Newsflash: property tax on machinery and equipment
Before the end of 2016, Brussels Capital, Flanders and Wallonia all made amendments relative to their property tax ('précompte immobilier'; 'onroerende voorheffing') on machinery and equipment.
On December 12th 2016, the government issued an order ('Ordonnance'; 'Ordonnantie') modifying the application of article 257 of the CIR 92 within the Brussels Capital region:
- Machinery and equipment is no longer taxable as part of the property tax in Brussels Capital.
- The order allowing firms to either be exempt of, or partially deduct their property tax on vacant buildings or unproductive machinery and equipment has been revoked.
As part of the implementation of the Flemish budget for 2017, a Decree ('Décret'; 'Decreet') issued on December 23rd 2016 modifies article 18.104.22.168.1, 9° of the Flemish Tax Code:
- The tax exemption on new investments in machinery and equipment is extended to the tax assessment year 2020.
- All new investments in machinery and equipment done between 01/01/2017 and 31/12/2019 are exempt from property tax.
On December 12th 2014, a decree was issued to announce the eventual reinstating of taxes on all investments in machinery and equipment in Wallonia. Note that firms had been exempt from taxes on new investments since 2006 as part of the Plan Marshall:
- Another Decree issued on the 21/12/2016 has since repealed its 2014, predecessor, keeping new investments in machinery and equipment exempt.
- Despite this exemption, firms in Wallonia are still recommended to declare annually any new investments in machinery and equipment acquired after 2006.
We will continue to monitor evolutions regarding property tax on machinery and equipment in all three regions and keep you informed of any future developments.