Belgium: New “tax haven” jurisdictions list for dividends received deduction

Belgium: New “tax haven” jurisdictions list

A Royal Decree published 10 March 2016 revises the list of “tax haven” jurisdictions for purposes of the dividends received deduction (DRD). Under Belgian tax law, dividends received from participations in companies that are considered to be located in “tax haven” jurisdictions cannot benefit from the DRD.

Related content

A country is defined to be a “tax haven” if: (1) the nominal rate of the corporate income tax is less than 15%; or (2) the effective corporate tax burden is less than 15%. Also, the DRD is not available for countries that are not included on the “tax haven” list if the country does not have a corporate income tax system or does not impose corporate income tax on certain companies.

New “tax havens” identified in 2016 list

The March 2016 Royal Decree revises the list of “tax haven” jurisdictions for the first time since 2005. The new list is shorter than the old list, and contains the following countries (countries listed in bold are new on the “tax haven” list): Abu Dhabi, Ajman, Andorra, Bosnia and Herzegovina, Dubai, Gibraltar, Guernsey, Jersey, Kyrgyzstan, Kuwait, Kosovo, Liechtenstein, Macao, Macedonia, Maldives, Isle of Man, Marshall Islands, Micronesia, Moldova, Monaco, Montenegro, Oman, Uzbekistan, Paraguay, Qatar, Ras al Khaimah, Serbia, Sharjah, East Timor, Turkmenistan, and Umm al Quaiwain

Taxpayers are allowed to provide proof that a country is not a tax haven.  In such instances, it appears that the tax administration will request proof the nominal rate of corporate tax equals 15% or more and that the effective tax rate equals 15% or more.

Effective date

The Royal Decree is applicable for dividends allowed/attributed as from 1 January 2016. As an exception to this rule, for accounting periods ending before 1 April 2016, taxpayers can still rely on the prior tax haven list.


Read a March 2016 report prepared by the KPMG member firm in Belgium: New list of tax havens for the purpose of the Dividends Received Deduction

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG's new digital platform