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).


Related news

29.09.2021 NL law
Gebrekkige informatievoorziening aan de ondernemingsraad bij overnamefinanciering: belangenafweging en beweegredenen

Short Reads - In deze bijdrage bespreekt Ea Visser de beschikkingen inzake Estro en PCM. Daarna gaat zij in op het politieke initiatief dat is genomen inzake de rechten van de OR bij private-equitytransacties en de reactie daarop. Ea bespreekt aan de hand van de Estro-zaak de relatie tussen de belangenafweging van het bestuur en de beweegredenen die moeten worden opgenomen in een adviesaanvraag volgens de Wet op de ondernemingsraden (WOR). Vervolgens gaat zij in op de manier waarop partijen bij een overnamefinanciering de bevindingen uit de Estro-zaak kunnen toepassen in de praktijk.

Read more

20.09.2021 NL law
AFM: Beleggingsfondsen kunnen beleggers beter informeren over duurzaamheid

Articles - Beleggingsfondsen kunnen beleggers beter informeren over duurzaamheid. De informatieverschaffing van fondsen over duurzaamheidsrisico’s en duurzaamheidskenmerken is nog vaak te algemeen, daardoor krijgen beleggers te weinig inzicht in waar ze in investeren. Dat is een van de conclusies van de Autoriteit Financiële Markten (AFM) in een verkennend onderzoek naar de toepassing van de Sustainable Finance Disclosure Regulation (SFDR).

Read more

03.08.2021 EU law
European Commission clarifies SFDR Level 1 Requirements

Articles - On 6 July 2021 the European Commission adopted the much-awaited decision C(2021) 4858 final (the “Decision”) which provides, in its annex, very useful answers to the questions raised by the European Supervisory Authorities (i.e. the EBA, ESMA and EIOPA) in their letter dated 7 January 2021 on priority issues relating to the application of the Sustainable Finance Disclosure Regulation (“SFDR” or “Level 1 requirements”).

Read more