Tax Regime for the Sharing Economy,

The Programme Law of July 1, 2016, sets up a framework for taxing income received from the sharing economy, consisting of an advantageous (but limited) tax regime for personal service providers who run through a digital platform and tax withholding at source by the digital platform. The sharing, or peer-to-peer, economy is booming as digital platforms and apps (such as Uber, MenuNextDoor, Airbnb, and AirBsit) …

Belgium introduces Transfer Pricing Documentation

Apart from the new tax regime for the sharing economy, the Programme law of 1 July 2016 (Belgian State Gazette 4 July 2016) introduced a number of other fiscal measures, including provisions that introduce transfer pricing documentation in line with Action 13 of the OECD’s BEPS project and other budgetary measures, including measures to combat tax fraud. The Law implements the three-tiered standardized approach set …

New Penalties for Failure to Report Legal Arrangements

In 2015, Belgium introduced a transparency or “look-through” tax for legal arrangements such as trusts and trust-like arrangements and for other legal arrangements that have legal personality. The founder or the sponsor of such legal arrangement is taxed on the income of the legal arrangement as if it was his personal income, unless a beneficiary has received the income. Moreover, when the original founder dies his …

Belgium Extends Reporting of Payments to Tax Havens

Since 2010 Belgian companies and permanent establishments of foreign companies must report in their annual tax return all (direct and indirect) payments they have made to tax havens (art. 307 ITC 1992) for a total of EUR 100,000 or more. If they are not reported, these payments are not tax deductible. When reported, such payments are only tax deductible if the taxpayer can justify that …

Belgium updates list of tax havens

In two Royal Decrees dated 1 March 2016 (published in the Belgian State Gazettes of 10 and 11 March 2016), the Minister of Finance has updated the list of countries which are deemed to have an advantageous tax regime. The first list relates to the participation exemption, the basis for the Belgian holding company regime. One of the conditions for the participation exemption or dividend received deduction …

European Commission proposes harmonised matrimonial property regime

The European Commission has adopted proposals for a common property regime for international couples. These include two regulations, one that governs matrimonial property regimes for married couples and a second one that deals with property consequences of registered partnerships. The European Commission has found that 13 % of 2.4 million new marriages and 19 % of the 211,000 registered partnerships have an international dimension. The European Commission has been working on …

UK introduces “PSC Register”

From 6 April 2016, most UK companies and LLPs will be required to keep a “PSC Register” in which they list “People with Significant Control”, People with significant control are mostly individuals who have significant control over the company or LLP, because they directly or indirectly own more than 25% of the shares ; directly or indirectly hold more than 25% of the voting rights ; …

UK introduces “PSC Register”

From 6 April 2016, most UK companies and LLPs will be required to keep a “PSC Register” in which they list “People with Significant Control”, People with significant control are mostly individuals who have significant control over the company or LLP, because they directly or indirectly own more than 25% of the shares ; directly or indirectly hold more than 25% of the voting rights ; …

Switzerland, as a direct democracy, organises about five referendums every year.  On Sunday, Swiss voters have rejected proposals to restrict immigration and to abolish the favourable tax regime for wealthy foreigners living in Switzerland. The major issue in the referendum of 30 November was the initiative “Save Our Swiss Gold”, that would have obliged the government to increase its gold reserves, and to shore up …

Belgium adapts legislation to take account of personal and family circumstances

On 11 September 2015, the tax authorities published an addendum to Practice Note Ci.RH.331/575.420 (AOIF 8/2008) with respect to the granting of benefits linked to a taxpayer’s personal or family situation. The addendum is issued in response to a reasoned opinion issued by the European Commission on 16 July. The Commission asked Belgium to adapt its rules on tax benefits connected to the personal or family situation …