Belgian Government Reaches Capital Gains Tax Agreement
The federal government of Prime Minister Bart De Wever (N-VA) has finalized an agreement on a capital gains tax following over 12 hours of negotiations. This measure, which has sparked division among coalition parties, is interconnected with crucial budgetary decisions and sets the stage for significant government spending cuts. Reports 24brussels.
The new tax is projected to raise 250 million EUR by 2026, potentially escalating to 500 million EUR annually by 2029. The legislation will implement a 10 percent levy on capital gains derived from the sale of financial assets, offering an exemption of up to 10,000 EUR to support small investors.
A solidarity contribution exemption will be applicable for individuals with a substantial stake (at least 20 percent) in a sold company, covering profits up to 1 million EUR. Taxation will be progressive for amounts exceeding that limit.
According to Deputy Prime Minister Frank Vandenbroucke of Vooruit, the 10,000 EUR exemption will remain intact under the new structure. Furthermore, a provision permits an increase of the exemption by 1,000 EUR annually if the capital gains are retained rather than immediately reinvested or expended, with a maximum duration of five years.
This agreement marks a significant step forward for the Belgian government as it navigates complex fiscal challenges amidst differing political viewpoints. The implications of this new tax regime are expected to influence the financial landscape for investors, particularly small-scale operators.
As the government prepares for broader implementation of budget cuts linked to this new tax, responses from various stakeholders, including financial experts and political analysts, are anticipated. Observers suggest that the effective reinforcement of this policy will hinge on the government’s capacity to balance interests across the ideological spectrum.
