COVID-19 #13 Liquidation of negative net equity companies
In many groups, the current year financial performance will not meet the budget set at the start of the financial year. The current crisis is immeasurably affecting the economic landscape. When companies are no longer capable of funding their own operations, shareholders may be called to provide financial support. In circumstances like these, it is
Positive ruling on deductibility of interest costs on loans contracted in order to finance capital reduction in case of an ‘over-capitalised’ company
The Belgian ruling office recently published a positive decision deciding that interest costs related to the intercompany loan are deductible for tax purposes since the costs are borne by the company with the purpose to preserve or generate taxable income. In the case at hand, a factoring company with ‘an excessive amount of equity’ is
Tax Ruling Service specifies “disproportional grant” of warrants or OTCs in two particular cases
In the past, the Tax Ruling Service has taken several decisions whereby it was not excluded that the grant of warrants/options on Beveks/Sicavs or the grant of quoted options could be considered as an improper use if such grant would be considered ‘disproportionate’ in comparison with the conventional attributed remuneration. The Tax Ruling Service never
Ruling: guidance on how amendments to an existing ruling are treated
In its last newsletter published on 13 July, the Belgian Rulings Office has given an interesting clarification on how requests to obtain an amendment to an advance decision (so-called ‘Avenants’) will be treated. This often refers to situations where after the decision was granted certain critical facts change and that comfort is sought on the
The Rulings Commission publishes ruling request templates
The Belgian Rulings Commission has recently published ruling request templates. These templates have been prepared in an effort (i) to facilitate access to tax rulings and (ii) for transparency purposes. Ruling request templates have been made available in Dutch and in French for the following relevant transactions: Mergers, Partial demergers, Contribution of a line of
Creation of certainty on VAT treatment of complex cross border transactions – Cross Border Rulings Project extended until 2018 by EU Commission
The VAT Cross Border Rulings Pilot Project has been set up for taxable persons to obtain advance rulings on the VAT treatment of complex cross border transactions. Cross border rulings (CBRs) create certainty, thus mitigating the risk of double taxation and related disputes. The EU pilot project started in 2013 and now involves 15 Member
