What to expect of the changes to the copyright tax regime
On 18 November 2022, the Council of Ministers approved the 2022 Program Law (the “Draft Law”) introducing a number of changes to the existing tax treatment of copyright related income under Belgian tax law. This is a special personal income tax regime where income from copyright is taxed in the hands of the individual copyright holder at a flat rate (the “Copyright Tax Regime”).
According to the statements made by the Minister of Finance, these changes have essentially been suggested in an effort to limit the budgetary impact of the existing legislation, as well as to put an end to the alleged tax abuse of the Copyright Tax Regime.
The main features of the Draft Law are described in the summary attached below. Please note that the Draft Law has not yet been approved by Parliament and is hence subject to change. The Draft Law should normally be adopted by Parliament by the end of this year, for it to enter into force as from 1 January 2023.