Belgium: Tax on securities accounts

Belgium: Tax on securities accounts

The Parliament yesterday adopted in plenary session a tax on securities accounts.

1000

Related content

The Belgian federal government in November 2020 reached an agreement on a draft law to introduce a new annual tax on securities accounts (“solidarity contribution”). Read TaxNewsFlash

Only one technical amendment was made during the parliamentary consideration of the draft law—a change to clarify that securities accounts that are part of the property of a Belgian establishment (i.e., a non-resident for income tax purposes) will also be within the scope of the tax, regardless whether the account is held with a Belgian or foreign financial intermediary. Other proposed amendments were not adopted.
 

Effective date

The legislation will be effective as of the first day after being published in the official gazette. An anti-abuse provision, however, has a retroactive effective date of 30 October 2020. Any transactions as of 30 October 2020 will be deemed abusive (unless evidence is presented to the contrary) and will not be taken into account in the application of the tax regime (i.e., taxation to be applied as if the transaction did not take place).
 

Tax on securities accounts

  • The tax is to apply to securities accounts held by resident and non-resident individuals, companies, and legal entities (including legal constructions subject to the “Cayman tax”).
  • Exemptions will be available for certain financial institutions that hold securities accounts for themselves and for non-residents holding their own accounts with a “central securities depository” or with an account licensed by the National Bank of Belgium "deposit bank" that performs similar functions
  • The new tax concerns all securities (including cash on the securities account) if the average value of the securities account exceeds €1 million, with the tax determined based on the entire average value.
  • The tax rate of 0.15% will apply on the average value of a securities account.


Read a February 2021 report prepared by the KPMG member firm in Belgium

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal