In October, the federal government reached an agreement on the budget for 2023 and 2024. The energy crisis smashed a new hole in the budget and the needs of private individuals and entrepreneurs are growing all the time. But what decisions has the government now made and what are the consequences for you as an entrepreneur?
Energy crisis
VAT on gas and electricity remains at 6 percent. This definitive reduction in VAT is offset by an excise duty system that is intended to absorb price fluctuations more effectively. The energy bill allowance for families will also be extended until the end of March.
There will be a windfall tax for the energy sector and a solidarity contribution for the oil sector. The revenue from both measures is to be used to support the competitiveness of businesses. This is to be done, inter alia, through exemption from employer contributions for the first two quarters of 2023 and the possibility of deferring contributions for the last two quarters of 2023.
Savings and taxes
The notional interest deduction, which has already been significantly reduced, will be abolished from the financial year starting after 30 December 2022. The notional interest deduction carried over from previous years can still be used. The company contribution will be indexed again for the first time since 2003.
After the abolition of the housing bonus at the Flemish level, the tax relief for second homes is now also being removed. For loans taken out after 2024, it will no longer be possible to fill the basket of long-term savings with capital repayments or outstanding balance insurance premiums.
The copyright tax regime will be reformed to bring it back into line with its original objectives. In the meantime, it has become clear that Minister Van Peteghem wants to severely cut the fiscally beneficial system. For example, his preliminary draft shows that only artists, authors, journalists and game developers would not be affected.
Pending the European minimum tax for large companies (target 2024), the Belgian government is going to introduce a one-off minimum tax. The percentage of the basket for the minimum taxable base in corporation tax is increased from 30% to 60% until the introduction of the European minimum tax. In concrete terms, this means that in 2023 only 40% of profits above EUR 1 million can be offset by tax deductions, such as previous tax losses.
It was also decided that students could work more favourable tax hours. The government wants to implement a tax shift that discourages the consumption of unhealthy products. And by the end of this year, there will be a broader tax reform to reduce the burden on labour.
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Do you have any specific questions about copyright payments, for example? Then please do not hesitate to contact us. Bofidi’s team of experts will be happy to help you.