News

VAT on real estate leasing: What about the refund of historical VAT?

In previous editions of this magazine we presented an overview of the changes envisaged by the legislator with regard to the optional VAT on real estate leasing. This legislation has been in force since 1 January 2019 and this option can now be implemented. However, the tax authorities were quick to express their own vision regarding the VAT deduction and refund of historical VAT under this legislation.

The New Belgian Code on Companies and Associations finally approved

It was all hanging in the balance until the very end, but on 28 February 2019 the new Code on Companies and Associations (abbreviated in Dutch as “WVV”) was finally approved by the Belgian Chamber of Representatives. The new code means a thorough reform, simplification and modernisation of the existing company law.

De Langhe Attorneys assists Johan Castelein of the group Cadus with the legal and strategic aspects of the takeover of Roche4Meat.

Roche4Meat is leader in the sector of the slaughter and distribution of beef. 

De Langhe Attorneys assists Steven Brouckaert with the entry of Baltisse into the capital of Partners in Accountancy.

The collaboration with the Belgian investment fund Baltisse provides Partners in Accountancy with the possibility to continue its growth in the accountancy sector.

The General Court of the European Union rules that Belgian Excess Profit Ruling Scheme is not prohibited state aid

On 14 February 2019, the Court of Justice of the European Union took a decision on the Belgian scheme of Excess Profit Rulings Scheme (see: http://curia.europa.eu/juris/liste.jsf?num=T-131/16). The court annulled the decision of the European Commission that the scheme was considered prohibited state aid (Decision 2016/1699 of 11 January 2016).

Guarantees and sureties… small print, big consequences

Despite the fact that interest rates have plummeted in recent years, it is still not easy to obtain financing for your business. In the event that your company cannot provide any mortgage or pledge in the form of real estate or substantial claims, it is possible that the bank will ask you, as shareholder/business manager, to provide a surety for the obligations of your company.

Renovation of the Belgian property co-ownership law

On 1 January 2019, a certain number of new rules regarding the Belgian legislation on apartment co-ownership came into force. The so-called Apartment Act has been modified for the 4th time since its introduction in 1924. The most recent revision mainly focuses on relaxing the existing regulations so that renovations can be carried out more efficiently and in order to resolve disagreements between the co-owners. An overview of the “foundations” for the new legislation

Did you know you opted for the Vienna Sales Convention? The rules of the game when selling abroad.

In the case of B2B sales abroad, the terms of your contract or your general terms and conditions can result in very different legal rules.

Tax reduction for capital increases in growth companies will soon be curbed

The Summer Agreement was intended among others to stimulate investments in growth companies. The government aimed to inject an extra boost into our economy by giving private individuals a tax benefit when they increase the capital of a growth company. The ink was not yet dry on the relevant legislative initiative and a number of important changes were already foreseen to prevent abuses.

The right-hand man of Belgian entrepreneurs

By combining the best of a local law firm with the strengths of a top-tier company, De Langhe Attorneys is a trustworthy partner for many businesses presently in the Flemish market, or planning to enter. From their new office in Brussels, they work across the Belgian borders, specialising in international tax law.

The right-hand man of entrepreneurs

Legal, tax and financial. The extensive team of specialists at De Langhe Attorneys guarantees a comprehensive approach to complex cases. “Our interwoven expertise definitely offers added value in the acquisition and disposal of companies,” says Sara Burm, head of the Corporate and M&A department.

Persistence wins: draft VAT law on immovable property rental published

A year ago, we reported on the government’s intention to introduce a legal framework for VAT-taxed property rental. Now the final draft law has finally been published (http://www.dekamer.be/FLWB/PDF/54/3254/54K3254001.pdf). With a planned entry into force on January 1, 2019, it is worthwhile to provide the outlines now so that you can take this into account when planning your future projects.

Repair legislation clarifies minimum remuneration requirement for managers

The corporate income tax reform law of 25 December 2017 brought about many tax adjustments. One of the measures, the introduction/adjustment of the minimum remuneration requirement of EUR 45 000, created a number of uncertainties. With the Act of 30 July 2018, the legislator is now creating more clarity.

Anonymity will disappear: as from 30 November 2018, your shareholdership will have to be registered in the UBO register.

Following the abolition of bearer shares in 2005, the anonymity of shareholders is increasingly disappearing. The time that the (family) shareholder keeps the share register in a safe and frenetically clings to the confidentiality is disappearing.

De Langhe Attorneys assists Obton with the acquisition of Greenfrun

After the takeover and subsequent refinancing of Fieva in 2016, Obton – a prominent Danish investment fund in renewable energy- has strengthened her position on the Belgian renewable energy market once more by acquiring the shares of Greenfrun.

Outbound Acquisitions: Tax Planning for European Expansion in a Changing Landscape (2018)

Lead by Werner Heyvaert, the tax team of De Langhe Attorneys has completely updated the Belgian chapter of the digital book “Outbound Acquisitions: Tax Planning for European Expansion in a Changing Landscape” (2018 edition – published by the prestigious Practising Law Institute in New York – see https://www.pli.edu).

De Langhe Attorneys assists Intermat with the acquisition of ABM

Once again, Intermat achieves to grow through acquisition. By taking over 100% of the shares of NV Alle Bouw Machines, Intermat realises a complementary growth of its activities in sale and renting of building equipment. Both geographically (Intermat is currently positioned in 5 different locations) and product wise.

De Langhe Attorneys assists Vybros Invest with the acquisition of Raes Constructies

After the successful takeover of Berle earlier this year, Vybros expands – through Raes Constructies – her activities as technical service provider and in the area of metal construction works. At the same time, founder and strong entrepreneur André Raes commits to stay involved in the further development of the company.

Dividend withholding tax: The Netherlands abolishes and France reduces for non-resident individuals. What is the impact for Belgian shareholders?

The Netherlands abolishes dividend withholding tax and France reduces its dividend withholding tax for non-resident individuals. What is the impact for Belgian shareholders?

De Langhe Attorneys assists Vybros with its participation in Troost Mechanical Services.

Together with the current management directed by Walter Kestens (Tienen Invest Maatschappij), who also enter into the share capital of BV Troost Mechanical Services, Vybros engages itself to set a new course for the Dutch company. Vybros considers this investment as complementary to its current activities relating to technical services and metal processing.

The new interest deduction restriction

The interest that a company pays on loans is in principle deductible as a professional expense, provided that a number of thresholds are met.  One of these thresholds is the so-called “thin capitalisation regulation”, which limits the deduction of interest for companies that are over-indebted in relation to their equity (undercapitalisation).

Does the UBO register mean the end of your fiscal anonymity as a shareholder?

The Ultimate Beneficial Owners (“UBO”) register was established by the Act of 18 September 2017 on the prevention of money laundering and the financing of terrorism, and implemented the fourth European Anti-Money Laundering Directive. The general principles were further elaborated by royal decree. The text is ready, only the publication is delayed.

De Langhe Attorneys assists the family Carrette with the transfer of Westlease

After an era that almost spans half a century, the family Carrette has decided to hand over Westlease, the Belgian leasing company for small and medium sized companies, to Van Mossel Automotive Group, a prominent Dutch player on the leasing market with transnational ambitions. The collaboration between both companies shall undoubtedly strengthen their position on the Belgian market.

Another good reason to check the municipal tax

Provinces, cities and municipalities have tax autonomy that allows them to impose and collect taxes. It is up to the local authorities to decide on the criterion and the amount of the tax, but always in accordance with higher authorities.  And there’s the rub….

De Langhe Attorneys assists Demeyer Construct in their acquisition of Berle

After years of being a driving force behind the Berle family business, the Samyn family decided to entrust the business to Demeyer Construct. The synergy between Demeyer Construct and Berle will undoubtedly encourage further growth for both companies.  The cohesion of both companies will offer growth opportunities to the employees and will result in a broader and better service to customers. Thanks to the long-term commitment of the former managers, a stable transition seems to be guaranteed.

The split purchase of real estate targeted by the tax authorities

The media recently reported that in the future the tax authorities will closely monitor if the valuation of the usufruct – in case of a split purchase (usufruct / bare ownership) of real estate – is performed on the basis of correct criteria.

Tax implications if your sole proprietorship is discontinued

Anyone thinking of converting their sole proprietorship into a company in order to escape the progressive rates and benefit from the recently reduced rates should take into account a possible valuation of cessation gains.

De Langhe Attorney’s assists with the incorporation of the network company Belgian Meat Partners and the acquisition of group Derwa

Boosted by Euro Meat Group located in Mouscron, five independent business partners from the meat industry (pork and beef) have joined forces within the newly incorporated network company Belgian Meat Partners. Together with Groep De Brauwer (Group Danis, The Duke of Berkshire®), Piron Gotta, Q-Food and Sobemax, the network company’s aim consists in further focussing on a sustainable and ethical Belgian meat business.

Importance of notional interest deduction diminishes

The notional interest deduction, introduced in 2005, was intended to eliminate the fiscal distinction between equity and debt for companies and to strengthen the development of SMEs.

De Langhe Attorneys welcomes Werner Heyvaert and opens office in Brussels

1 March 2018, Werner Heyvaert will officially join the firm of De Langhe Attorneys. Werner is one of Belgium’s leading lawyers in the area of international taxation. Together with Managing Partner, Frank De Langhe and Partner Sara Burm, Werner will further develop the growth and strategy of the firm in the area of international tax law.

Recognised formation operator IAB
Belgian Institute of Accountants and Tax Consultants

We are pleased to announce that our firm De Langhe Attorneys has been officially recognised as formation operator by the Belgian Institute of Accountants and Tax Consultants (IAB) commencing 1 February 2018.

De Langhe Academy

De Langhe Attorneys organises seminars related to tax, commercial contracts and corporate law (M&A, acquisitions).

De Langhe Attorneys guides the entry of Vybros in GeoXYZ

Vybros is joining forces with CEO and founder Patrick Reyntjens, who was elected West Flemish young entrepreneur of the year in 2015. Together, they aim to support GeoXYZ further and assist in its expansion.

Nieuwpoort also has to refund taxes on second homes!

Nieuwpoort loses the battle over taxes on second homes. This tax, which has 15 different rates, infringes the principle of equal treatment. This was the ruling of the Court of First Instance of Brugge after twelve second-homes owners had submitted a petition.

Additional ammunition to challenge second home tax

In twelve different rulings, owners who challenged the second home tax in Nieuwpoort were proved right. The court ruled that the tax violates the principle of equality and is therefore null and void. What are the consequences?

First Aid in case of Unannounced Tax Audits

The tax authorities have various options for collecting tax information. One of them is particularly useful: an unannounced visit to the (company) premises allows the tax authorities to collect the information at source. Even though this power is subject to conditions, entrepreneurs should prepare themselves for such visits in order to avoid unpleasant surprises.

Reform of matrimonial property law: consequences for the family entrepreneur

At the end of 2017, the bill to reform the matrimonial property law was submitted to the Chamber. The bill contains a number of changes that will be important for entrepreneurs.

Capital gains on shares for corporate tax payers in 2018 – pitfalls and opportunities

Through the press and social media, we received the message that the sale of the shares of RSC Anderlecht by minority shareholders had to be concluded before 31 December 2017 for tax reasons. What exactly are the changes relating to capital gains on taxation that were implemented by the summer agreement?

Nice result for “Work 1 Hour for Life”!

On Monday 18 December, De Langhe Attorneys have worked “1 Hour for Life” in favour of the Belgian projects of SOS Children’s Villages as well as Somival.

Direct claim procedure by subcontractors changes as of 1 January 2018

As of 1 January 2018, if a subcontractor demands direct payment from a client of a construction project, the client can consign this payment and thus stay out of the discussion between subcontractor and main contractor. At the same time, the subcontractor can thus sooner attain certainty in the event of imminent bankruptcy of the main contractor.

De Langhe Attorneys supports SOS Children’s Villages and Somival during Music for Life “De Warmste Week”!

On Monday 18 December, De Langhe Attorneys will work one hour in favour of the Belgian projects of SOS Children’s Villages and Somival!

The multilateral instrument:
the most important tax treaty in the world?

On 7 June 2017, Belgium and 70 other countries signed the so-called multilateral instrument (MLI), which brings about an adjustment of the tax treaties of the signatories.

What does the new inheritance law mean for SME owners?

On 20 July 2017, the federal Parliament definitively approved the bill amending the inheritance law. As a result, most of the rules of the inheritance law – which date back to 1804 – have been modernised and adapted to current social needs. These new rules – which will apply to all estates that devolve as of 1 September 2018 – will have a major impact for entrepreneurs on estate plans that have already been performed and those yet to be implemented.

Young talent spotted on job fairs in Leuven and Ghent!

Last week we had a booth at the VRG student job fairs in Leuven and Ghent. VRG is the student “nation” for all law students and it stands for Vlaams Rechtsgenootschap (in English Flemish Law Society).

Implementing a capital reduction will require some tax calculations

The government wants to lower the corporate income tax rate from 33% to 29% as of 2018 and to 25% as of 2020. This change was much needed to safeguard competitiveness with our neighbouring countries. However, the Summer Agreement also contains a number of measures to compensate for the loss of tax revenue. One of these measures is the amendment of the rules on capital reduction.

Seminar Opportunities 2018 in light of the Summer Agreement

On Thursday 9 November 2017 we were pleased to welcome many interested guests to the lunch seminar in Ghent. On the agenda was the topic about which much has been discussed the last few months: the tax opportunities for 2018 in light of the Summer Agreement.

Extra tax credit for dividends of French origin? Yes, says Supreme Court, tax authorities refuse…

The ruling of the Belgian Supreme Court of 16 June 2017, gives individuals who receive dividends of French origin an extra bonus of 15,00% on the net dividend received.

Corporate Tax Lunch Seminar 9 November 2017

While you enjoy your lunch, we guide you through the tax opportunities for 2018 in light of the Summer Agreement. Two of our tax experts will present the new rules relating to rate reduction, reinvestment gains, capital decrease, capital gains on shares etc.

Two main topics of the day:

Tax on securities accounts – shedding more clarity

The Federal government has reached a consensus on the modalities relating to the tax on securities accounts announced in their recent
Summer Agreement.

Will your management company stay interesting after
1 January 2018?

Some legal evolutions in the field of tax and company law give reason to reflect on the future prospects of your management company, or the establishment thereof.