Private Client news
Greenille by Laga Newsflashes
Overview of the latest Private Client news
New inheritance law from 1 September 2018
12 September 2017
The new inheritance law is effective September 2018 and also applies to donations before the law's entry into force. However one can opt for the old rules within the year. This choice has to be made before September 2018. Should one opt out or not?
End of double taxation on French-source dividends for private investors
9 August 2017
During recent years, the Belgian government has been increasing taxes on private investments and the income they generate. The default tax rate for dividend income has increased from 25 to 30%. The scope of the stock exchange tax has been broadened, the rates and maximum amounts of the stock exchange tax were increased several times. More recently, the government announced the introduction of a new tax on securities accounts of individuals residing in Belgium (see the newsflash on the Budget 2018 agreement).
Budget Agreement 2018 – Impact for High Net Worth Individuals and Families
3 August 2017
As you may have read in the press, the so-called Summer Agreement reached by the Federal Government last week, includes a number of tax measures potentially impacting high net worth individuals and families. Please find below an overview of these measures. For the measures put forward by the Corporate Tax Reform Agreement, reference is made to Deloitte’s Tax Reforms Hub.
New position of the Flemish Tax Administration regarding civil partnerships
15 May 2017
On 26 April 2017, the Flemish Tax Administration (Vlabel) published its new (additional) position regarding civil partnerships and the issue of split-registrations (usufruct – bare ownership). This position will enter into force on 1 June 2017 and applies to situations where parts in a civil partnership - in which securities and cash investments are held - are donated with reservation of usufruct (for example to the children).
Before 1 June 2017, the income of the civil partnership (i.e. dividends and interest) that is not distributed to the usufruct holder but is instead incorporated in the capital or reserved, is regarded as a gift. If no gift tax is paid, this income is taxable under Belgian inheritance tax if the usufruct holder passes away within 3 years after the donation.
As of 1 June 2017, Belgian inheritance tax is also due after this 3 year period if no Belgian gift tax was paid upon the split-registration.
There are however certain options to avoid this new Vlabel-position.
Ruling Commission’s Board temporarily not operational
5 May 2017
As covered by the press on the morning of 5 May 2017, the Ruling Commission’s Board is not operational until further notice.
This is due to a decision by the Council of State dd. 28 April 2017 annulling the appointment of the three French-speaking Board members, Matthieu Bataille, Serge Riga and Véronique Tai. This decision was triggered by an appeal introduced by José Vilain, a former member of the Board. This decision does not affect the appointment of the 3 Dutch-speaking Board members, Steven Vanden Berghe, Guy Giroulle and Luc Saliën.
Flemish Tax Administration targets donation of bare property
14 April 2016
Recently, the Flemish tax administration has published a new position based on which Flemish inheritance tax will apply to all tax free donations of securities or cash investments made with reservation of usufruct since 1 September 2013.