Growing wealth requires more than a sound investment. We provide integrated advice on investment taxation, private equity, funds, financial structures, and the relevant regulatory framework.
DBI Funds
Understanding DBI funds:
A DBI investment structure allows investors to invest via Belgian companies, whether or not UCIs, whereby dividends and realized capital gains on shares may, under certain conditions, be exempt from Belgian corporate income tax. These structures provide an interesting framework for tax-efficient wealth accumulation within a Belgian company.
For the DBI regime of DBI SICAVs (SICAV stands for Investment Company with Variable Capital), institutional SICAVs and non-regulated investment companies, ruling requests have successfully been obtained.
Our approach?
We thoroughly analyse existing investment structures and identify optimization opportunities. In addition, we assist the financial intermediary, the management company, the “family office” or wealthy families themselves in setting up new structures. Where appropriate, legal certainty is obtained through an advance ruling from the Ruling Commission.
Our expertise?
The Banking and Finance Team has experience in applying for advance decisions for regulated DBI SICAVs and non-regulated investment companies. These rulings generally include confirmation of the minimum distribution requirement of 90 percent of the SICAV’s net income, allocation rules to distinguish between qualifying and non-qualifying income, the treatment of stock exchange gains for DBI purposes, the processing of participation in the result, confirmation that a specific Depositary Receipt can be equated with the underlying share for tax purposes, advice on the concrete calculation of the distributable dividend, reorganisations within or between DBI SICAVs and rulings for the establishment of an institutional DBI SICAV.
In practice? Illustrative cases:
CASE
A fund wishing to invest in a successful company was confronted with the fact that it was only listed on a less accessible foreign stock exchange. Instead of investing directly in the share, it invested in a certificate of that share listed on a more accessible exchange.
Tuerlinckx Tax Lawyers prepared a ruling request in this context, whereby the ruling authority confirmed that the certificate can be equated with the underlying share of which the income qualifies as “good DBI income”.
CASE
A fund had several statutorily segregated compartments, each investing in a separate region. Given the evolution towards a more global investment strategy, a merger of two compartments was appropriate.
The Tuerlinckx Tax Lawyers team assisted in this restructuring and obtained a tax ruling ensuring the necessary fiscal continuity. Neither the fund nor the investor was confronted with additional taxation as a result of the merger.
Schedule a meeting?
Are you facing a similar issue or do you have questions following this case? We’d be glad to assist you. Don’t hesitate to get in touch with the team: TeamBanking&Finance@Tuerlinckx.eu
“Tax is everywhere”
“Finance is structured. Tax decides how”.
Wealth should generate returns. In a landscape of complex tax and regulatory obligations, we guide you in optimizing your investment structure and managing the tax impact.
Advisory
Tax Disputes
The tax landscape for investment products has undergone significant changes in recent years. The tightening of withholding tax rules, amendments to the Dividend Received Deduction (DRD) regime, the new capital gains tax, the annual securities accounts tax, as well as the application of stock exchange tax to transactions carried out through foreign accounts, the increasingly cross-border environment in which the sector operates, and the proliferation of anti-abuse measures such as the Cayman Tax, have created an unprecedented level of complexity.
In addition, investment insurance products offer tax opportunities, as does the use of feeder structures for investments in private equity funds. These solutions are complemented by a risk analysis assessing their viability in the event of a dispute with the tax authorities or before the courts.
We provide well-founded tax advice with practical and workable solutions, drawing on 25 years of hands-on experience in the financial sector and the funds industry.
Tuerlinckx Tax Lawyers has extensive practical experience in assisting clients during tax audits and disputes with the tax authorities, both at the administrative stage and before the courts.
Today, the banking and finance sector is characterized by cross-border and often highly complex structures, with funds and private equity entities frequently benefiting from specific tax regimes. As a result, the tax authorities scrutinize this sector closely and often with caution.
We specialize in conducting tax litigation and dispute resolution proceedings, both before the tax authorities and in court. We thoroughly analyse the limits of the tax authorities’ investigative and assessment powers and critically assess which claims can be sustained from both a legal and factual perspective.
Tax Returns for Assets & Income
Tax Rulings
We assist high-net-worth individuals and legal entities with the filing of tax returns, stock exchange tax declarations, and annual securities accounts tax obligations relating to their foreign accounts.
We also provide the necessary support to manage and optimize the reporting of investment income and capital gains on financial assets.
Where assets have not been subject to the correct tax treatment in the past, our team of experts can assess whether a tax regularization is possible and will determine the most appropriate approach.
We have extensive experience in obtaining advance tax rulings for banking products, traditional and private equity funds (including, where relevant, carried interest structures), as well as investment insurance products.
Such a “product ruling” not only provides protection for the Belgian intermediary or issuer regarding withholding obligations, reporting requirements, and potential information exchange obligations, but also offers investors greater legal certainty and peace of mind regarding their own tax obligations.
Advisory
The tax landscape for investment products has undergone significant changes in recent years. The tightening of withholding tax rules, amendments to the Dividend Received Deduction (DRD) regime, the new capital gains tax, the annual securities accounts tax, as well as the application of stock exchange tax to transactions carried out through foreign accounts, the increasingly cross-border environment in which the sector operates, and the proliferation of anti-abuse measures such as the Cayman Tax, have created an unprecedented level of complexity.
In addition, investment insurance products offer tax opportunities, as does the use of feeder structures for investments in private equity funds. These solutions are complemented by a risk analysis assessing their viability in the event of a dispute with the tax authorities or before the courts.
We provide well-founded tax advice with practical and workable solutions, drawing on 25 years of hands-on experience in the financial sector and the funds industry.
Tax Disputes
Tuerlinckx Tax Lawyers has extensive practical experience in assisting clients during tax audits and disputes with the tax authorities, both at the administrative stage and before the courts.
Today, the banking and finance sector is characterized by cross-border and often highly complex structures, with funds and private equity entities frequently benefiting from specific tax regimes. As a result, the tax authorities scrutinize this sector closely and often with caution.
We specialize in conducting tax litigation and dispute resolution proceedings, both before the tax authorities and in court. We thoroughly analyse the limits of the tax authorities’ investigative and assessment powers and critically assess which claims can be sustained from both a legal and factual perspective.
In our interactions with the authorities, we adopt a professional and modern communication style, with a strong focus on strategic positioning and robust case preparation. Through targeted argumentation and a deep understanding of tax controversy practice, we build a strong and effective defence for our clients.
Tax Returns Covering All Relevant Assets and Income
We assist high-net-worth individuals and legal entities with the filing of tax returns, stock exchange tax declarations, and annual securities accounts tax obligations relating to their foreign accounts.
We also provide the necessary support to manage and optimize the reporting of investment income and capital gains on financial assets.
Where assets have not been subject to the correct tax treatment in the past, our team of experts can assess whether a tax regularization is possible and will determine the most appropriate approach.
Tax Rulings
We have extensive experience in obtaining advance tax rulings for banking products, traditional and private equity funds (including, where relevant, carried interest structures), as well as investment insurance products.
Such a “product ruling” not only provides protection for the Belgian intermediary or issuer regarding withholding obligations, reporting requirements, and potential information exchange obligations, but also offers investors greater legal certainty and peace of mind regarding their own tax obligations.
