1. Company cars: new rules

At present, when a company provides a car to its employees or managers, its non-deductible expenses are increased by 17% of the amount of the benefit in kind which is taxable on the part of the employee or manager. In addition this amount constitutes a minimum tax base.

When this benefit reduces due to the personal intervention of the employee, the basis on which the amount to be rejected must be calculated reduces by the same extent.

1. Accounting: offsetting orders in progress against payments received on account of orders

With the transposition into Belgian law of European Directive 2013/34/EU, this form of offsetting is now possible. In fact, Article 71 of the Royal Decree implementing the Company Code provides, by contract, for amounts in financial statements disclosed under the headings “Contracts in progress” and “Advances received on contracts” to be offset.

1. 15% on dividends: when will it be introduced?

The Programme Law of 28 June 2013 introduced a reduction in the withholding tax on dividends from new shares or units (the “VVPR-bis regime”) issued after 1 July 2013, provided certain conditions are met (articles 537 and 269, Section2 CIR).

This rate has been reduced to 20% then 15%, depending on the year of distribution or the year of profit distribution for the 2nd or 3rd financial year following that of the contribution.

1. Car expenses: Non Deductible Expenses (NDE) and “negative NDE”

Tax authorities acknowledge that when a benefit in kind that has been declared properly (i.e. reported on a fiscal form) is taxed in the head of an employee, this amount is deducted from the Non Deductible Expenses  (“NDE”). This administrative tolerance is not applicable to benefit in kind worn on current account.

What happens when the worker, employee or company director pays a contribution to his employer or his company for the private use of the car?