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.