Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 6/19/2012

Belgium - “Division tax” on partition of joint tenancy  

June 19: The Flemish government increased the “division tax”—i.e, the tax that is imposed when joint tenants partition the property to end their joint tenancy—from 1% to 2.5%.

The division tax may be imposed on:


  • Couples who have purchased property together, and subsequently, one partner seeks to acquire the other partner’s share—such as during a divorce
  • Persons who have made a joint purchase of real estate and seek to end their joint tenancy—such as a business manager who makes a purchase via a joint tenancy with the company or parents who make a purchase of property jointly with their children
  • Siblings who have inherited a parcel of real property and seek to partition the joint tenancy

Joint tenants are liable for the division tax only if their rights to the real property are of the same legal nature. In other words, the joint owners must have full title to the real property in question, or they all have only the usufruct of a piece of real property. There cannot be joint ownership between an owner who holds full title and a usufructuary of the same piece of real property.

Exemptions available in divorce

Individuals who are subject to the division tax due to a divorce are entitled to a partial exemption—in some instances, an amount that depends on the number of children from the marriage.


While the division tax is 2.5% for divorcing individuals, they are allowed to claim relief from the division tax of up to the first €50,000, and this exemption amount increases by €20,000 for each child from the couple’s marriage.


Read this June 2012 report prepared by the KPMG member firm in Belgium: Division tax raised to 2.5%




©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to go-fmtaxnewsflash@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now

Contact us