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
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
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
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
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).
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
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
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
