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
Key real estate issues in the due diligence process of M&A transactions raised by the New Property Law
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
Tax Bites podcast: EU commission proposal to tackle the debt-equity bias in taxation (DEBRA)
In this week’s podcast, our speakers discuss the content of the proposal and assess which businesses will be impacted. They’ll explain the allowance on equity and interest limitation, linking this to other pending EU proposals. About the speakers: David Ledure, PwC Belgium Partner and leader of the global PwC Financial Transactions network Jean-Philippe Van West,
W&I insurance in M&A transactions
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
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
Santa Claus has brought us a new tax framework for ELTIF investment funds to boost our Belgian economy !
Some good news on the tax and economic fronts. Belgium is getting equipped with the appropriate investment vehicle for its long-term financing needs in private-public infrastructure, SMEs, digitalisation, greening of the economy, social projects, etc. The draft law on various tax provisions currently before the parliament proposes to extend the tax regime of Belgian regulated
Update of the Belgian EBITDA rule provides opportunities for infrastructure and energy sector
Recently the Belgian legislator published a Royal Decree containing some clarifications on the repair law of 20 December 2020 containing changes to the 30% EBITDA rule. As mentioned in our previous Newsflash of 6 January 2021, the Belgian legislator published on 20 December 2020 new legislation in order to address criticism of the European Commission
Debt waivers without a tax cash out (?)
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
