Collective investment vehicle (CIV) with legal personality (e.g. SICAV)
Belgian tax on savings income: how is it calculated?
The Belgian tax on savings income is applicable in case of sale or redemption of shares of undertakings for collective investment - (UCI)/UCI in transferable securities (TS) - or in case of liquidation of a UCI(TS) with more than 10% (for shares of UCI and UCITS acquired since 1 January, 2018) or 25% (for shares of UCITS acquired before that date) of assets invested in debt-related assets. The percentage of the assets of the fund invested in debt-related assets is the so-called Asset Test. This tax only applies to Belgian resident individuals.
The investor is taxed on the income on debt-related assets accumulated during the detention period. This amount is the Belgian Taxable Income per Share (BTIS), which reflects the accumulation of income on debt-related assets. The taxable basis will be equal to the difference between the BTIS on the date of sale or redemption and on the date of acquisition.
Where no BTIS is calculated for the fund, the taxable basis will equal the capital gain earned by the investor multiplied by the Asset Test. If no Asset Test is available, the taxable basis will equal the full capital gain earned by the investor.
The necessity of the Asset Test
As only UCIs with more than 10% (for shares acquired after 1 January, 2018) or 25% (for shares acquired before 1 January, 2018) of their assets invested in debt-related assets are within the scope of the Belgian tax on savings income, it’s crucial for any fund distributed on the Belgian market to be able to provide Belgian investors and distributors with accurate and up-to-date information regarding its Asset Test. The Asset Test is indeed the only accurate information for determining if a UCI(TS) is within the scope of the Belgian tax on savings income.
In addition, the need to calculate the BTIS for a particular fund will depend on its Asset Test.
If no BTIS is calculated for a particular fund, the Asset Test is used to calculate the taxable amount.
The necessity of the Belgian taxable income per share (BTIS) calculation
The BTIS computes, upon each net asset value (NAV) calculation (so potentially on a daily basis), the share of the NAV consisting of income (unrealised and realised) from debt-related assets.
In case a BTIS is calculated for the fund, the taxable basis of the investor will be equal to the difference between the BTIS on the date of sale or redemption and on the date of acquisition.
How PwC’s Belgian Tax Fund Reporting Services can help
Belgian Asset Test annual computation
PwC has extensive experience in the calculation of Asset Tests and BTIS and serves many clients who entrust us in this context. Our methodology is proven and documented, and we follow the evolution in tax closely and adapt our methodology reactively as needed.
Belgian Taxable income per share (BTIS) computation
For the calculation of BTIS, we offer a machine-to-machine solution allowing you to receive, according to the calculation rhythm of the fund’s NAV (daily, weekly, monthly, etc.), the BTIS computation required by Belgian individual investors.
