Real estate

Publication of Royal Decree dated 9 November 2016 on Belgian specialised real estate investment funds

PwC is pleased to inform you that the Royal Decree dated 9 November 2016 on Belgian specialised real estate investment funds (better known as “fonds d’investissement immobilier spécialisé” or FIIS / “gespecialiseerd vastgoedbeleggingsfonds” or GVBF) has been published in the Belgian Official Gazette of today, 18 November 2016. As you know, this new investment vehicle […]

Grégory Jurion

PwC is pleased to inform you that the Royal Decree dated 9 November 2016 on Belgian specialised real estate investment funds (better known as “fonds d’investissement immobilier spécialisé” or FIIS / “gespecialiseerd vastgoedbeleggingsfonds” or GVBF) has been published in the Belgian Official Gazette of today, 18 November 2016. As you know, this new investment vehicle […]

Belgian-regulated investment funds: tax-on-tax

On 20 October 2016, the Belgian Constitutional Court rendered a decision confirming the non-discriminatory character of the requirement for Belgian-regulated investment funds (such as SICAV/SICAF and the new FIIS), Regulated Real Estate Companies (RRECs) and Pension Funds organised as OFPs to report corporate income tax expenses/provisions as disallowed expenses in their corporate income tax returns, resulting […]

olivier-hermand-author

On 20 October 2016, the Belgian Constitutional Court rendered a decision confirming the non-discriminatory character of the requirement for Belgian-regulated investment funds (such as SICAV/SICAF and the new FIIS), Regulated Real Estate Companies (RRECs) and Pension Funds organised as OFPs to report corporate income tax expenses/provisions as disallowed expenses in their corporate income tax returns, resulting […]

Royal Decree of 10 July 2016: a new start for alternative investment funds investing in non-listed companies and growth businesses?

On 4 August 2016, the Royal Decree on alternative investment funds investing in non-listed companies and growth businesses was published in the Belgian State Gazette. Its main objective is a new start for investment companies with fixed capital investing in non-listed companies and growth businesses (Public Privaks) (“Publieke Privak”/“Pricaf Publique”). The objective The Royal Decree […]

olivier-hermand-author

On 4 August 2016, the Royal Decree on alternative investment funds investing in non-listed companies and growth businesses was published in the Belgian State Gazette. Its main objective is a new start for investment companies with fixed capital investing in non-listed companies and growth businesses (Public Privaks) (“Publieke Privak”/“Pricaf Publique”). The objective The Royal Decree […]

Summary of what has changed during the summer: newly-adopted tax measures

This summer, the Parliament adopted a range of new tax measures (more details below). Other measures are currently under review at the Chamber or pending before the State Council. More details on the new tax measures are announced on our website: Tax reform in Belgium. Patent income deduction The Act of 3 August 2016 providing […]

philippe-vanclooster-author

This summer, the Parliament adopted a range of new tax measures (more details below). Other measures are currently under review at the Chamber or pending before the State Council. More details on the new tax measures are announced on our website: Tax reform in Belgium. Patent income deduction The Act of 3 August 2016 providing […]

Amendment of AIFM Law in view of the implementation of a new real estate investment vehicle, the FIIS

On 20 July 2016, the Parliament voted on Program Act II modifying amongst others the Belgian Act of 19 April 2014 on alternative investment funds and their managers (AIFM Law). These modifications were necessary to enable the adoption of a new royal decree implementing a new regime for real estate investment funds referred to as “Fonds […]

Grégory Jurion

On 20 July 2016, the Parliament voted on Program Act II modifying amongst others the Belgian Act of 19 April 2014 on alternative investment funds and their managers (AIFM Law). These modifications were necessary to enable the adoption of a new royal decree implementing a new regime for real estate investment funds referred to as “Fonds […]

Brexit: Financial Services Tax outlook

On Thursday 23 June 2016, a historic referendum on the UK’s membership of the EU was held, with the ‘Leave’ result announced the following day. The aftermath now requires careful consideration of the potential short and medium term scenarios the UK government could take in the following months and years and the potential effects each […]

Grégory Jurion

On Thursday 23 June 2016, a historic referendum on the UK’s membership of the EU was held, with the ‘Leave’ result announced the following day. The aftermath now requires careful consideration of the potential short and medium term scenarios the UK government could take in the following months and years and the potential effects each […]

New Belgian Real Estate Investment Fund (FIIS): draft legislation introduced in Parliament

The draft Program Act of 28 June 2016 contains several tax rules applicable to the existing Belgian Regulated Real Estate Company (RREC*) and the new Belgian Real Estate Investment Fund (FIIS**) and creates the legal basis for the Belgian government to issue decrees implementing the FIIS regime. Final legislation is expected to be published during […]

Grégory Jurion

The draft Program Act of 28 June 2016 contains several tax rules applicable to the existing Belgian Regulated Real Estate Company (RREC*) and the new Belgian Real Estate Investment Fund (FIIS**) and creates the legal basis for the Belgian government to issue decrees implementing the FIIS regime. Final legislation is expected to be published during […]

Anti-Tax Avoidance Directive: impacts on the real estate industry

EU countries reach political agreement on Anti-Tax Avoidance Directive: impacts on the real estate industry The EU-28 Finance Ministers reached political agreement on 21 June 2016 on the Council Directive laying down rules against tax avoidance practices that directly affect the functioning of the internal market (also known as ATAD). Ministers decided not to include […]

Grégory Jurion

EU countries reach political agreement on Anti-Tax Avoidance Directive: impacts on the real estate industry The EU-28 Finance Ministers reached political agreement on 21 June 2016 on the Council Directive laying down rules against tax avoidance practices that directly affect the functioning of the internal market (also known as ATAD). Ministers decided not to include […]

Former prohibition of exemption of withholding tax on dividends distributed by Belgian Regulated Real Estate Companies annulled by Constitutional Court

On 11 May 2016, the Belgian Constitutional Court annulled the former prohibition of exemption of withholding tax on dividends distributed by Belgian Regulated Real Estate Companies (RRECs) on the ground that it was discriminatory compared to dividends paid by Belgian Real Estate Investment Funds (REIFs). The Act of 12 May 2014, applicable as from 16 […]

olivier-hermand-author

On 11 May 2016, the Belgian Constitutional Court annulled the former prohibition of exemption of withholding tax on dividends distributed by Belgian Regulated Real Estate Companies (RRECs) on the ground that it was discriminatory compared to dividends paid by Belgian Real Estate Investment Funds (REIFs). The Act of 12 May 2014, applicable as from 16 […]

European Commission proposes an EU Directive on public Country-by-Country reporting

As already referred to in our newsflash of 13 April 2016, the European Commission has developed a proposal for a directive which, if approved by the European Parliament and Council of Ministers, will require public country-by-country reporting (CbCR) of tax and other financial data by large companies in the European Union (EU). The proposed directive will amend the existing […]

Xavier Van Vlem

As already referred to in our newsflash of 13 April 2016, the European Commission has developed a proposal for a directive which, if approved by the European Parliament and Council of Ministers, will require public country-by-country reporting (CbCR) of tax and other financial data by large companies in the European Union (EU). The proposed directive will amend the existing […]

Belgium – budgetary control 2016: real estate measures

On 9 April 2016, the federal government reached an agreement on additional budgetary and recovery measures following the 2016 budgetary control exercise. It has been confirmed that measures will be taken to make the Belgian real estate market more attractive for foreign investors (as further explained in the parliamentary procedures leading to the Tax Shift Act […]

Grégory Jurion

On 9 April 2016, the federal government reached an agreement on additional budgetary and recovery measures following the 2016 budgetary control exercise. It has been confirmed that measures will be taken to make the Belgian real estate market more attractive for foreign investors (as further explained in the parliamentary procedures leading to the Tax Shift Act […]

European Commission proposes Anti-Tax Avoidance Package

On 28 January 2016, the EU Commission presented its Anti-Tax Avoidance Package.  The continuing political will to address tax avoidance may result in the 100% consensus required by EU Member States to effect the proposed tax changes. The EU-28 governments will have to decide if they are willing to go further than the G20/OECD BEPS […]

philippe-vanclooster-author

On 28 January 2016, the EU Commission presented its Anti-Tax Avoidance Package.  The continuing political will to address tax avoidance may result in the 100% consensus required by EU Member States to effect the proposed tax changes. The EU-28 governments will have to decide if they are willing to go further than the G20/OECD BEPS […]

Belgian Minister of Finance sheds light on implementation of BEPS related measures

The Belgian Minister of Finance has just shared new insights on how Belgium will be addressing the outcome of the OECD/G20 project in relation to Base Erosion and Profit Shifting (“BEPS”). He opted to do so via the “Plan to combat tax fraud”. The title of his policy note is misleading since the document covers, […]

patrick-boone-author

The Belgian Minister of Finance has just shared new insights on how Belgium will be addressing the outcome of the OECD/G20 project in relation to Base Erosion and Profit Shifting (“BEPS”). He opted to do so via the “Plan to combat tax fraud”. The title of his policy note is misleading since the document covers, […]

Tax reform announced in the Flemish Region

Following the recent tax reform announcements in the Brussels Capital Region and Walloon Region, the Flemish Government has recently also announced a reform on the ‘tax reduction for mortgage loans concluded for the sole and own dwelling’. The changes envisaged will apply to mortgage loans concluded as of 2016. The condition of ‘sole’ dwelling will be abolished. Consequently, […]

nicolas-de-limbourg-author

Following the recent tax reform announcements in the Brussels Capital Region and Walloon Region, the Flemish Government has recently also announced a reform on the ‘tax reduction for mortgage loans concluded for the sole and own dwelling’. The changes envisaged will apply to mortgage loans concluded as of 2016. The condition of ‘sole’ dwelling will be abolished. Consequently, […]

Tax reform announced in the Walloon Region

Recently, the Walloon Government announced a tax reform with respect to the “tax reduction for mortgage loans for the sole and own dwelling”. In this respect, a so-called system of “chèque habitat” would be introduced. The tax reduction would be limited in time (for maximum 20 years) and depend on the net taxable income of […]

nicolas-de-limbourg-author

Recently, the Walloon Government announced a tax reform with respect to the “tax reduction for mortgage loans for the sole and own dwelling”. In this respect, a so-called system of “chèque habitat” would be introduced. The tax reduction would be limited in time (for maximum 20 years) and depend on the net taxable income of […]

Tax reform announced in the Brussels Region

The Brussels Capital Region has recently presented its budget for 2016. Amongst others, a tax reform was announced, which will be implemented partially in 2016 and partially in 2017. In 2016, the lump-sum regional tax of EUR 89 and the additional levy of 1% on the federal personal income taxes will be abolished. Real estate […]

nicolas-de-limbourg-author

The Brussels Capital Region has recently presented its budget for 2016. Amongst others, a tax reform was announced, which will be implemented partially in 2016 and partially in 2017. In 2016, the lump-sum regional tax of EUR 89 and the additional levy of 1% on the federal personal income taxes will be abolished. Real estate […]

What does today’s Belgian budget and tax-shift agreement mean?

What does today’s Belgian budget and tax-shift agreement mean? Today, the Belgian government announced various tax measures of particular interest for the real estate and financial sectors. The new measures include a new regime for institutional real estate funds, an increase of the normal withholding tax rate and taxation of short-term capital gains on listed […]

00006974

What does today’s Belgian budget and tax-shift agreement mean? Today, the Belgian government announced various tax measures of particular interest for the real estate and financial sectors. The new measures include a new regime for institutional real estate funds, an increase of the normal withholding tax rate and taxation of short-term capital gains on listed […]

Existing split sale structures: ruling commission confirms possibility of re-constitution of full property

The ruling commission held a meeting a few days ago with the central tax administration to discuss the unwinding of existing split sale structures and to agree on a position regarding the potential reconstitution of full property without triggering 10% / 12,5% registration duties on the value of the full property. The ruling commission now […]

00006974

The ruling commission held a meeting a few days ago with the central tax administration to discuss the unwinding of existing split sale structures and to agree on a position regarding the potential reconstitution of full property without triggering 10% / 12,5% registration duties on the value of the full property. The ruling commission now […]

Court of Appeal: VAT reverse charge – Penalties

A recent court case of the Brussels Court of Appeal again shows how expensive it can be for businesses not to apply the reverse charge and thereby not self-account for the VAT due on incoming invoices. Indeed, the Court ruled that proportional penalties are applicable even in the case where the VAT was fully deductible […]

Wouter-Villette-2

A recent court case of the Brussels Court of Appeal again shows how expensive it can be for businesses not to apply the reverse charge and thereby not self-account for the VAT due on incoming invoices. Indeed, the Court ruled that proportional penalties are applicable even in the case where the VAT was fully deductible […]

Non-application of NID to foreign permanent establishment and real estate

The Belgian tax authorities have recently issued a practice note with regard to the Belgian notional interest deduction (‘NID’) and the possibility for the taxpayer to file a tax claim or request an ex officio tax relief. Companies subject to Belgian (non-resident) corporate income tax may deduct a notional interest reflecting the economic cost of […]

philippe-vanclooster-author

The Belgian tax authorities have recently issued a practice note with regard to the Belgian notional interest deduction (‘NID’) and the possibility for the taxpayer to file a tax claim or request an ex officio tax relief. Companies subject to Belgian (non-resident) corporate income tax may deduct a notional interest reflecting the economic cost of […]

Good faith transitional relief under FATCA provided by US Treasury and IRS

On May 2, 2014, the US Treasury Department (Treasury) and Internal Revenue Service (IRS) announced in Notice 2014-33 (the Notice) that calendar years 2014 and 2015 will be regarded as a transition period for IRS enforcement and administration purposes with respect to the implementation of the Foreign Account Tax Compliance Act (FATCA or Chapter 4). […]

olivier-hermand-author

On May 2, 2014, the US Treasury Department (Treasury) and Internal Revenue Service (IRS) announced in Notice 2014-33 (the Notice) that calendar years 2014 and 2015 will be regarded as a transition period for IRS enforcement and administration purposes with respect to the implementation of the Foreign Account Tax Compliance Act (FATCA or Chapter 4). […]

New tax on parking spaces in the Brussels Region

A new (environmental) tax on parking spaces will be effective as from 1 January 2015 (in accordance with the order of 2 May 2013 of the Brussels Region that entered into force on 5 February 2014). The tax is mainly applicable to owners of office buildings. The order limits the amount of parking spaces according […]

olivier-hermand-author

A new (environmental) tax on parking spaces will be effective as from 1 January 2015 (in accordance with the order of 2 May 2013 of the Brussels Region that entered into force on 5 February 2014). The tax is mainly applicable to owners of office buildings. The order limits the amount of parking spaces according […]

Creation of a Belgian ‘Regulated Real Estate Company’: an optional regime for Belgian Real Estate Funds.

Following the EU Alternative Investment Fund Managers Directive (‘AIFMD’) and its Belgian implementation (below ‘AIFMD Regulations’), AIF Managers carrying out activities within the scope of AIFMD will have to file an application for authorisation before 22 July 2014 and will have to comply with the conditions imposed. As things stand today, Belgian Real Estate Funds […]

olivier-hermand-author

Following the EU Alternative Investment Fund Managers Directive (‘AIFMD’) and its Belgian implementation (below ‘AIFMD Regulations’), AIF Managers carrying out activities within the scope of AIFMD will have to file an application for authorisation before 22 July 2014 and will have to comply with the conditions imposed. As things stand today, Belgian Real Estate Funds […]

Announced increase of registration duties on long lease rights and building rights

On 29 March 2013, the government members have reached an agreement in the framework of the Budgetary Control 2013. Increase of registration duties One of the measures impacting the real estate sector is the increase of the registration duties from 0.2% to 2% on the granting of long lease rights and buildings rights (0.5% for […]

olivier-hermand-author

On 29 March 2013, the government members have reached an agreement in the framework of the Budgetary Control 2013. Increase of registration duties One of the measures impacting the real estate sector is the increase of the registration duties from 0.2% to 2% on the granting of long lease rights and buildings rights (0.5% for […]

Tax ruling on real estate at ports and airports

On 10 September 2012, the Belgian Ruling Commission published an interesting tax ruling on real estate situated at airports. It is the first official publication on the subject-matter. The ruling concerns both airport operators, real estate investors and end-users (handlers, forwarders, logistics, etc. …) at airports. In essence the ruling confirms that real estate (old […]

olivier-hermand-author

On 10 September 2012, the Belgian Ruling Commission published an interesting tax ruling on real estate situated at airports. It is the first official publication on the subject-matter. The ruling concerns both airport operators, real estate investors and end-users (handlers, forwarders, logistics, etc. …) at airports. In essence the ruling confirms that real estate (old […]