Property tax reform on equipment and tools: what impact on Walloon industry?
Until now, productive investments benefited, under certain conditions, from a permanent exemption. This principle has now been replaced by a much more limited regime: new equipment acquired from 2021 onwards is only exempt for five years.
Concretely, what changes?
- M&E acquired before 2005: remains taxable
- M&E acquired between 2005 and 2020: becomes taxable
- M&E acquired from 2021 onwards: exemption limited to 5 years
In parallel, exemptions linked to the motor force tax are also restricted to a five-year period.
Direct impact on industrial companies
This reform leads to an increase in the tax burden for many companies, particularly in capital-intensive sectors such as surface treatment.
It challenges the stability of the tax framework on which many investments have been made in recent years, with risks for:
- company competitiveness
- investment dynamics
- attractiveness of Wallonia
However, adjustments could still be considered by the Walloon government following feedback from the sector.
Key points for companies
In this new context, it is recommended to:
- Take inventory of machinery and equipment to identify newly taxable assets
- Verify cadastral income and the accuracy of declarations
- Assess the classification of equipment (real estate vs movable property)
- Evaluate possible appeals or optimisation options
This reform represents a major structural change for Walloon industry. Pending possible corrective measures, a proactive approach is essential to manage its impact.