Law of 3 August 2016 establishing a new annual tax on credit institutions replacing existing annual taxes, deduction limitation measures for corporate income tax, and the financial stability contribution

FEDERAL PUBLIC SERVICE FINANCES
[C - 2016/03276]
3 AUGUST 2016. - Law establishing a new annual tax on credit institutions in place of the existing annual taxes, deduction limitation measures in corporate income tax, and the contribution to financial stability (1)

PHILIPPE, King of the Belgians,
To all, present and future, Greetings.

The Chamber has adopted and We sanction the following:

CHAPTER 1. - General provision
Article 1. This law regulates a matter referred to in Article 74 of the Constitution.

CHAPTER 2. - Establishment of the new tax on credit institutions in the Code of Various Duties and Taxes

Art. 2. Article 20111 of the Code of Various Duties and Taxes, inserted by the programme law of 22 June 2012, is replaced by the following:

"Art. 20111. A credit institution referred to in Article 20110 is liable for the tax on the average amount of its liabilities to clients during the year preceding the tax year. For the application of this article, the average amount of liabilities to clients is understood as the arithmetic mean of the amounts which, in accordance with the rules of the National Bank of Belgium within the framework of territorial reporting, must be mentioned at the end of each month of the said year, on line 229 of table 00.20 "Liabilities to clients" (column 05, Total amount) of Scheme A."

Art. 3. In Article 20112 of the same Code, inserted by the law of 22 June 2012 and replaced by the law of 30 July 2013, the words "at 0.0435%" are replaced by the words "at 0.13231%".

Art. 4. In the same Code, Article 20112/1 is inserted, worded as follows:

"Art. 20112/1. The annual tax does not apply to companies approved by the King as central depository of financial instruments within the meaning of the coordinated Royal Decree No. 62 of 10 November 1967 relating to the deposit of fungible financial instruments and the settlement of transactions on these instruments, or holding approval as an entity assimilated to a clearing organization in accordance with Article 36/26, § 7, of the law of 22 February 1998 fixing the organic statute of the National Bank of Belgium."

Art. 5. In Article 20113 of the same Code, inserted by the law of 22 June 2012, the following modifications are made:
1° in the first paragraph, the year "2012" is replaced by the year "2016"; 2° in the second paragraph, the words "and for the first time on 1 July 2012" are deleted.

CHAPTER 3. - Modifying and repealing provisions
Section 1. - Estate Duty Code

Art. 6. In the heading of Book IIbis of the Estate Duty Code, inserted by the law of 22 July 1993 and replaced by the Royal Decree of 18 November 1996, the words ", on credit institutions" are repealed.

Art. 7. In Article 161 of the same Code, replaced by the programme law of 22 December 2003 and modified by the laws of 27 December 2005, 27 December 2006 and 21 December 2007, by the Royal Decree of 3 March 2011 and by the laws of 12 May 2014 and 18 December 2015, point 4° is repealed.

Art. 8. At Article 161bis of the same Code, inserted by the law of 22 July 1993, replaced by the programme law of 22 December 2003 and modified by the programme law of 9 July 2004, the following modifications are made:
1° paragraph 4 is repealed;
2° in paragraph 6, the words "a credit institution or an insurance company referred to in Article 161, 4°, 5° or 6°" are replaced by the words "an insurance company referred to in Article 161, 5° or 6°".

Art. 9. At Article 161ter of the same Code, inserted by the law of 22 July 1993 and modified by the Royal Decree of 13 July 2001 and by the laws of 5 August 2003, 22 December 2003, 17 June 2013 and 30 July 2013, the following modifications are made:
1° point 2° is repealed;
2° at point 4°, the words "entities referred to in Article 161, 4°, 5° or 6°" are replaced by the words "entities referred to in Article 161, 5° or 6°".

Section 2. - Income Tax Code 1992

Art. 10. In Article 205, § 3, of the Income Tax Code 1992, inserted by the law of 21 December 2009 and modified by the law of 10 August 2015, the words "in application of Article 207, fourth to seventh paragraphs," are replaced by the words "in application of Article 207, fourth and fifth paragraphs,".

Art. 11. At Article 207 of the same Code, last modified by the law of 26 December 2015, the following modifications are made:
1° the fourth, fifth and sixth paragraphs are repealed; 2° in the seventh paragraph, which becomes the fourth paragraph, the words "in accordance with the seventh paragraph" are replaced by the words "in accordance with the fifth paragraph"; 3° in the eighth paragraph, which becomes the fifth paragraph, the words "referred to in the sixth paragraph" are replaced by the words "referred to in the fourth paragraph".

Art. 12. At Article 239/1 of the same Code, inserted by the law of 10 August 2015, the following modifications are made:
1° the first paragraph is repealed;
2° in the second paragraph, the words "sixth and seventh paragraphs" are replaced by the words "fourth and fifth paragraphs".

Art. 13. In Article 536, fifth paragraph, of the same Code, inserted by the law of 13 December 2012 and modified by the law of 10 August 2015, the words "Article 207, fourth to seventh paragraphs" are replaced by the words "Article 207, fourth and fifth paragraphs".

CHAPTER 4. - Transitional provisions

Art. 14. For the tax year 2016, a credit institution referred to in Article 20110 of the Code of Various Duties and Taxes is, by derogation from Article 20111 of the same Code, as replaced by Article 2 of this law, liable for the tax on the amount which, in accordance with the rules of the National Bank of Belgium within the framework of territorial reporting, must be mentioned on line 229 of table 00.20 "Liabilities to clients" (column 05, Total amount) of Scheme A on 31 December 2015. By derogation from Article 20113 of the same Code as modified by Article 5 of this law, the tax due for the tax year 2016 must be paid no later than 15 November 2016.

Art. 15. The amounts paid for the tax year 2016 as annual taxes on credit institutions in the Estate Duty Code and the Code of Various Duties and Taxes, as they existed prior to the entry into force of this law, are deducted from the amount due for the tax year 2016 in application of this law. From this amount, the financial stability contribution paid in 2016 referred to in the law of 28 December 2011 introducing a contribution to financial stability and modifying the Royal Decree of 14 November 2008 implementing the law of 15 October 2008 adopting measures to promote financial stability and in particular establishing a State guarantee for granted credits and other operations carried out in the framework of financial stability, as regards the protection of deposits, life insurance and the capital of approved cooperative companies, and modifying the law of 2 August 2002 concerning the supervision of the financial sector and financial services, is also deducted.

CHAPTER 5. - Entry into force

Art. 16. Articles 10 to 13 enter into force as of the tax year 2017.

We proclaim this law, order that it be sealed with the State seal and published by the Belgian Official Journal.

Given at Brussels, 3 August 2016.

PHILIPPE

By the King:
The Minister of Finance,
J. VAN OVERTVELDT

Sealed with the State seal:
For the Minister of Justice, absent, the Deputy Prime Minister and Minister of Employment, Economy and Consumers, in charge of Foreign Trade, K. PEETERS

Note
(1) Note
Chamber of Representatives (www.lachambre.be):
Documents: 54-1950.
Full report: 19 and 20 July 2016.