BRUSSELS: Belgium, a global hub for international government institutions, wants to attract more Korean investment with its business-friendly tax regime.
At the “Belgium: Gateway to Europe” seminar at the Koreana Hotel on Oct. 27, the event host, the Embassy of Belgium, invited Bart Adams, chairman at the Fiscal Department for Foreign Investments of the Ministry of Finance in Belgium, to give a presentation on Belgium’s corporate tax system. Marc De Vestle, counselor for trade and investment at the embassy, and Chief Financial Officer at Korean investment company NXMH Hong Jong-hyun also shared information and a case study on Belgium’s business environment.
“Belgium is a country full of small and medium-sized companies that produce chemicals, machinery, financial software, broadcasting technology and many more,” Belgian Ambassador to Korea Francois Bontemps said. “This network of SMEs is very connected, so what you are investing in Belgium not only increases your productivity, especially tax incentives, but also improves your creativity, which is important today.”
According to Invest in Belgium, the corporate tax rate is about 33 percent. But under certain conditions, a reduced progressive rate of 24.98 percent applies. Since 2006, the Belgium parliament has passed into law the notional interest deduction through which companies are allowed to deduct a fictitious interest calculated on the basis of their shareholders’ equity. The country also has investment deductions on certain types of investment, reduced salary costs and the carry forward of losses.
In terms of research and development, Belgium receives the third-highest amount of expenditure from foreign companies.
“We offer high-quality research facilities with unparalleled research and development incentives,” the chairman said. “For example, U.S. firms spend 10 times more in the EU than in China and India combined.”
