The PwC report puts Belgium into a second place in Europe for corporate taxation. In order to win competitiveness, there is also a need to simplify the procedures with tax authorities.
After France, the most taxed companies in Europe are in Belgium. At € 100 of turnover, € 57.7 goes directly to state registries, whether in the form of contributions or social taxes. The perception comes from the PwC consulting company in its "Paying Rates" report. When compared to last year, when we were at 57.1%, the situation has changed very little. Belgium is predicted only by France showing 60% of tax and parafiscal pressures on its companies. The European average is only 39.3% while the world average (190 countries) is 40.4%.
Fluid the procedures
y social contributions The proportion of the lion: they account for 46.2% of expenses compared to only 10.9% for corporate tax. For Patrick Boone, a partner in PwC, there was a need to reform corporate tax. "It had to reduce the tax rate and subtract among tax gaps", poorly seen by international bodies (Europe, OECD, etc.).
"Belgium has a fairly efficient administration, but other countries are still up with digitization, and we are at risk of losing this competitive advantage if we are losing the digitization process."
But he would, in his opinion, be wrong to focus too much on corporate tax when it comes to comparing competitive levels. "Most current reforms in Europe tend towards corporation tax of around 20%, and in essence, based on the viability of the procedures and the formalities imposed by the tax authorities which we can win in extra competitiveness ", Believe there.
For example, a company established in Belgium must realize There are 11 payments per year to be in order with the tax manwhich represents 136 hours of work. The European average is 12 payments per year and 161 hours administration. The world average is even higher: 24 payments and 237 hours of work.
Another example is our investing companies 5 hours of work per year to recover VATcompared to an average of 7 hours in Europe and 19.6 hours worldwide. "Belgium has a fairly efficient administration, but the other countries are still up with digitization, and we are at risk of losing this competitive advantage if we are losing the digitization process."warns Patrick Boone. In concrete terms, there should be Online Tax for businesses, which currently exists for natural people only.
In terms of high social security contributions, a first shift has been started with tax shift and it aims to transfer part of the workload to other sources of income (capital, green taxation). "We must continue on this path", recommends Patrick Boone, while admitting that "he's politically elegant"as the contributions are being used to finance social protection.