News articles written by David Ledure

Arm’s length character of interest rates on intercompany loans

26 January 2024

In recent years, the Belgian Tax Authorities (BTA) have intensified their focus on the (intercompany) financing arrangements of MNE groups.  Some recent Belgian case laws offer valuable insights into the approach that the BTA and the Courts adopt when assessing the arm’s length character of intercompany financing conditions. Stay informed and adapt strategically! Judgment of

Implication of rising interest rates on the intercompany financing arrangements

6 December 2023

The current upward trend in interest rates within the financial markets and the associated rise in borrowing costs can have a significant impact on the (intercompany) financing structures across MNE groups. From an arm’s length perspective it is essential that the terms and conditions of the intercompany transactions reflect third party dealings and market circumstances 

New circular letter published on 30% EBITDA rule

7 February 2023

On 12 January 2023 a new circular letter (2023/C/8) was published regarding the 30% EBITDA regulation (Dutch/French version).  Over the past few years, the Belgian tax authorities have periodically published guidance on the interpretation of the 30% EBITDA rule. The new circular letter is intended to summarize the guidance that is currently available to provide

Tax Bites podcast: EU commission proposal to tackle the debt-equity bias in taxation (DEBRA)

12 May 2022

In this week’s podcast, our speakers discuss the content of the proposal and assess which businesses will be impacted. They’ll explain the allowance on equity and interest limitation, linking this to other pending EU proposals. About the speakers: David Ledure, PwC Belgium Partner and leader of the global PwC Financial Transactions network Jean-Philippe Van West,

New legislation impacting 30% EBITDA rule

6 January 2021

In order to address criticism of the European Commission on inter alia the Belgian implementation of the “EBITDA interest limitation rule”, the Belgian legislator has published new legislation to address those. This might impact the financing of real estate, entities that perform factoring activities or entities active in “long-term public infrastructure projects”. The scope of

Circular containing technical clarifications regarding the 30% EBITDA rule

14 July 2020

On 10 July 2020 a new Circular letter was published regarding the 30% EBITDA regulation (Dutch/French version).The Circular is intended to provide some additional clarifications on remaining ambiguities on the 30% EBITDA regulation, as contained in Article 198/1 BITC 92 and Article 73 RD/BITC. These clarifications are highly technical in nature and underscore again that

EBITDA Interest Limitation Rule: New Circular Letter avoids unintended consequences when obtaining payment holidays

7 May 2020

On 5 May 2020, the Belgian tax administration published its Circular Letter 2020/C/62 on specific payment holidays negotiated in the context of the COVID-19 crisis. More in particular, this circular accepts that certain loans will not lose their “grandfathered” status in case specific modifications are negotiated to loan agreements so to bridge temporary payment difficulties.