Belgium: Stock exchange tax on foreign transactions, extended to 30 June 2017

Belgium: Stock exchange tax on foreign transactions

While the scope of the Belgian stock exchange tax has been broadened to apply to transactions made by foreign intermediaries or entities, some payment relief has been provided.

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As of 1 January 2017, transactions carried out by intermediaries established abroad (e.g., foreign banks) are subject to the Belgian stock exchange tax—provided that the order is given directly or indirectly to a foreign intermediary by: (1) a natural person having its habitual residence in Belgium; or (2) a legal entity from its registered office or permanent establishment in Belgium. 

The tax is payable, at the latest, on the last business day of the second month following the month in which the transaction occurred or was executed. For transactions in January 2017, the tax would therefore have been due by 28 February 2017 (general rule) or by 31 March 2017 (if the tax return is submitted by the Belgian resident). However, the Minister of Finance announced that an extension is granted (for all foreign transactions) until 30 June 2017.

Last week, a Royal Decree was published establishing the practical formalities for a foreign intermediary to assign a fiscal representative to fulfill the compliance formalities related to the payment and reporting of the Belgian stock exchange tax.

 

Read a February 2017 report prepared by the KPMG member firm in Belgium: Extension granted for Belgian stock exchange tax on foreign transactions till 30 June 2017

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