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
COVID-19 #15 Management Participation Schemes under water
The fact that Governments are gradually defining their exit strategy, does unfortunately not imply that managers are already seeing the exit horizon they were hoping for when they invested in the group. As we may have left the path of a buoyant M&A market, a lot of managers may be in dire straits as their
Belgian Tax on Savings Income (art. 19bis BITC): important clarification from the Minister of Finance for certain AIFs
In answer to a recent parliamentary question, the Minister of Finance has shared his view on the extension of the scope of the Belgian Tax on Savings Income (art. 19bis BITC) to certain AIFs. According to him, if they were acquired before 1st January 2018, units of funds which hold investments that are not sufficiently
Royal Decree of 8 May 2018: Private Pricafs get a boost
Private Pricafs (Pricafs Privées / Private Privaks) are investment vehicles aimed at encouraging investments in risk capital and private equity. Due to certain regulatory features, the creation of Private Pricafs did not really take off since their appearance. To correct this situation, a Royal Decree including several adjustments on the regulatory side but also a
PwC’s dialogue with Private Equity investors reveals growing interest in responsible investment
There is a growing need for General Partners (GPs) to demonstrate responsible investment behaviour and manage their exposure to environmental, social and governance (‘ESG’) risks in their engagement with Limited Partners (LPs). This trend is also based on the belief that addressing ESG factors will protect value by either improving returns or reducing risk. PwC’s
Fund structuring – Impact of BEPS
One of the most important decision-making factors that an asset manager (General Partner – GP) considers in setting up a fund is to ensure that the investment structure is tax neutral for its investor (Limiter Partners – LPs) and provides for the most reliable regulatory framework. The complexity of setting up international investment vehicles pooling
Management exit considerations: capital gains tax treatment
Retaining and incentivising the management of portfolio companies is key for private equity firms. Managers will thus invest alongside with investors and enter into some incentive arrangements. At a future exit, they may then expect to walk away from their investment with a significant return. Belgian managers may invest through a personal holding company or
OECD discussion drafts may impact private equity arrangements
The OECD released draft reports between 14 March 2014, and 19 March 2014, as part of the Base Erosion and Profit Shifting program that call for substantial changes to domestic tax rules, double taxation agreements, and amendments to the OECD Model Tax Convention and Commentary. If the recommendations are widely adopted, they will have a
