The fiscal landscape for Belgium’s financial sector has changed a lot in recent years. The speculation and bank tax, the increases in withholding taxes and collective investment institution tax, the limitations on risk capital deduction for credit institutions and insurance companies, etc. have all redrawn the fiscal landscape. Financial legislation has significantly changed and expanded too, for collective investment institutions and bank resolution mechanisms for example.
All these legislative changes make the tax situation for financial institutions, which moreover comprises European, international and constitutional law, extremely complex.
Tiberghien’s Banking and Finance team follows all fiscal legislation from up close. Tiberghien assists many financial institutions with the implementation of (new) rules and regulations. Our team also has extensive experience in procedures to do with objections against collective investment institution taxes, withholding tax, stock exchange taxes and notional interest deduction by credit institutions and insurance companies.
Our close collaboration with ALTIUS’s Banking and Finance team ensures Tiberghien can help clients with tax and company law matters.
What can we do for you?
Credit institutions
- we assess the tax situation of financial products, such as savings accounts, pension plans, hybrid securities, structured notes, etc.;
- we look over and formulate prospectuses and product fiches;
- we lend advice regarding Belgian corporation tax for credit institutions, e.g. concerning notional interest deduction limitations;
- we take care of our clients’ obligations to do with the international exchange of information in compliance with FATCA and the Mutual Assistance Directive;
- we lend advice with regard to the relationship with the prevention policy and special mechanisms.
Insurance companies
- we lend advice on Belgian corporation tax for insurance companies, e.g. concerning potential exemptions of technical facilities, class 23 investments, etc.;
- we look over and formulate prospectuses and product fiches;
- we assess the tax situation of insurance products within the context of pension plans, inheritance planning involving life insurance contracts, applicable withholding taxes, etc.;
- we assist with annual taxes on insurance transactions.
Collective investment institutions and pension funds
- collective investment institutions and pension funds are only subject to a limited level of corporation tax in Belgium; Tiberghien lends advice about the correct implementation of limited tax bases, especially concerning the deduction of applicable withholding tax;
- we look over and formulate prospectuses and product fiches;
- we take care of collective investment institution management and the VAT on management fees;
- Tiberghien has assisted several international investment companies with the various aspects of their move to Belgium;
- the tax situation of assets and stock exchange tax legislation are extremely complex for collective investment institutions; Tiberghien frequently advises clients about the various aspects of dividends, share purchases and fund liquidation;
- Tiberghien has also considerable experience with the application of exemptions to and renunciation as well as reclaim of applicable withholding tax.
Financial intermediaries
- Many financial intermediaries (abroad) wonder about stock exchange taxes, especially within an international context. Tiberghien has assisted several intermediaries to determine whether they do or do not owe Belgian tax on their stock exchange transactions.
