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