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Decrease in corporate tax is the eye-catcher in the budget agreement
The federal government is presenting a budget that will ensure higher, more investments and new jobs. With a package of new measures, it is keeping its promise to lend a helping hand to entrepreneurs and modernise the labour market. The single biggest eye-catcher among these measures is without doubt the reform of corporate tax.
Minister of Finance Johan Van Overtveldt has long urged a reduction in corporate tax intended to give businesses and SMEs the necessary oxygen to be innovative and to grow. “Corporate tax is becoming lower, simpler and fairer for our SMEs,” says the Minister with satisfaction. The reform will take place in phases. By 2020, the rate for all companies will fall from 33% to 25%. Already as from next year, a significantly reduced rate of 20% will apply to SMEs for the first EUR 100,000 of profit.
Modernisation of the labour market and the federal government
But that is not the only measure from which entrepreneurs and employees will benefit, and the government is also carrying out the following reforms:
- Night work in e-commerce will become easier and trade unions will no longer be able to use their veto against it.
- Thanks to additional tax cuts in the construction sector, we will continue the fight against social dumping.
- The federal government will no longer carry out any statutory recruitment, as a result of which the inequality in the current system will disappear. An exception will only be made for people with a position of authority.
- From now on, bakers, butchers and other retailers will be able to make easier use of flexi-jobs. The system is also being extended to pensioners who want to earn a little extra income in the hospitality industry.
- The trial period for employees is being re-introduced, the intention being to stimulate employment.
- Everyone will be able to earn an extra EUR 500 a month tax-free in leisure time work (sport, social profit, etc.) and the sharing economy.