Market Taxation Guide - Belgium (Securities held in CBF)
This Market Taxation Guide (Belgium) provides the following details:
- Reference information about all taxes applied at source, through LuxCSD and its local depositories, to securities deposited in LuxCSD; and
- Instructions for obtaining relief at source or a refund of withholding tax, where these are available, through LuxCSD.
New and improved tax information and procedures that become available will be included on an ongoing basis.
Important note:
Due to shorter deadlines imposed by law, the availability of relief at source and quick refund in Belgium depends on each issuer and on the paying agents. All customers will receive the service on a “best efforts” basis upon confirmation, at event level, depending on the paying agent.
RAS and QR payments will be processed once the funds have been received from the paying agent.
Important note:
This Market Taxation Guide (including any attachments and other links) is for informational purposes only and is not intended and should not be considered to be legal advice on any subject matter. Readers of this Market Taxation Guide, whether customers or otherwise, should not act or refrain from acting on the basis of any information included in this Market Taxation Guide without seeking appropriate legal or other professional advice.
Withholding tax
Debt securities integrated into the X/N system of the National Bank of Belgium (NBB)
LuxCSD operates an X account (exempt account) in the NBB’s X/N system such that, from a fiscal point of view, all customers that hold NBB-eligible securities through LuxCSD must do so exclusively on behalf of beneficial owners (including themselves, if applicable) that qualify for exemption from Belgian withholding tax.
The standard rate of withholding tax is 0% and no relief or reclaim procedure is applicable.
As from January 2024, the EU will issue single branded EU bonds under the EU Issuance Service (EIS) that will reinforce the NextGenerationEU programme. These EU bonds will be issued by the NBB who has been appointed by the EU as the Issuer CSD. They will be held in the NBB under Clearstream Banking X account (exempt account) and are therefore fully tax exempted.
Holding restriction? | Withholding tax rate | Relief at | Quick | Standard | |
Yes | 0% | ||||
n/a | n/a | n/a | |||
Debt securities deposited with Euroclear Belgium - ESES1
| Holding restriction? | Withholding tax rate | Relief at source | Quick refund | Standard refund | |
No | 30%2 | ||||
Residents of Double Taxation Treaty (DTT) countries | No | Yes | Yes | ||
Supranational or international organisations | No | Yes | Yes | ||
Equities
| Holding restriction? | Withholding tax rate | Relief at source | Quick refund | Standard refund | |
No | 30%2 | ||||
Residents of Double Taxation Treaty (DTT) countries | No | Yes | Yes | ||
Supranational or international organisations | Yes | Yes | Yes | ||
Non-resident pension funds | No | No | Yes | ||
Foreign companies holding “qualifying” participation | Yes | Yes | Yes | ||
Foreign bonds and foreign equities
The standard rate of withholding tax is 0% and no relief or reclaim procedure is applicable.
Capital gains tax
There is no capital gains tax withheld through LuxCSD on securities held in Clearstream Banking (CBF). Capital gains tax may however be payable on specific gains. LuxCSD does not assist in this regard. Please consult your tax advisor for further information.
Stamp Duty
There is no stamp duty withheld through LuxCSD on securities held in Clearstream Banking (CBF). Stamp duty may however be payable on specific transactions. LuxCSD does not assist in this regard. Please consult your tax advisor for further information.
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1. ESES=Euroclear Settlement for Euronext zone Securities.
2. 25% on income paid from 1 January 2013 to 31 December 2015, 27% on income paid from 1 January 2016 to 31 December 2016.