On Friday 18 December, the Belgian Parliament approved new measures as part of the new tax shift. Most of these measures will come into force from 1 January 2016. Three main types of measure were approved, involving a total of 7.2 billion euros, of which 4.45 billion is to boost purchasing power and 2.9 billion is to increase the competitiveness of companies, by reducing employer contributions.
First of all, the adopted measures will reduce the tax on individuals’ income, by increasing the thresholds for fixed rate deductions, increasing the tax-free allowance and revising the existing tax brackets. This last measure, which will come into force in 2019, will remove the 30% tax bracket and will progressively increase the upper limit of the 40% bracket. From 1 January 2016, it is estimated that the tax shift will immediately cause a net gain of 44€ for half of taxpayers. The government
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