News articles written by Nancy De Beule

COVID-19 #2 Debt-equity swap to restore your equity position

19 March 2020

In the context of the economic downturn caused by the corona crisis, companies may seek for (different) ways to restore their equity position. Previously, we explored intragroup debt waivers as a remedy to alleviate financial distress (click here). Another approach that may be considered is the contribution in kind of existing intercompany (or third party)

COVID-19 #1 Debt waiver: beware for a tax cash out

16 March 2020

Next to having a huge impact on our personal and family lives, the outbreak and spreading of the coronavirus (COVID-19) is likely to result in a slowdown of economies across the globe. In the coming weeks, we will keep you informed on various tax (re)structuring related topics that may help you in combating the virus

Articles 442bis BITC and 93undeciesB VAT-code abolished and replaced

14 January 2020

On 30 April 2019, a law of 13 April 2019 was published in the Belgian Official Gazette, introducing a new “Code of the amicable and enforced collection of tax and non-tax debts”. This new legislation entered into force on 1 January 2020 (Article 139 of the law).The idea behind the new code is the harmonization

Tax neutral merger possible in Belgium in case of negative accounting net equity

30 September 2019

When a merger is performed between two Belgian legal entities whereby the acquired company has a negative accounting net equity, the question pops-up whether such merger is possible and feasible to perform tax-free. Given that Belgian law does not explicitly require a positive net equity, it can be assumed a contrario that a merger should

Limitation of tax losses in case of partial demerger

18 June 2019

A partial demerger is a transaction whereby part of the assets and liabilities of the partially demerged company are transferred to another (acquiring) company, which (in principle) issues shares to the parent company of the partially demerged company. In case of a tax-neutral partial demerger, the carried forward tax losses of the partially demerged company

Asymmetric debt-equity swap: Court of Appeal rules in favor of tax authorities

9 April 2019

On 26 February 2019, the Court of Appeal of Ghent ruled on the income tax treatment of an asymmetric debt-equity swap. The Court decided that both the contributing company and receiving company have to apply the same value. In the case at hand, a company A had a receivable of 1000 on its subsidiary B,

Positive ruling on deductibility of interest costs on loans contracted in order to finance capital reduction in case of an ‘over-capitalised’ company

12 March 2019

The Belgian ruling office recently published a positive decision deciding that interest costs related to the intercompany loan are deductible for tax purposes since the costs are borne by the company with the purpose to preserve or generate taxable income. In the case at hand, a factoring company with ‘an excessive amount of equity’ is