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
VAT exemption for financial intermediation: broader than you think
Versãofast (GC, 26 Nov 2025, T-657/24): a functional test. The recent Versãofast judgment (26 November 2025, General Court) clarifies the scope of the VAT exemption for credit intermediation. While the Court recalls that VAT exemptions must be interpreted strictly, it adopts a functional approach to “intermediation”, focusing on what the service enables rather than on
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
Simplified side stream mergers – new law clears hurdles for ‘real’ tax neutrality
On 16 June 2023, the ‘simplified side stream merger’ (vereenvoudigde zusterfusie / fusion simplifiée entre soeurs) was introduced in the Code of Companies and Associations and in the Income Tax Code. However, even in case all conditions were fulfilled, the transaction could not entirely take place tax neutrally due to ‘imperfections’ in the corporate income
The first tax measures of the new government adopted
On 17 July 2025, the Chamber adopted a first set of tax measures. The other measures included in the Easter agreement are part of the draft law containing various provisions, which is currently under review at the Chamber. The main measures adopted are as follows: From a corporate tax and and employer perspective: Participation exemption
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
Tax Bites podcast – Belgium’s new government agreement: First insights
Welcome to our Tax Bites podcast series. In this episode, we bring together several colleagues who have closely monitored the recent Belgian government negotiations. Join us as we delve into the newly agreed measures at the Belgian government level. About the speakers Bart Van den Bussche Willem Vandromme Véronqiue De Brabanter Pieter Déré (Host) Missed
