A bill to combat tax fraud and tax avoidance regarding withholding tax was published in the Official Gazette of 22 January 2019. The bill focuses on combating withholding tax evasion and avoidance, and facilitating the recovery of withholding tax in the event of an unjustified exemption or refund.
The bill covers income from movable property and capital, securities and compensation for missing coupons or missing lots pertaining to financial instruments that are the subject of an agreement constituting a valuable security or loan. In addition, it also covers the foreign dividends which have been collected or obtained by pension funds without the use of an intermediary established in Belgium, if the sole object consists exclusively or mainly of the management and raising of funds with the aim of paying out statutory or supplementary pensions.
The bill contained the following measures:
The bill will have an important impact on WHT relief at source and refunds. Not only for the taxpayers concerned but also for the movable income debtors and financial intermediaries (in their capacity of withholding agents).
Source: Belgian Government
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