New solidarity tax on security accounts
A new tax on securities accounts is on its way. What does this mean for you?
On November 2, 2020, the Council of Ministers approved a preliminary draft law introducing an annual tax on securities accounts in the Code of various duties and taxes (further mentioned as “Code”). The preliminary draft is now being submitted to the Council of State for its opinion, so that it can be submitted to Parliament as soon as possible.
The tax implies an annual tax on the holding of a securities account. The tax is calculated on the average value of the taxable financial instruments held via that securities account.
An annual tax of 0,15% is due if the average value of the taxable financial instruments exceeds EUR 1 million. The amount of the tax is limited to 10% of the difference between the taxable base and the threshold amount of EUR 1 million.
In addition, the preliminary design contains a general anti-abuse provision that applies to the entire Code. The following situations contain a refutable presumption of tax avoidance, whereby the tax payer can provide proof to the contrary:
- the splitting of a securities account where securities are transferred to one or more accounts with the same or another financial intermediary with the aim of avoiding that the total value of the securities in one account exceeds EUR 1 million;
- the opening of securities accounts where securities are spread between accounts with the same or another financial intermediary with the aim of avoiding that the total value of the securities on one account exceeds EUR 1 million;
- the conversion of registered shares, bonds and other taxable financial instruments so that they are no longer held in a securities account, with the aim of escaping the tax;
- the placing of a securities account subject to the tax in a foreign legal entity that transfers the securities to a foreign securities account, with the intention of avoiding the tax
- placing a securities account subject to the tax in a fund whose units are placed in registered form, with a view to avoiding the tax.
This anti-abuse provision applies retroactively from October 30, 2020.