News articles written by Nancy De Beule

Limitation of excess DRD after merger is in line with Parent-Subsidiary Directive

2 November 2022

On 20 October 2022, the European Court of Justice (ECJ) rendered its judgment in the “Allianz Benelux” case relating to the limitation of excess dividends-received deduction (DRD) of Belgian companies that are involved in a tax-neutral merger.  A dividend received by a Belgian company is in principle taxable income. But if certain conditions are met

The Luxembourg Reserved Alternative Investment Fund (RAIF) – Updated

8 June 2022

Luxembourg RAIFs are increasingly used in order to provide debt funding for acquisitions. Until recently it was uncertain how interest paid by a Belgian company to a RAIF is to be treated from a Belgian withholding tax perspective. Two recent decisions of the Belgian Supreme Court provide more clarity. The RAIF Regime  In 2016, Luxembourg

Key real estate issues in the due diligence process of M&A transactions raised by the New Property Law

3 June 2022

Following the New Property Law of 4 February 2020 (which entered into force on 1st September 2021), important changes were introduced regarding amongst others long term lease rights and building rights. These changes can also have an impact on M&A transactions, for certain topics more flexibility is created whereas for other topics the New Property Law is more strict. Learn more

W&I insurance in M&A transactions

20 April 2022

In recent years we have seen an increase in W&I insurance and it is expected that this trend will continue. This does not come as a surprise as W&I insurance can help establishing deal certainty and peace of mind post-closing. We frequently receive questions on what W&I insurance is and how it works in practice.

Mergers and (partial) demergers in case of negative net equity

13 April 2022

Mergers and (partial) demergers in case of negative net equity   Although nothing in Belgian company law or tax legislation explicitly indicates that companies with a negative net equity are not allowed to participate in a merger (or demerger or partial demerger), legal doctrine is divided as to whether such a transaction is possible if

Debt waivers without a tax cash out (?)

5 February 2021

Last week, Belgian Minister of Finance Van Peteghem announced to extend the scope of the existing Belgian tax exemption for debt waivers to non-judicial debt reorganizations. This is very relevant for debt restructurings involving Belgian debtors, especially as the 2018 Belgian tax reform introduced a cap on the amount of certain tax attributes (such as

Brexit does not only impact fishing territories but also M&A transactions

7 January 2021

During the holidays and after lengthy negotiations, the EU and the UK agreed on a Brexit – deal.   As foreseen, on 1 January 2021, the transition period during which the UK was still considered a Member State of the EU and European Economic Area (EEA) has ended. Among a variety of topics, this is