Short Reads

New circular letter confirms income tax neutrality of AIFM Law

New circular letter confirms income tax neutrality of AIFM Law

New circular letter confirms income tax neutrality of AIFM Law

15.09.2015 BE law

The Belgian tax administration has just published a new circular letter pertaining to the income tax treatment of investment companies. The circular letter (click here for the French version and here for the Dutch version) confirms that the Belgian AIFM Law of 19 April 2014 does not have any (adverse) impact on the income tax treatment of several types of Belgian investment vehicles, such e.g. as the SICAV/BEVEK, the SICAF/BEVAK, the private PRICAF/PRIVAK and the SIC/VBS.

As you may be aware, the AIFM Law created some mismatches in cross-references used in the Belgian Income Tax Code (ITC) on the one hand and in the regulatory framework applicable to several types of regulated investment entities on the other hand. This resulted in some uncertainty as to whether after the entry into force of the AIFM Law, these entities would continue to be subject to certain (favorable) tax provisions, such as the special corporate income tax regime provided by Article 185bis ITC and the general withholding tax exemption laid down in Article 116 RD/ITC. The attached circular letter now explicitly confirms that this is indeed the case.

The principle that the AIFM Law does not negatively impact the income tax treatment of e.g. the institutional SIC/VBS has already been confirmed by the Belgian Ruling Commission on various occasions. The present circular letter offers the advantage (i) that it confirms that the ‘income tax neutrality’ of the AIFM Law also applies to other investment company types, such as the SICAV/BEVEK, the SICAF/BEVAK and the private PRICAF/PRIVAK), and (ii) that, at least to a large extent, it takes away the need for investment companies to apply for their own individual tax ruling in order to obtain certainty on their income tax treatment.

For completeness’ sake, please note that the Belgian tax administration already confirmed several months ago that the AIFM Law also does not negatively impact the VAT treatment of Belgian regulated investment companies (please refer to one of our earlier newsletters for more information on this topic).

Team

Related news

24.09.2020 BE law
Stibbe hosts a webinar on dawn raids organised by IBJ/IJE

Seminar - On 24 September 2020, several Stibbe lawyers ​​​​​explain the rights and obligations of companies when confronted with announced or unannounced raids. What do to when, for example, tax authorities, the competition authorities, police services or a bailiff are at your doorstep?

Read more

08.07.2020 NL law
COVID-19 update and Guidelines published on the Dutch implementation of DAC6

Short Reads - The EU Mandatory Disclosure Directive (“DAC6”), introducing a reporting requirement for intermediaries and/or taxpayers of certain cross-border arrangements that are perceived to be aggressive, is effective as of 1 July in the Netherlands. By his letter of 26 June 2020, the Dutch State Secretary of Finance granted deferral of the Dutch reporting deadlines until 1 January 2021.

Read more

07.07.2020 NL law
Mandatory disclosure-verplichtingen voor grensoverschrijdende constructies (‘DAC6’)

Short Reads - Per 1 juli 2020 zijn intermediairs (en in sommige gevallen belastingplichtigen) gehouden om bepaalde potentieel fiscaal agressieve grensoverschrijdende constructies te melden bij de fiscale autoriteiten. Deze verplichting vloeit voort uit de Nederlandse implementatie van de EU-richtlijn inzake ‘mandatory disclosure’ (hierna: “DAC6”). Met DAC6 beoogt de Europese Commissie de internationale fiscale transparantie te bevorderen en ongewenste fiscale praktijken tegen te gaan.

Read more

15.07.2020 NL law
Emergency Act on Conditional Final Dividend Withholding Tax Levy submitted to Dutch parliament

Short Reads - On Friday 10 July 2020, a member of the Dutch opposition party Groenlinks has submitted an initiative legislative proposal for a Conditional Final Dividend Withholding Tax Levy Emergency Act (the 'Proposal') to Dutch parliament. The Proposal provides for a conditional final Dutch dividend withholding tax ('DWT') levy due in the event of certain cross-border reorganizations.

Read more

22.06.2020 NL law
Public investment funds in the Netherlands - 2020

Articles - What does the fund registration process involve, e.g., what documents are required to be filed? What are the consequences for failing to register a fund that is required to be registered in Dutch jurisdiction? Or, What are the types of entities that can be public funds in your jurisdiction?

Read more