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 …

Cayman Tax, continued

In two royal decrees dated 23 August 2015, the Minister of Finance announced the legal entities that are deemed to be legal arrangements that must be reported in the tax payer’s tax return if he is the founder, an heir of the founder or a beneficiary and on which he must pay tax. The first royal decree lists three legal …

The “Cayman Tax”, Fiscal transparency for trusts and other legal arrangements

The Program Law adopted by the House of Representatives on 24 July 2015, introduces a transparency tax or “look-through” tax for legal arrangements (trusts, foundations, offshore companies, …) set up by private individuals.   This Act should be published in the Belgian State Gazette in the coming week but it will apply retroactively from 1 January 2015. Background In the Belgian …

2020 Tax Return: Box XIV – Trusts

Moreover, you have to confirm whether you have set up a legal arrangement (a “construction juridique”) or whether you are the beneficiary of such a legal arrangement. This is a difficult word for a trust, a foundation, or a foreign company in which you accumulate income tax-free. Cayman tax If you have such a legal arrangement, you must also declare …