Notional interest deduction rate in Belgium - KPMG Global
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Belgium: Notional interest deduction rate 0.746% for assessment year 2019

Notional interest deduction rate in Belgium

The rate for the notional interest deduction that applies for assessment year 2019 will be 0.746% (subject to official confirmation).


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The Belgian notional interest deduction regime allows a deduction for a percentage of the adjusted equity capital of a company, from the basis of its assessment for corporate income tax. The equity capital is then reduced by the net value of the assets of permanent establishments, the income of which is exempt from Belgian tax by virtue of an income tax treaty. The rate for the notional interest deduction is calculated on the basis of the average return of a 10-year government bond (OLO) in the months of July, August, and September of the penultimate year preceding the assessment year (e.g., 2017 for assessment year 2019).

For assessment year 2019, the average return and the notional interest deduction rate will be 0.746% and will be 1.246% for small and medium size enterprises. As a reminder, the rate for assessment year 2018 is 0.237% (0.737% for small and medium size enterprises).


Read a September 2017 report prepared by the KPMG member firm in Belgium

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