Conflicting Belgian case law on transfer of excess interest deduction capacity – EU court to decide
The application of the 30% EBITDA interest limitation continues to give rise to significant uncertainty in Belgian acquisition structures. This uncertainty has now been elevated to EU level, as the court of first instance of Walloon Brabant has decided to refer a prejudicial question to the Court of Justice of the European Union. Under the
Belgian Court confirms: you can transfer more ‘interest deduction capacity’ than you have
In Belgian acquisition structures, the application of the 30% EBITDA interest limitation creates significant uncertainty. Although the law permits the transfer of excess interest deduction capacity within Belgian groups even in excess of the transferring entity’s own capacity, the tax authorities have adopted a restrictive interpretation which is particularly negative for Finco’s. Recent case law
Pledged shares and the participation exemption — Antwerp Court confirms the common‑sense approach applied by the ruling commission
Based on a strict reading of the law, pledged shares are not taken into account to determine if a shareholder has sufficient participation to benefit from dividends received deduction and dividend withholding tax exemption. The administrative tolerance in this respect has recently been confirmed by the Court of Appeal of Antwerp. When a company takes out a loan to finance an acquisition, banks often require that (at least part of) the acquired shares are pledged as a collateral. Under Belgian tax law, pledged shares are not counted for
New draft bill with respect to the taxation of capital gains realised upon the disposal of financial assets
The 10% capital gain tax As of January 1, 2026, as per the new (draft) article 90, 9° c) of the ITC 92, capital gains realised upon the disposal of financial assets -beyond the scope of a professional activity but within the scope of the normal management of the private estate – will be taxed
Future capital gains tax on the sale of shares of companies: complexity around the valuation of the company
As widely known by now, the budget note from De Wever I includes a capital gains tax on shares. Although not many details are known yet, the note stipulates that there will be a general solidarity contribution on the future realized capital gains of financial assets, accrued from the moment of the introduction of the
HR measures in the “Super nota of Bart De Wever” – What was on the table
For years, there has been a pressing need to reform Belgium’s stringent labour legislation. The so-called “Super Nota” of Bart De Wever contains several key items that could drive considerable improvements in this field. More specifically, the proposals aim to make the labour market more flexible while guaranteeing social protection and increasing the purchasing power
Important changes in Flemish registration duties and inheritance tax coming soon!
Significant adjustments to Flemish registration duties and inheritance tax are on the horizon, as outlined in the new Flemish coalition agreement. These changes are set to impact estate planning practices. Below is an overview of what is known so far. 1. Reduction in registration duties The most concrete measure concerns the reduction of registration duties
Tax measures in the “Super nota of Bart De Wever” – What was on the table for corporations?
The so-called “Super nota” of Bart De Wever’s contained a variety of proposed tax measures that would bring significant changes to the existing tax system. While the Super nota seems currently “in the fridge”, the budgetary situation of the country makes it likely that one or more of the measures in the Super nota will
