Corporate Tax Reform 2019 – Part II

On 5 March 2019, the 2019 budget draft law was presented to Parliament.

The draft law introduces mainly the following corporate income tax measures with retroactive effect as from 1 January 2019:

  • A 1% decrease (from 18% to 17%) of the corporate income tax (“CIT”) rate;
  • A broadening of the scope of application of the reduced 15% CIT rate (now applicable up to a taxable income of EUR 175,000);
  • Specific rules on the application of the interest limitation rule in case of tax consolidation.

This tax alert provides an overview of the tax measures provided in the draft law. However, the proposed rules may still evolve throughout the legislative process.