Tax Freedom Day 2013

Comprehensive reforms vs. a low flat corporate income tax rate

For the eighth year in a row, PwC in cooperation with the Catholic University of Leuven have calculated Tax Freedom Day® – the day when the average inhabitant of the country stops working to pay tax and starts working for themselves. This year Belgium's Tax Freedom Day® falls just as last year on 14 June.

Do we get enough back for our taxes?

In this year’s report Wim Moesen, Professor Emeritus at the Faculty of Economics and Business at the KU Leuven, has compared Belgium to Sweden that has roughly the same budgetary envelope but whose government effectiveness is clearly higher.

Frank Dierckx, Managing Partner of Tax Consultants summarises that an optimal low flat corporate income tax rate would be around 3% to 4% allowing for simplification of various facets of the system, thus also widening the tax base and the scope of various earn-backs.

Read the full analysis and recommendations from Professor Moesen and Frank Dierckx, Managing Partner PwC Tax Consultants in the Tax Freedom Day 2013® Report.

What is Tax Freedom Day®?

Tax Freedom Day® is the symbolic date on which the average taxpayer stops working for the state treasury and begins earning for himself. It relates to the total taxes paid by the average citizen as a percentage of their total income, and is calculated by dividing the total tax revenue of general government by the nation's gross domestic product (GDP).The Belgian result of 44,9% for 2013 is converted into days of the year starting with 1 January. Put differently, Tax Freedom Day is a measure of the overall tax burden borne by the citizens of a specific country in a particular year.