The Notional Interest Deduction has once again been under attack. Legal and Taxation Committee members Werner Heyvaert and Roel Van Werde step in to defend the NID and explain its critical role to keeping Belgian competitive in attracting foreign investment.

Don't miss AmCham Belgium's views on the Notional Interest Deduction! Roel Van Werde and Werner Heyvaert from our Legal & Taxation Committee defend the NID in our March issue of AmCham Connect (available under publications on this website).

In summary:

First, an across-the-board reduction of the nominal corporate income tax rate – gradually to 25% − would be healthy for the investment climate in Belgium, whereas the revenue generated for the Treasury, measured in absolute figures, would increase.

Second, the Notional Interest Deduction must be maintained to ensure the effective tax rate stays in line with Belgium’s nearest competitors and to prevent a perception that Belgium has an unstable and unpredictable tax regime, which is essential to attracting new foreign investment.

Third, the reduction of the “wage wedge” will mean an unprecedented stimulus for employment and inflate the taxable base of corporation tax.

In addition, there is the enormous efficiency gain to be booked, as many complex reductions in taxes and social security contributions can be eliminated at once – along with the inseparable administrative complexity that goes along with it.

Read the full article here.