Distribution of real estate via dividend payment in kind has recently become possible without application of the sales tax!
Until recently, the Flemish Tax Administration argued that the distribution of real estate from a company was subject to the sales tax (12%) when this distribution was charged to the available reserves. Indeed, it argued that this distribution constituted a distribution of dividends in kind and therefore a transfer for consideration. Recently, the Flemish Tax Administration has completely changed its approach, allowing this distribution to be made in certain cases in a much more tax-efficient way, i.e. without application of the sales tax.
Until recently, the Flemish Tax Administration argued that the distribution of real estate from a company was subject to the sales tax (12%) when this distribut…
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