Private Client news

Greenille by Laga Newsflashes

Overview of the latest Private Client news

More EEA legal arrangements in scope of Belgian Cayman Tax

3 December 2018

On 3 December 2018 a new Royal Decree was published regarding Belgian Cayman Tax. Following this new Royal Decree more EEA legal arrangements are in scope of Belgian Cayman Tax.

Belgian UBO register update

28 September 2018

The deadline to report the required information is extended until 31 March 2019 at the latest. An FAQ has also been published.

Transfer of assets to a joint bank account

25 September 2018

What can you do when you transfer ‘own assets’ to a joint bank account? We have found a very simple solution to avoid discussion as to the ownership of those assets.

Valuation of usufruct

30 August 2018

The yearly statutory conversion tables of usufruct were published in the Belgian State Journal of 3 July 2018. They apply as of 13 July 2018.

Budget agreement proposes changes to the benefit in kind on real estate

17 August 2018

Following recent case law, the budget agreement of 28 July 2018 provides new valuation rules for the benefit in kind for the free disposition of real estate.

The Law of 22 July 2018 amends the matrimonial property law

14 August 2018

The law introduces some changes to the regime of separation of property.

The Law of 22 July 2018 amends the matrimonial property law

7 August 2018

The law introduces some changes to the default regime of community property.

Reparations and additions for Inheritance Law of 2017

3 August 2018

The Law of 22 July 2018 provides some reparatory changes and adds some new rules to the Inheritance Law of 2017.

New inheritance and gift tax in the Flemish Region as of 1 September 2018

31 July 2018

A new Flemish Decree  and some recent decisions of the Flemish tax administration provide details on several tax aspects of the new inheritance law.

New family property law as of 1 September 2018

20 July 2018

On 19 July 2018 the federal Parliament approved a new matrimonial property law.

The law also provides some reparatory changes to the new inheritance law, which was approved last year.

Both laws (new matrimonial property law and new inheritance law) will apply as of 1 September 2018.

National courts cannot issue a national certificate of succession in cross-border inheritance cases

26 June 2018

The Court of Justice of the European Union ruled a judgment in case C-20/17 (Oberle) on 21 June 2018 on the interpretation of article 4 of the European Succession Regulation.

Gifts with reservation of usufruct in a foreign notarial deed are once again untaxed

15 June 2018

The Council of State issues a 12 June 2018 decision annulling the Flemish Tax Authorities' position statement SP 15004.

Parliament approves draft law modifying the divorce procedure

24 May 2018

Divorce by mutual consent will be completely done in writing as of 1 September 2018. 

Civil partnership qualifies as an enterprise

18 May 2018

The reform of Belgian Business Law introduces new obligations for civil partnerships as from 1 November 2018. This entails a compulsory registration at the Crossroads Bank for Enterprises and an accounting obligation.

Living will and patient’s rights: equally relevant to deal with personal and patrimonial aspects

19 April 2018

A look at Belgium's legal framework for end of life care and planning

Did you know that there are two different Aldis?

1 March 2018

The two different entities are now considering a rethink of their collaboration. It will be a challenge – especially for the shareholder-familymembers, but it may provide substantial advantages.

The misleading simplicity of the tax on securities accounts

21 February 2018

The Belgian Parliament recently adopted a new tax on securities accounts. In an article published in TFR 2018, n°535 by Larcier, Greenille by Laga's Patrizia Macaluso looks at the extent to which this tax can affect family planning.

How to deal with intense family conflicts and disputes

9 February 2018

Conflicts and disputes between family members are often highly intense and emotionally charged. Even more so than during a divorce or when a joint venture goes down the drain, getting a conflict between family members out of a destructive spiral is very challenging. This is partly due to the fact that inheritance law provides mechanisms that enhance the intensity of conflict.

Reform of registration duties and inheritance taxes in the Walloon Region: alleviated taxation for certain transactions

25 January 2018

The reform aims at lowering the tax burden on the acquisition of houses and stimulating the voluntary registration of movable gifts between non-related persons.

Beware of life annuity pitfalls

16 January 2018

Belgium’s Court of Cassation confirms nullity of a life annuity that is not an aleatory contract.

From family enterprise to enterprising family

19 December 2017

An outline of the Family Dynamics model by Greenille by Laga Partner Alain Laurent Verbeke.

Exit participation clauses in the Flanders Region?

15 December 2017

In the Flanders Region, a participation clause (in a marital contract for separation of assets) will be subject to inheritance tax as of 24 December 2017.

Legislator closes Cayman Tax Loopholes

11 December 2017

The Cayman Tax, introduced in 2015, is essentially a look-through tax applicable to Belgian Personal Income Tax (“PIT”) and Belgian Legal Entities Tax (“LET”). It targets income generated by qualifying legal arrangements, by attributing it to and taxing it in the hands of the founder or third-party beneficiary of such an arrangement, as if the latter had received this income directly. Next to this transparent approach, the Cayman Tax also aims at taxing liquidations of legal arrangements and certain transfers of (part of) the assets (for legal arrangements with legal personality, so-called ‘Type 2 arrangements’, as opposed to the Type 1 legal arrangements lacking legal personality). Apart from the effective taxation, there is (since 2013) also an obligation for founders and third-party beneficiaries of legal arrangements to report the existence of the legal arrangement in their annual tax return. The Cayman Tax was amended for the first time at the end of 2015 (see previous newsflash coverage).

Inheritance tax: flat tax regime would be much fairer

6 December 2017

Greenille by Laga Partner Alain Laurent Verbeke has written an opinion, published by De Tijd, regarding the inheritance tax regime.

In his published opinion, Alain Laurent argues that a flat tax does not force people to donate (for fiscal purposes), rewards transparency and allows society to gain its fair share without subjecting spouses and children to stifling taxation after inheritance.

Have you ever heard about ‘Family Social Responsibility’?

5 December 2017

In their book ‘Mommy, why are we rich?’ (2015, Intersentia) authors Prof. Dr. Alain Laurent Verbeke and Dr. Tijs Besieux form a plea to address Family Social Responsibility as an integral component of family wealth.

Be prepared for the new inheritance law

29 November 2017

A new heritage guide (Erfenisgids/Guide Successions) was published as a supplement to the De Tijd and L'Echo issue of 25 November 2017. Alain Laurent Verbeke and Hélène Casman contributed to the guide regarding donations under the scope of the new law. Alain Laurent and Hélène were part of the expert group that helped Minister Koen Geens draft the new inheritance law.

Forced heirship and the European Succession Regulation

27 November 2017

Are the rules of forced heirship part of the international public policy?

The new inheritance law: 3 questions

23 November 2017

The De Tijd newspaper asked Greenille by Laga Partner Alain Laurent Verbeke three key questions around the new inheritance law. Alain Laurent was part of the expert group set up by Minister Koen Geens in drafting the new law. The questions focus on the reduced forced heirship share and the introduction in Belgium of ‘pactes successoraux’.

ECJ issues very first decision on the European Succession Regulation (Kubicka case, C-218/16)

16 November 2017

The European Court of Justice ruled that a ‘vindicationslegaat’ should be accepted and executed in Germany without further formalities. Germany cannot convert the ‘vindicationslegaat’ into a ‘damnationslegaat’. 

Inheritance tax on participation clauses

13 October 2017

The participation clause is a very common clause in marital contracts of property distribution. It allows participation in the assets regardless of the assets' principal separation. A new pre-draft law by the Flemish Government introduces inheritance tax on these clauses. In Greenille by Laga's opinion, the Flemish Government introduces a discrimination against spouses married under the default regime.

Read more of Greenille by Laga's view.

Belgium implements the fourth anti-money laundering Directive - including UBO-register

10 October 2017

On 6 October 2017, a new law on anti-money laundering, counter terrorism financing and the use of cash was published in the Official Journal. The law transposes the fourth Directive on anti-money laundering (‘AML 4’) and the updated recommendations of the Financial Action Group into national law, while replacing the previous law of 1993 on anti-money laundering.

The most important change is the creation of a national Ultimate Beneficial Owner register (‘UBO-register’). Belgian companies and other legal entities must collect the necessary information on their beneficial owner(s), which is recorded in the UBO-register.

Usufruct on gifted assets

5 October 2017

Usufruct of the surviving spouse on gifted assets under the old and new inheritance law.

How do you make an indirect gift through bank transfer (from the donor’s account to the donee’s)? Greenille by Laga’s position

2 October 2017

One can make a gift through bank transfer whilst mentioning “gift” on the transfer document and whilst using e-mail.

Valuation of usufruct

27 September 2017

In the State Journal of 11 July 2017, the yearly statutory conversion tables of usufruct were published.

They apply as of 21 July 2017.

Income tax regime for interest received on foreign savings under ECJ spotlight

22 September 2017

Belgian income tax regime for interest received on foreign savings accounts may be contrary to EU Law.

New inheritance law from 1 September 2018: Should you make a declaration to maintain the old rules?

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?

Flemish Tax Authority’s position on a Dutch STAK

7 September 2017

The Flemish tax authority recently published its position on a Dutch Stichting-Administratiekantoor holding French real estate.

New bill reforming Belgian inheritance law published: Should you make a declaration to maintain the old rules?

1 September 2017

Find out about the most important aspects of this major reform.

Belgian Family Partnership and Real Estate

21 August 2017

Advance tax ruling of the Flemish Tax Authority on registration duties and inheritance tax on a family partnership and real estate published.

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).

Legislative change in Flanders will impact tax planning between spouses

9 August 2017

Flemish government announces legislative changes to tackle inheritance tax planning through matrimonial contracts.

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.

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