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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.

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