At the occasion of the year-end 2001 this headline contains some of the personal income tax changes that will have effect as from income year 2002.

Wage withholding tax (Royal Decree of November 21, 2001)

The wage withholding tax rules applicable as from January 1, 2002 will take into account the following changes:

• The further abolishment of the special crisis contribution (maximum 1% for income year 2002 instead of maximum 2% for income year 2001);
• The increase of the lump-sum business expense (23% of earned income for the first bracket of EUR 3,750, instead of 20%);
• The decrease of the marginal income tax rate of 55% to 52%.

As from April 1, 2002 the wage withholding tax scales will be indexed.

Radio and television license fee in Flanders

According to a draft decree approved by the Flemish parliament, the income tax discount of BEF 2,500 (single person) or BEF 5,000 (married) granted by the Flemish government for income year 2000 will not be continued for income year 2001 (tax year 2002).

On the other hand, the Flemish government has on 30 November 2001 approved a draft decree with respect to the abolishment of the radio and television license fee in Flanders as from 1 January 2002. The draft decree is currently under review by the State Council and will be voted on early in 2002 with retroactive effect from January 1, 2002.