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Notional Interest Deduction

Jan Werbrouck, Partner and Brent Springael, Associate, Brussels office of Benelux law firm NautaDutilh, discuss a recent development in Belgian tax law

 
Jan Werbrouck Partner and Brent Springael Associate Brussels office of Benelux law firm NautaDutilh discuss a recent development in Belgian tax law
 
On 30 June 2005 the law of 22 June 2005 was published in the Belgian State Gazette thereby abolishing the 0.5% tax on capital contributions to Belgian companies and allowing Belgian companies and Belgian branches to deduct from their tax base a fictitious or notional amount of interest based on their adjusted equity capital. Both measures will in principle apply as of 2006.
Introduction
 
For Belgian companies and...

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