Belgium re-introduces an annual tax on securities accounts

On October 17, 2019, the annual tax on securities accounts (TCT) was abolished by the Belgian Constitutional Court. However, Belgium has now re-introduced the annual tax on securities accounts law with some modifications for 2021. In February 2021, the Belgian Parliament adopted the adjusted tax on securities accounts law ( Loi portant introduction d'une taxe annuelle sur les comptes-titres ) applicable from February 26, 2021, with the first reference period ending on September 30, 2021.

What does this mean for Belgian intermediaries and account holders?

In general, a Belgian intermediary will be in charge of reporting and paying the tax on securities account for the account holder. If no Belgian intermediary is involved, tax advisors currently assume that the reporting and payment obligations fall directly back to the account holder. The account holder must file the declaration together with the annual personal income tax return.

The new law follows the general rules of the original law:

• Reference period: October 1 - September 30
• Calculation of taxable base as average of four reference points throughout the regular reference period
• The reference period can be shortened, in case of e.g., the closing of an account.
• Tax rate: 0.15%

At the same time, with the modified law, the legislator is attempting to eliminate the parts that led to the abolition of the law in 2019 and is now extending the scope:

• The range of the instruments included in the calculation of the taxable base is extended. All instruments held in a securities account, including derivatives and cash, are targeted by the tax.
• The threshold is raised to EUR 1,000,000 per account without regards to the number of accountholders.
• An anti-abuse provision is introduced in 2020, effective as of October 30, 2020, to hinder tax avoidance.
• Tax amount is limited to 10% of the difference between the taxable base and the threshold of EUR 1,000,000.

With the adjustment of the annual tax on securities accounts law by the Belgian tax legislator, it can be assumed that the law will continue to exist in the long-term.  

Our EasyTax solution enables banks to provide their clients with the necessary information needed for filing their tax declarations. To meet the requirements imposed by the adjusted annual tax on securities accounts law, we will adapt and relaunch our EasyTax BE-TCT module. The module will be available on time for the first reference period ending September 30, 2021.

Contact us or request a demo to receive more information about our EasyTax BE-TCT module.