We take this opportunity to proudly inform you of the fact that we are integrating our activities with the Moore Belgium team as of the 1st of January 2021. The fact that we have become a part of this powerful body means that we can offer you continuity and guarantee a wider range of future-oriented services.
The contribution in kind of a receivable may give rise to subjective discussions with the Belgian tax authorities, in particular if the receivable’s facial value is higher than its market value. On 11 June 2020, the Belgian Supreme Court ruled that there should be a symmetric treatment in the hands of respectively the contributing company and the receiving company. This Supreme Court decision is in line with the view of the Belgian tax authorities.
On 25 June 2020, the Supreme Court ruled that “own work” carried-out by a company should be activated on the company’s balance-sheet (“B/S”) and should subsequently be amortized for both BE GAAP and corporate tax purposes over the useful economic life span of the asset involved. If not, a “hidden reserve” for corporate tax purposes arises.
If an employee is put on a cross-border salary split, that person is taxable in more than one country and claims personal tax relief in his or her country of tax residence to mitigate double taxation. To be successful to claim such double tax relief, the employee will need to demonstrate physical business time spent abroad. On 15 May 2019, the Brussels Court of Appeal sheds an interesting light on how those “foreign business days” need to be evidenced.
To which extent can input VAT be deducted in case an expenditure by a taxable person also benefits a third party? The Court of Justice has recently clarified its point of view on this matter.
A remarkable COVID-19 support measure is the possibility to create a reconstitution reserve as of 2021. This is useful to improve the solvency of the company at hand. After all, when the COVID-19 crisis has had an significant impact on the equity of the company, a reconstruction reserve can offer a tax-attractive solution to restore the equity. How does this work?
It often occurs that a Director has a current-account receivable on his or her company resulting from debt-financing provided by the Director to the company. However, what happens if the Director passes away and what is the impact for Belgian succession tax purposes? What are the options?
Over the last couple of years, Belgium tax law with respect to the standard investment deduction has been amended on many occasions. One of the numerous corona measures consists of allowing taxpayers to benefit from a 25% investment deduction. What are the conditions?
According to Belgium tax law, reception costs are only 50% deductible for direct tax purposes. However, when reception costs are incurred between 8 June 2020 and 31 December 2020, they are 100% tax-deductible.
Traditionally, when persons proceed to a gift of movable goods (mostly cash or shares) the gift is registered in front of a Dutch notary. The reason is obvious: no Belgium or Dutch registration tax is thus due whereas the gift transaction has a “fixed date”. This is important, because if the person making the gift does not pass away within 3 years (possibly, this may become 4 years in Flanders as of 2021 …) as of this fixed date, no Belgium succession tax is due anymore on the gift when that person passes away afterwards. However, the Belgium legislator plans to close the so-called “cheese route” as of 1 December 2020. Does that mean that a tax-free gift is thus no longer possible?