Belgium: Selected Issues

March 17, 2017

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Format: Chicago

Belgium: Selected Issues, (USA: International Monetary Fund, 2017) accessed October 6, 2024

Summary

This Selected Issues paper explores key features of Belgium’s corporate income tax (CIT) regime as background for potential growth-enhancing reform options that also safeguard revenues and limit distortions. Comprehensive reform of business and investment income taxation in Belgium is both promising and challenging. The challenge arises from the need for fiscal consolidation and the limited scope for shifting the tax burden away from the CIT to other taxes. The absence of capital gains taxation undermines tax neutrality between different forms of businesses, leading to organizational inefficiencies and a misallocation of capital. Overall, there appears to be scope for a broader reform that could raise Belgium’s growth potential without undermining fiscal revenues.

Subject: Corporate income tax, Corporate taxes, National accounts, Personal income, Personal income tax, Tax incentives, Taxes

Keywords: CIT base, CIT rate, CIT revenue productivity, Corporate income tax, Corporate taxes, CR, Debt ratio, Europe, Impact of the NID, ISCR, NID rate, Personal income, Personal income tax, Rate cut, Rate of return, Rate structure, Revenue productivity, Tax incentives, Tax rate

Publication Details

Pages:

25
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2017/070
Stock No:

1BELEA2017002
ISBN:

9781475587692
ISSN:

1934-7685

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