Given the negative inflation rate, it would have been expected that, for the first time since indexation was introduced, the figures set down in the Belgian Income Tax Code might be adjusted downward.

However, the Government wanted to avoid this. Therefore, article 4 of the law on tax and miscellaneous measures, published on 31 December, contains a provision that the annual indexation of the figures contained in the Belgian Income Tax Code (for personal income tax purposes) cannot result in amounts lower than in the preceding year (new §7 in article 178 BITC92). Consequently, as of 1 January 2010, the figures will only be indexed for personal income tax purposes where an increase results, meaning that for income year 2010 there are almost no change compared to 2009.

An exception indeed applies to the non-recurring collective bonus system (article section 38, §1, 24 BITC92) and expense allowances for artists (article 38, §1, 23 – article 38, §4 and article 97, §2 BITC92).

The income 2010 figures confirming this have been published yesterday in the Official Gazette: http://news.hrservices.be/?lk201001211