On 22 January 2015, the Belgian Constitutional Court cancelled the retroactive increase of tax rate of the Belgian annual tax for tax year 2013.
Belgian and foreign collective investment vehicles have to pay an annual tax on 31 March if they are registered with the Belgian regulator (FSMA) and have Belgian shareholders or unit holders. The tax base is linked to the fund’s net asset value. Until 2013, the tax rate was 0.08%.
The tax rate was changed by article 106 of the law of 17 June 2013. It was increased to 0.0965% as of 1 January 2013 and slightly decreased to 0.0925% as of 1 January 2014 onwards. However, this increase occurred although the tax should have already been paid for the tax year 2013.
Thus, this retroactive rate increase was found to infringe the Belgian Constitution.
We believe that this decision is very positive sign for Belgian and foreign collective investment vehicles that paid Annual Tax in 2013. Indeed, they can claim a refund for the cancelled retroactive tax rate increase (i.e. 0.0165%) until 31 December 2017.
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