Status
In force
Introduced
1913
Legislative reference
Article 120 and further of the Belgian Code of Various Duties and Taxes.
In scope instruments
All types of public securities.
Taxable event (transaction)
- All secondary market transactions concluded or executed through a professional Belgian intermediary.
- Certain redemptions by Société d'Investissement À Capital Variable (SICAVs).
Territorial connection for liability – condition for taxability is:
Residence of issuer?
N/A
Location of transaction (e.g. traded on local stock exchange)?
The transaction must be concluded or executed in Belgium.
Location of party (e.g. at least one party to the transaction is resident)?
At least one party must be a Belgium resident otherwise the transaction is exempt (see exemptions).
Residence of financial intermediary?
A Belgian intermediary acting in the course of its business must intervene in the deal.
Other relevant conditions for taxability
The transaction must relate to public funds (which refers to all marketable securities by nature traded on a known stock exchange).
Exempt transactions
- Primary market transactions are not included.
- There are several specific exemptions in particular transactions made by non-resident taxpayers for their own account.
Person responsible for collecting/remitting tax
The Belgian professional intermediary (see above).
Liable persons
The Belgian professional intermediary (see above).
Person who in practice bears the tax
The buyer and the seller.
How enforced
Liable persons are required to file a return and to pay the FTT by the end of the month following the one when the transaction(s) occurred. They are required to keep and, make available to, information for the tax authorities the relevant data for six years.
Penalties in case of failure to file/pay
Interest will be due in the case of late payment. A penalty will be due in the absence of FTT return and when relevant data is missing.
Tax base
- Acquisitions/purchases: sums paid by the purchaser after deduction of the brokerage commission.
- Sales: sums received by the seller or assignor without deducting the brokerage commission.
- Certain redemptions by SICAV's: i.e. the net asset value.
Tax rate(s)
- 0.09 percent (up to max 650 euro (EUR) per transaction) for distributing shares of investment companies, certificates of certain contractual investment funds, bonds of public debt, nominative or bearer bonds etc.
- 0.65 percent (up to max EUR975 per transaction) for certain accumulations of SICAV's (between 1 August 2012 and 31 December 2014: 1 percent, up to maximum EUR1500).
- 0.22 percent (up to max EUR650 per transaction) for any other securities (between 1 August 2012 and 31 December 2014: 0.25 percent, up to maximum EUR740).
Cap/Floor/Threshold/Allowance
See tax rates
Other comments
N/A