The Belgian NID rate for tax year 2018 (accounting years ending between 31 December 2017 and 30 December 2018, both dates included) would be 0,237%. For SMEs (Small and Medium-sized Enterprises), the NID rate would be 0,737% for tax year 2018.
According to article 205quater, §2 of the Belgian Income Tax Code (“BITC”), the NID rate is calculated based on the average rates for straight line Belgian bonds on 10 year (index J) of the months July, August and September of the last but one year preceding the tax year. The rate is capped at maximum 3%.
Hence, for tax year 2018, (accounting years ending between 31 December 2017 and 30 December 2018, both dates included) the NID rate is based on the July, August and September bond rates of calendar year 2016. The average of these bond rates amounts to 0,237%. As a result, the NID rate for tax year 2018 would be 0,237% (0,737 for SMEs). For tax year 2017, the NID rate is 1,131% (1,631% for SMEs).
To the best of our knowledge, this NID rate has not yet been published in the Official Gazette or on the website of the Belgian tax authorities.
Please note that, due to the upcoming Belgium corporate tax reform, changes to the notional interest deduction might be introduced. For more information on this behalf, see the PwC news flash of 30th august 2016.
