Tax optimisation.

Win-win loan

By offering the win-win loan, the Flemish government wants to encourage private individuals to financially support small and medium-sized enterprises. When you as a friend, relative or acquaintance lend up to €50.000 to a Flemish company during a period of eight years, you will get a tax reduction each year. You are sure to get your money back in case the borrower cannot repay it. A company can get a win-win loan up to an amount of €200.000 with a maximum of €50,000 per lender.

There is a 2.5% tax advantage a year based on the lent capital.

Tax Shelter

By offering the tax shelter, the Belgian Federal government aims to fiscally motivate private persons to provide start-ups with risk capital (within 4 years after founding the company). This private party will have the righ to a personal income tax reduction of 30 to 45%, in case the mentioned amount is being invested into the capital of starting enterprises. This may be both a direct investment or an indirect investment through a crowdfunding platform or starters fund.

This means a company can raise up to €250.000 during its existence. The investor is obliged to own the shares for a period of at least 4 years and is only allowed to invest up to €100.000 through the tax shelter-system.

A natural or private person who secures a loan (debt security) as of 1 august 2015 in order to finance a start-up's crowdfunding campaign (credit crowdfunding), will enjoy a withholindg tax exemption on loan interests to the amount of the first tranche of €9.965 per year (€15.000 for fiscal year 2016 because of indexation).

The creditor (investor) must secure this minimum 4-year loan outside of his of her profession on a recognised crowdfunding platform.

Read more about the Tax shelter terms and conditions. (Dutch)

 

Dual legacies

The dual legacies is a legal way to bequeath a part of your property to an association without disadvantaging your heirs. This method is gaining in importance as the heirs have to pay significantly less inheritance rights. Thus, you are doing both your heirs and an association a huge favour!

The dual legacies could be described as a provision in your will where you designate a special and a general legatee. In this case, the general legatee is the association. She is instructed to take charge of the inheritance rights of the special legatee and potentially the costs of the liquidation of the estate.

The great advantage of the dual legacies is that the association must pay the inheritance rights instead of your cousin for example. Since an association has to pay less inheritance rights than a private individual (only 8.8%), the tax authority is the only party who does not benefit from it.

 

Donations to registered charities

Did you know that you can obtain a tax advantage by supporting a charity? When you deposit at least €30 to the same registered institution each calendar year, you automatically get a tax certificate of your gift. This gives you a tax advantage at your highest tax rate (max. 50% with municipal taxes). In practice, most Belgians recover annually between 40% and 50% of their gift. Yet there are limits to your generosity. In order to obtain a tax benefit, your donation cannot exceed 10% of your total net income. The maximum amount you can donate is €346.100.

Which institutions are qualified?

  • Institutions listed in the law.
    Famous examples are the Red Cross, the King Baudouin Foundation, the Centre for Fine Arts, sheltered workshops, public centres for social work and the state museums.

  • Registered institutions.
    Registered institutions have to follow a recognition procedure and are only recognised for a limited period. They are rather small. Famous names are Plan België, Greenpeace, Povorello, Europalia, … Click here to see the full list of the registered institutions.

  • Large relief operations.
    When you support a large relief operation, you also benefit from a tax advantage. Think of the large-scale operation that was set up early 2012 after the devastating earthquake in Haiti. Did you support this action? If so, you will receive a receipt from the Belgian Consortium for Emergency Situations.

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