Government reaches agreement on “Summer Accord”

The Federal Inner Cabinet has reach an agreement about the so-called “Summer Accord”. There had been some disagreement among the coalition parties concerning a number of important points contained within the accord such as tax-free moonlighting and the securities tax.

VRT News’ political editor Johny Vansevenant. Explains "The agreement is about the securities tax on shares and the proposal to allow people to earn 500 euro/month tax-free from moonlighting and the reduction in corporation tax.

These three measures will now be put before parliament. A few modifications have been made. For example with regard to tax-free moonlighting those wanting to work in a care-home will have to have the correct qualifications in order to be allowed to earn up to 500 euro/month tax-free there”.

An anti-abuse clause has been built into the new securities tax.
"Those that take shares from their securities account in order to ensure that it does exceed the 500,000 euro tax threshold will still see his or her shares taxed”, Johny Vansevenant added.

"In fact very little is changing. It will now all be put before parliament. Tax-free moonlighting won’t come into effect until 20 February. This is because the app won’t be ready until then. I think that we can say that peace has returned to the Michel government”, Johny Vansevenant concludes.

The Inner Cabinet has also reached an agreement on the so-called "car for cash" measures. Under the car for cash measures employees can exchange their company car for cash. The car for cash measures will be discussed by the social partners in January.

All parties satisfied

The Federal Deputy Prime Ministers Kris Peeters (Flemish Christian democrat) and Alexander De Croo (Flemish liberal) both say that they are satisfied with the outcome of the negotiations.

Mr Peeters told VRT News that "It is good that the government has now approved the Summer Accord once and for all. It is now up to parliament to approve the bills as quickly as possible so that the measures contained in the Summer Accord can be implemented as quickly as possible”.

"We have taken seriously the advice given by the Council of State and the National Work Council. We have taken our time and have no struck an agreement that takes maximum heed of the advice”, Mr Peeters said.

Meanwhile, Mr De Croo told VRT News that “It is good that we can implement the Summer Accord as decided on last summer. Reducing corporation tax is important for our small and medium-sized businesses so they can create jobs”.