VAT deduction based on direct attribution of costs: new rules as from 2023
In Belgium, the pro rata based on turnover is the general VAT deduction method for mixed VAT payers. Beside the prorata, the direct attribution method can also be applied. This method is widely used in the financial, real estate, not–for-profit and public sector. In practice, most corporate groups also use this method for their activities
ELTIF Regulation amendments: A provisional agreement has been reached
On 19 October 2022, a little less than a year after the Commission presented its original proposal to amend the European Long-Term Investment Funds (“ELTIF”) Regulation (“Regulation”) and following a month of negotiations, the European Parliament and the Council, under the Czech presidency, have reached a provisional agreement on the amendments of the Regulation to
Tax Bites Podcast: Looking ahead at tax policy in uncertain times
Patrick Boone and Matthias Reyntjens look ahead to what the next months will bring in terms of economic developments, and what this means for tax policy. They consider how national governments will respond, how businesses can prepare, and the likely impact on taxation. This podcast is the first of a series of podcasts dealing with
Belgium fine-tunes the tax framework for ELTIFs
On 15 July 2022, the tax framework for ELTIFs has been completed with the necessary exemptions of Belgian withholding tax (WHT). As a recall, the law of 21 January 2022 on various tax provisions provides a tax framework for European long-term investment funds according to three principles: Corporate tax neutrality of the investment company Avoidance
Tax Bites Podcast: One year after the publication of the Fit For 55 Package – Where do we stand?
One year after the publication of the Fit For 55 Package – Where do we stand? On 14 July 2021 the European Commission published its ambitious Fit For 55 Package. Tune in if you want to know where we stand today regarding the tax measures included in the Fit For 55 Package and how the
EU Green Deal update – Agreement by the European Parliament on the key Fit for 55 proposals and common position on the Corporate Sustainability Reporting Directive
On Wednesday, June 22, the European Parliament adopted some key elements of the Fit for 55 Package, namely the EU Emission Trading System (ETS), the Carbon Border Adjustment Mechanism (CBAM) and the Social Climate Fund. One day before, the European Parliament and the Council also reached a provisional agreement on the Corporate Sustainability Reporting Directive.
Modification to ELTIF Regulation: Trilogues are ready to start
On 25 May 2022, the Council reviewed and validated the Commission’s proposal amending Regulation (EU) 2015/760 on European long-term investment funds (ELTIF), following which the Economic and Monetary Committee of the EU parliament adopted its own position on the proposal on 20 June 2022. See our previous Newsflash for more information and background. Priorities In
The Luxembourg Reserved Alternative Investment Fund (RAIF) – Updated
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
