Publications
The Transfer Pricing Law Review - Chapter 2: Belgium
Although the arm’s-length principle, which forms the basis of the framework of transfer pricing rules, has had a long international history, it was only explicitly introduced into Belgian legislation in…
Publications
European law restrictions on the temporal effect of national juidicial decisions: the case of the Belgian Constitutional Court
The Belgian Constitutional Court is a court of law watching over the observance of the Constitution by the legislative authorities of Belgium. It has the power to annul, to declare…
News
Luxembourg introduces register for trusts and fiduciary arrangements
A new Luxembourg law (the “Trusts Register Law”), dated 10 July 2020, was published on 13 July 2020 and is in force since 17 July 2020.
News
Luxembourg to postpone DAC6 and DAC2 reporting deadlines
On 4 June 2020, the Luxembourg government announced that the negotiations on the European Commission proposal1 for a directive amending Council Directive 2011/16/EU dated 15 February 2011 that aims to postpone…
News
The ECJ takes positive decision on Italian FTT
In its decision of 30 April 2020, dealing with the Italian Financial Transaction Tax (FTT), the European Court of Justice (ECJ) has ruled that there is no violation of the…
News
Is the 18% of withholding tax on income paid to foreign artists and sportspersons no longer due?
On 13 May 2020, the Belgian political party, CD&V, submitted a draft bill to relax the 18% final withholding tax regime on income paid to foreign artists and sportspersons.
Info COVID-19
The value of the underlying shares has decreased (materially), resulting in the stock options being “under water”, meaning it is currently not interesting to exercise the stock options. What can we do?
A first possibility is to extend the exercise period of the stock options. Depending on the significance of the decrease of stock value, however, such an extension, potentially, needs to…
Info COVID-19
Considering the COVID-19 pandemic, is it interesting to introduce a stock option scheme within my (management) company now?
The gain which could result from stock option schemes depends on several factors such as the company’s growth expectations, market trends, geopolitical events, …
News
Spain and Portugal: slightly less sunny tax-wise
In a context of increasing mobility within the European Union, Spain and Portugal are popular destinations for, among others, pensioners looking for a milder (tax) climate. There are however, in…
Info COVID-19
I recently donated my family business exempt from gift tax, but I had to cease my economic activity temporarily. Will the exemption be maintained? (Flemish Region, Brussels-Capital Region, Walloon Region)
Flemish Region In principle, an economic activity must be continued - without interruption - for a period of three years after the donation in order to maintain the exemption. A…
Info COVID-19
Is there a reduced VAT rate applicable for the supply of medical devices and PPE such as facemasks and hydroalcoholic gels?
:: Update 07/05/2020 :: In the context of the COVID-19 crisis, there is a great need for medicines and medical devices, such as facemasks, respirators, etc. An important question here…
Info COVID-19
In what situations and under what conditions can I donate goods for charity, without negative VAT consequences?
:: UPDATE - 16/02/2021 :: When VAT payers donate goods, this can have adverse tax consequences. As far as VAT is concerned, this may mean that VAT has to be…
Publications
CJEU in KPC Herning: The Supply of Land with a Building to Be Demolished Is not Necessarily a VAT Taxable Supply of Building Land
On 4 September 2019, the Court of Justice of the European Union delivered an interesting judgment on a real estate transaction relating to the sale of land together with a…
Info COVID-19
Can a partnership be incorporated without physical presence of the constitutors?
The partnership is a commonly used control structure for estate planning purposes. A partnership is usually established between parents and children. Given the Covid-19 virus, the physical gathering is currently…
Info COVID-19
Do I get a deferment of payment for the assessment in the gift or inheritance tax (Flemish Region)?
No deferment, but a repayment plan Anyone who has received an assessment in gift or inheritance tax and who is experiencing financial difficulties can always apply for a repayment plan.…
Info COVID-19
Do I get a deferment for the filing of the inheritance tax return (Brussels-Capital Region)?
In view of the exceptional situation and the more stringent security measures, the Flemish Tax Administration has decided to extend the inheritance tax return period without incurring a tax increase.
Info COVID-19
Do I get a deferment for the filing of the inheritance tax return (Walloon Region)?
In view of the exceptional situation and the more stringent security measures, the Flemish Tax Administration has decided to extend the inheritance tax return period without incurring a tax increase.
Info COVID-19
Do I get a deferment for the filing of the inheritance tax return (Flemish Region)?
In view of the exceptional situation and the more stringent security measures, the Flemish Tax Administration has decided to extend the inheritance tax return period without incurring a tax increase.
Info COVID-19
My employees and/or directors are willing to temporary (partially) waive their salary to support the company. Are there any (negative) tax consequences to be taken into account?
Employees and directors may be asked to agree to a temporary renunciation of their wages considering liquidity challenges faced by many companies as a result of the COVID-19 pandemic. Such…
Info COVID-19
What is from a tax point of view the best way to accommodate my employees in view of their telework / working from home?
Employers can grant a temporary home working allowance to their employees as long the “COVID-19 measures” are in force (currently until 3 May 2020).
Info COVID-19
Are there any benefits I can grant in a tax-friendly way to my employees to keep them motivated?
There are several possibilities to support employees and keep them motivated :
Info COVID-19
To compensate my employees for their loss of income due to temporary employment, I would like to pay them a supplement on top of their (legal) unemployment benefits. What is the tax and social security treatment of these payments?
To soften the loss of income of the employees being confronted with temporary unemployment due to the COVID-19 pandemic, employers may want to pay a supplement on top of the…
Info COVID-19
My employees are working overtime. Are there any tax incentives I could benefit from?
In a press release of 11 April 2020, the government announced a second wave of measures to support the Belgian economy. One of these measures which is soon to be…
Info COVID-19
My employees are working in shifts. Are there any tax incentives I could benefit from?
For several years now, Belgian tax law provides for a (partial) withholding tax exemption on wages paid to night and shift workers. This measure implies that employers employing employees on…
Info COVID-19
Can I still donate for a Dutch notary?
Now that the border between the Netherlands and Belgium is as good as closed, the question arises whether a Belgian resident can still make a donation of movable property before…
Info COVID-19
I'm sick: can the notary still come by to make a will?
In case you are sick and wish to draw up a will, a holographic will is the simplest way. However, sometimes a notarial will or an international will may be…
Info COVID-19
I'm not sick : how can i still make a will?
Many people are considering to make a will in these corona-times, just in case. However, the drawing up of a will is not obvious these days given the lockdown-measures to…
Info COVID-19
What are potential pitfalls for multinational groups when dealing with financial distress in times of COVID-19?
Parent companies of multinational groups or entities managing the group treasury function will consider their options to provide liquidity carefully in times of financial distress. When considering liquidity management through…
News
Filing a Belgian non-resident income tax return for the very first time? Register before 1 June 2020!
Individuals receiving income taxable in Belgium but who do not qualify as Belgian tax residents, are in principle required to file a so-called Belgian non-resident income tax return.
News
VAT and EU quick fixes: further guidance from the Belgian VAT authorities
Three months have passed since the entry into force of the EU quick fixes for VAT. As explained in our previous newsflashes, these quick fixes should simplify the VAT rules…
Info COVID-19
What is the impact of the COVID-19 crisis on the applicable social security scheme?
On 30 March 2020, the European Commission published a fact sheet regarding frontier workers and posted workers affected by the restrictions on free movement of people within the EU as…
Info COVID-19
What are the VAT consequences if an effective refund is replaced by a new ticket or voucher for an event or booking at a later time in case an event or travel/hotel/restaurant or other booking is cancelled?
As a result of the imposed COVID-19 measures, numerous cancellations of events and bookings for flights, hotels, restaurants, etc. have occurred. In order to mitigate the loss of revenue due…
Info COVID-19
Do I already have to pay VAT on gift vouchers and other vouchers/coupons?
Gift vouchers and other coupons that can be redeemed as a full or partial consideration for the supply of a good or service may qualify as a "voucher" under the…
Info COVID-19
What is the impact of the COVID-19 crisis on the application of double tax treaties?
As a result of the COVID-19 crisis, many cross-border workers are unable to physically work from their country of employment, some have to work from home, others are laid off,…
Info COVID-19
Help, my accountant has corona and can't file my VAT return in time. Is this a valid excuse?
Here is the answer no. Being compliant with VAT reporting obligations is a requirement that belongs to the company itself. In principle, a late filing of the VAT return cannot…
Info COVID-19
Do I have to cancel my VAT number now that I no longer have outgoing transactions?
Your VAT number should not be cancelled if you, as a VAT payer, no longer carry out any VAT taxable activities for a certain period of time (e.g. due to…
Info COVID-19
I want to switch to internet sales, what are the main traps with respect to VAT?
:: UPDATE - 01/09/2020 :: A company that wants to set up a website where customers can buy goods and whereby the company facilitates the transport to the private customers…
Info COVID-19
Is there a possibility to request a VAT refund on travel vouchers when the booking is cancelled?
There are different situations conceivable here. A distinction has to be made between the situation where a traveller has booked all parts of his journey on his own (transport, hotel,…
Info COVID-19
Can I request a VAT refund as a hotel owner in case VAT has already been paid on advance payments but my clients do not show up because of the COVID-19 outbreak?
If a hotel owner is unable to provide hotel services because the customers do not show up, he can, in principle, reclaim the VAT on the advance payments through the…
Info COVID-19
Can I reclaim the VAT that has been paid on tickets for an event when the event is cancelled due to the COVID-19 outbreak?
The VAT treatment of the sale of tickets for events is the subject of discussion as there is no uniform interpretation within the EU. However, the exact VAT-qualification may have…
Info COVID-19
Are there any VAT-consequences in case I am renting a building to my tenant under the optional VAT regime but the rent payments are currently suspended?
As a landlord you can agree to temporarily suspend the rent payments from your tenants. There is no VAT due during this suspension period.
Info COVID-19
Which VAT rate applies to the supply of medical devices, medicines, etc.?
:: UPDATE - 16/02/2021 :: In the context of the COVID-19 crisis, there is a great need for medicines and medical devices, such as facemasks, respirators, etc. An important question…
Info COVID-19
As a restaurant holder, should I apply a different VAT rate when delivering meals at home?
:: UPDATE - 16/02/2021 :: In normal circumstances, restaurant and catering services, excluding the provision of beverages, are subject to the reduced VAT rate of 12%. Drinks offered as part…
Info COVID-19
Are there any consequences from a VAT perspective in case a company has to destroy or discard goods due to the COVID-19 outbreak?
It is conceivable that perishable goods such as food, flowers or perishable raw materials will become unsellable as a result of the compulsory closure of certain companies.
Info COVID-19
What are the possibilities to claim a VAT refund if an invoice is not paid or will not be paid within due time?
As a result of the COVID-19 crisis, suppliers and service providers will be more often confronted with unpaid invoices or invoices that may only be paid long after the due…
Info COVID-19
Are there any other possibilities to optimise the cashflow position of my business?
In addition to the above-mentioned special measures in the context of the COVID-19 outbreak, there are still opportunities under the existing VAT-regulation that VAT-taxable persons might use. We will list…
Info COVID-19
Can an accelerated refund of my VAT-credit be requested?
Yes, the Belgian government has granted an accelerated refund of the VAT credit with respect to the February 2020 VAT return for all companies that submit monthly VAT returns and…
Info COVID-19
What does the existing deferral measure from the Belgian government with respect to VAT include? Are there any specific formalities to be completed?
:: UPDATE - 16/02/2021 :: Through a duly motivated request that is submitted to the Regional "Tax Collectors Office" (in Dutch: Regionaal Invorderingscentrum) of the postal code of your place…
Info COVID-19
Excess amounts prepaid? Can the payments be recuperated quickly?
In the event that an excess amount has been prepaid, a request for a refund can be submitted through the MyMinfin electronic platform, until the last day of the third…
Info COVID-19
The taxable result of the current financial year is currently difficult to predict. How to proceed with tax prepayments?
During the course of the financial year, there are several due dates prior to which tax prepayments (“TPP”) can be made. For financial year 2020 (closing date on December 31),…
News
Luxembourg to deny the deduction of interest and royalty payments to blacklisted countries
On 30 March 2020, the Luxembourg Government published a draft bill of law introducing measures to deny the tax deduction of interest and royalty payments made to affiliated parties established…
Info COVID-19
Does COVID-19 provide planning opportunities in view of valuations?
Yes, uncertainty impacts certain parameters in valuations, having a negative impact on the outcome. Values of distressed companies and assets are expected to be lower than their non-distressed counterparts. Next…
Info COVID-19
Should intercompany agreements be updated in view of COVID-19?
Intercompany agreements are often the starting point in assessing transfer prices in a group context. It is very likely that the COVID-19 crisis will have an impact on terms and…
Info COVID-19
Does COVID-19 have an impact on transfer pricing policies?
COVID-19 is very likely to have a significant impact on the results of multinational companies worldwide, because of disrupted (global) supply chains, significantly impacted demand, the search of liquidity, etc.…
Info COVID-19
Have the payment periods for tax debts been deferred? Are late-payment interests and/or tax increases due in case of a deferred payment?
1. Automatic deferral for income taxes For corporate income tax, personal income tax, legal entities tax, and non-residents tax debts the payment periods have automatically been deferred by two months…
Info COVID-19
Have the deadlines for the filing of income tax returns been postponed?
The deadlines for the filing of corporate income tax, legal entities tax and non-resident/corporate tax returns that had to be filed between 16 March (incl.) and 30 April (incl.) has…
News
Luxembourg law implementing EU reporting obligations adopted
The law implementing the Council Directive (EU) 2018/822 of 25 May 2018 as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements…
Info COVID-19
International responses to COVID-19 : overview provided by WTS GlOBAL
Overview International COVID-19 measures : Our fellow members of WTS Global have collected information and advice on managing the impact of COVID-19 in their home markets. We are pleased to offer you…
Info COVID-19
Luxembourg tax and other specific measures announced.
Facing the pandemic, the Luxembourg government adopted a regulation on 18 March 2020 declaring a state of emergency and introducing several measures, including a partial lockdown, as also seen in…
Info COVID-19
Event cancelled? Check your VAT refund possibilities
The outbreak of the coronavirus has provoked an unprecedented surge of no-shows, postponements and cancellations in the event sector. In many cases, entrance tickets were already sold by the event-organizer…
Tiberghien Tax Law Manual
