A fiscal incentive reserved for Belgian companies.
All Belgian-based companies wishing to benefit from a reduction in tax and an attractive investment of funds can use the Tax Shelter mechanism, apart from audiovisual and televisual production companies. From sole traders to companies listed on the BEL-20, there is no limit in terms of size or activity sector, as long as the company carrying out the operation is a Belgian legal entity and displays a positive “movement in reserves” for the year of the operation.
For legal entities benefiting from a reduced rate of taxation, the overall gain over the term of the operation may be negative by as much as -15.80% (Tax Year 2021).
Articles 194ter and following of the 1992 CIR do not apply to private individuals at this stage. Following the reform of Belgian corporation tax, SMEs which benefit from the reduced rate of taxation and whose pre-tax profits don’t exceed €100,000 have, in theory, no financial interest in investing in the Tax Shelter. In such a case, an investment could result in a negative yield.
All investors are advised to study the appropriateness of a Tax Shelter operation in the light of their own situation and, where applicable, consult with their usual financial adviser.