The European Commission has found that Belgium’s proposed turnover tax regime (called the “Diamond Regime”) for the wholesale rough and polished diamond trading sector, is in line with European Union State aid rules, GemKonnect reports.
Under the new “Diamond Regime”, a trading firm’s gross profit margin is fixed at 2.1% of its turnover. According to the EC statement, the percentage was fixed at a level such that at least 75% of the wholesale diamond traders would have paid a higher amount of taxes under the new “Diamond Regime” than they did over the period 2012-2014 under the ordinary rules of taxation of income.
To ensure that diamond traders pay their fair share of taxes, the new regime introduces a minimum tax base set at 0.55%. Currently, diamond wholesale traders in Belgium are subject to the general income tax rules.
