offering one of the lowest effective tax rates worldwide, are maintained. On the other hand, Belgium will also gradually introduce anti-abuse provisions into tax law, such as an interest barrier, a more stringent exit tax, CFC rules, and various deduction limitations for hybrid transactions. Johan De Ridder and Stefan Raabgive an overview of the Tax Reform Act in Belgium.
SWI 2018, 125
Tax competition amongst countries to attract research investments has accelerated enormously in recent years. Patent boxes are one of the main reasons for this development. A patent box is a special tax regime used by an increasing number of countries to create incentives for research and development by subjecting revenue from intellectual property to a significantly lower tax than other revenue. Beside the introduction of new patent boxes, many countries have recently responded to the changing OECD and EU requirements („nexus approach“) by adjusting their patent box regimes. In the following, Stefan Raabgives an overview of established IP boxes and provides an outlook on possible future developments.