Belgium Budget 2013-2014
The draft Program Law (I) contains the following measures agreed upon in the framework of the so-called "relance plan":
- The scope of the reduction of employer contributions, provided in Art. 342-343 of the Program Law dd. 24 December 2002, is broadened from 3 to 5 employees (as of 1 January 2014);
- Increase from 20% to 40% of the exemption for employers relating to certain junior employees (Art. 67bis ITC) - as of 1 January 2014;
- Increase, from 130 to 180 hours, of (i) the tax reduction (Art. 154bis ITC) as well as of (ii) the payroll tax exemption (Art. 275/1 ITC) for overtime in the horeca and real estate works sector - as of 1 January 2014 for horeca; date to be fixed yet for real estate sector;
- Re-introduction of the one-off investment deduction for SME's relating to investments in new fixed assets in 2014 and 2015; the rate is fixed at 4% and the assets must directly relate to the company's planned or actual economic activity; furthermore, this investment deduction can only be claimed if the SME waives the benefit of the NID for the year of investment; unused investment deduction can only be carried forward for one year (Art. 201 ITC) - as of 1 January 2014;
- Increase with 2.2% of the payroll tax exemption for companies active in the so-called "full-continuous labour" industry (Art. 275/5, §3 ITC) - as of 1 January 2014;
- Increase from 8.95% to 14.4% of the tax credit for low-salary employees (Art. 289ter/1 ITC) - as of 1 April 2014.