2018 Tax Return : Stock Exchange Tax

Belgium has always charged a tax on stock exchange transactions, such as the purchase and sale of some financial instruments (bonds and stocks) on a secondary market, and the sale of mutual funds (UCITS), through a Belgium-based professional intermediary, a bank or broker.

The tax is also due when you buy or sell through a foreign bank or on an online account. And you have to declare and pay the stock exchange tax yourself, unless the overseas bank appoints a representative to do that.

The rate varies depending on the nature of the instrument, and the tax is payable by each party to the transaction. The stock exchange tax is charged at :

  • 0.35% on the sale or purchase of shares (maximum €1,600 per transaction);
  • 0.12% for bonds and mutual funds (max. €1,300);
  • 1.32% on the sale of accumulation mutual funds (capped at €4,000);

When a distribution fund redeems its units, no tax is due, but the sale or purchase of such units on the secondary market is taxed at 0.09% (max. €1,300).

Belgian residents who must pay the stock exchange tax must file a tax return and pay the tax before the end of the second month following the taxable transaction.

 

Your Tax Return :

Author: Marc Quaghebeur

Marc Quaghebeur is a Belgian tax lawyer with Cabinet DAVID specialising in international tax issues and cross border estate planning. He is a member of the Brussels Bar and the Society of Trust and Estate Practitioners. He

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