Belgium: Guidance addressing tax treatment of participations in investments funds

Guidance addressing various tax issues regarding Belgian fund tax reporting

Guidance addressing various tax issues regarding Belgian fund tax reporting

The Belgian tax authorities on 10 June 2021 published guidance (Circular Letter 2021/C/56) addressing various tax issues arising when Belgian private individual investors hold participations in investment funds (“fund of funds”) that themselves invest in other funds (“target funds”).

The guidance in Circular Letter 2021/C/56 addresses situations when (since 2006) Belgian-resident private individual investors have been subject to capital gains taxation on exiting from an investment fund—by sale of the shares or units, the shares’ redemption, or the fund’s liquidation. This form of tax has been known as “Reynders tax,” “savings tax,” “exit tax,” or “BTIS tax.”

KPMG observation

The issuance of the guidance provides clarity about a range of issues and affords taxpayers an opportunity to review and consider options regarding their Belgian fund tax reporting.

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


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