After some 500 days of negotiations, the Vivaldi coalition agreement finally saw the light of day. The most important measures are discussed below, point by point. You will notice that the coalition agreement reads more like an agreement in principle, setting out the broad outlines. The concrete implementation of the intentions set out below still has to be hammered out within the government and survive a vote in parliament.
- Possibly an extension of the temporary rate increase on the ordinary investment tax credit for an additional two years. Which would mean that the 25% rate would remain in place through December 31, 2022.
- Entry into force of the reconstruction reserve which will allow future profits, to the extent of the corona crisis losses incurred, to be temporarily exempted through a tax-free reserve for the 2022, 2023 and 2024 tax years
- All new company cars must be completely greenhouse gas free by 2026. In addition, employees who are not entitled to a company car today will be able to enjoy a mobility budget.
Personal Income Tax
- There will be no capital gains tax on shares or securities tax 2.0. There would, however, be a "millionaire's tax" that would take the form of a withholding tax on financial transactions carried out by persons with assets of more than EUR 1 million.
- Simplification of personal income tax where some deductions, tax credits and exemption regimes would disappear
- Expanding tax relief for child care expenses
- Increase in tax-free allowance for (grand)parents and dependent brothers/sisters, over age 65.
- As part of social housing policy, the government is extending the reduced VAT rate of 6% for the demolition and renovation of buildings to the whole of the Belgian territory.
- Narrowing the VAT Gap. Additional measures will be taken to reduce the VAT gap between what the government should receive and what the government actually collects.
Social security & employment
- The support measures that exist today will be gradually scaled back and replaced by a socio-economic recovery plan.
- The government aims for a public investment ratio of 4% by 2030.
- Temporary unemployment would be reformed in that workers who are on long-term temporary unemployment would be able to work temporarily for another employer.
Social security and pensions
- The government is committed to eliminating the large differences in social security performance between employees and the self-employed.
- The minimum pension is gradually increased towards EUR 1,500.00 net for a full career (and is therefore prorated for an incomplete career).
- The aim is to further generalize the second pension pillar to all employees: every employee would be entitled to a supplementary pension plan with a minimum contribution equal to 3% of gross salary.
- The lowest benefits will be gradually raised toward the poverty line.
Labor organization & compensation
- Employees would be entitled to an "individual training account", concretely each employee would be entitled to 5 training days per year. - The government will work out tax advantages for companies that grant their employees more training hours than the legal minimum.
- The extralegal forms of remuneration that benefit from a parafiscal favorable regime would be phased out.
- For the rest, the social partners are the main players: for a relaxation of night work, working hours, reintegration of long-term sick workers, protection against burn-out, etc., the social partners are called upon in the first instance.
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