Context :

As already mentioned in previous PTX headlines, the Council of Ministers recently adopted the bill of law of the so-called “Program Law 2003″, containing various Income Tax implications, with, among others, a change in the taxation of stock-options and a framework for private PC plans(*).

The bill of law was adopted by the Commissions of the Chamber of Representative on 5 December 2002 and has still to be adopted in plenary session (foreseen for 13 December 2002).

The news :

According to another article of this bill of law, the non-resident additional income tax rate (local tax equivalent) will increase from 6% to 6,7% of the total income tax payable for the income of 2003.

The text also specifies that, as from income year 2004, the King will be able to increase this rate up to 7% by a Decree of the Council of Ministers.

The total marginal tax rate will thus amount to 53,35% for the income of 2003 (50% marginal income tax rate and 6,7% local tax).

Please note that the above changes have still to be adopted by the Chamber and may still be amended.

The bill of law can be found at: http://www.hrconsulting.be/headline.html?lk=200212091

(*) http://www.hrconsulting.be/headline.html?ph=200210291816
http://www.hrconsulting.be/headline.html?ph=200211261436