DRD SICAV: Dividend received deduction ratio computation
Dividends distributed by a DRD SICAV and capital gains earned from the sale or redemption of shares, or in the event of a liquidation of a DRD SICAV, are exempt from corporate income tax as long as the income is derived from:
- Dividends fulfilling the qualitative conditions to be deductible from corporate tax, or:
- (Latent) capital gains fulfilling the qualitative conditions to be deductible from corporate tax.
For DRD SICAVs, you need to calculate and provide the investor with the percentage of income fulfilling the conditions to be deductible from corporate tax to enable the investor to determine the share of exempt income received:
- In the event of a dividend distribution, and
- In case of the sale or redemption of shares of the SICAV (i.e. at each NAV date)
PwC can calculate the DRD ratio in case of dividend distribution and at each NAV
Our PwC Financial Services specialists have extensive experience in calculating the DRD ratio for clients. Our Belgian Tax Fund Reporting Services are based on a proven, well documented methodology that we update as the Belgian tax landscape evolves.
We can set up a website with your company branding that allows Belgian investors to get the information they need to complete their annual tax reporting. They can also download the required tax certificate mentioning the DRD ratio applicable either to the dividend distributed by the DRD SICAV, or to the sale or redemption of shares of the DRD SICAV.
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