2023-07-29 10:28:46
July 28, 2023 Today at 06:01
The government last week approved a draft amendment which reduces the withholding tax to 15% on one-year government bonds issued before the end of the year.
The preparatory work for the future one-year state bond what the Minister of Finance Vincent Van Peteghem (CD&V) wants to launch to encourage Belgian banks to raise the rates on their savings accounts continue.
On the proposal of the Minister of Finance, the government approved, on July 20, a draft amendment to the draft law on miscellaneous tax provisions.
This draft amendment provides for reduce the withholding tax for individuals from 30% to 15% for one-year State notes issued from July 1 to December 31, 2023. A reduction in property tax which will increase the net return on these government bonds, allowing them to exceed the total interest of the most profitable savings account on the market, the Minister of Finance said in a press release.
A reduction in the withholding tax which will increase the net yield of these State bonds, allowing them to exceed that of the most profitable savings account, says the Minister.
Today, State bonds have a duration of three, five, eight or ten years, with a withholding tax of 30%.
Contrary to European law?
Some tax experts believe that this tax advantage may be contrary to European law, given that it will favor the future one-year State bond to the detriment of comparable investments from other European countries, subject to the ordinary rate of 30%. The Minister of Finance, for his part, considers that it is possible to stay in the nails of European law with reasonable justification.
As a reminder, this one-year State note announced at the beginning of July should be issued on September 4th. Its rate will not be determined until September.
The draft amendment was transmitted for opinion to the Council of State.
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