New Federal Government Agreement: What impact for you as an investor?

The new government agreement led by Bart De Wever brings several significant changes for investors—and not all of them pleasant. In this article, we discuss the adjustments that could impact your investment portfolio. We focus on the simplification of the tax on stock exchange transactions (TOB), the annual tax on securities accounts, adjustments for investment companies under the DBI regime (Definitively Taxed Income), and the new capital gains tax on financial instruments.

 

 

Adjustments to the Tax on Stock Exchange Transactions

The tax on stock exchange transactions (TOB) is a levy calculated on the buying and selling of financial instruments. It applies as a percentage of the total price paid or received for executed orders. Current rates are 0.12% for bonds, 0.35% for stocks, and 1.32% for investment funds (only upon sale and for capitalizing funds).

The government agreement states that the TOB will be modernized and simplified. The new Finance Minister, Jan Jambon, is expected to propose harmonizing rates across different categories of financial instruments. Today, the TOB is a patchwork of varying tax rates and exceptions. The tax is withheld at the source by your Belgian custodian bank and is final, meaning you don’t need to declare it separately in your tax return.

 

Annual Tax on Securities Accounts

The new agreement also calls for a review of the annual tax on securities accounts. The government will explore ways to close loopholes, as previously recommended by the Court of Audit. In a recent report, the Court noted that investors often exploit workarounds to avoid this tax, such as converting dematerialized securities to registered securities (which are exempt to protect family businesses) or spreading assets across multiple accounts to stay below the taxable threshold of €1 million. Other tactics include creating “zero-value” positions by selling securities just before the reference date.

 

Adjustments for Investment Companies: /RDT Regime

Significant changes are coming to the DBI/RDT regime for investment companies. This system allows tax-free profit distributions from subsidiaries to parent companies if the income has already been taxed at the source. To qualify for the DBI/RDT deduction, the following three conditions must be met:

1. Holding Period Requirement: The parent company must have held the shares in the subsidiary continuously for at least one year.
2. Taxation Requirement: The subsidiary must be taxed under a normal tax regime.
3. Participation Requirement: The parent company must hold at least 10% of the subsidiary’s shares or have an investment of at least €2.5 million.

The participation requirement of 10% remains unchanged, but the threshold of €2.5 million is increased to €4 million. However, this tightening does not apply to small and medium-sized enterprises. An additional condition has been introduced: the participation must qualify as a financial fixed asset. This means that the parent company must aim for a lasting relationship with the subsidiary in which it invests and must not regard it as an investment.

Furthermore, a 5% levy will be imposed on capital gains upon exit from DBI funds. This means that investing companies must account for an additional tax when realizing capital gains on their DBI investments. However, the abolition of DBI funds is not under consideration. As a result, it remains possible to invest in a fiscally advantageous manner within the company.

 

New: The "Solidarity Contribution"

One of the most striking changes is the introduction of a 10% “solidarity contribution” (read: capital gains tax) on future realized gains from financial assets, including cryptocurrencies. Historical gains are exempt, and losses can be deducted within the same year (but not carried forward). A €10,000 exemption protects small investors, while significant holdings (20% or more) benefit from a €1 million exemption. Gains between €1 million and €2.5 million will be taxed at 1.25%, gains between €2.5 million and €5 million at 2.5%, and gains between €5 million and €10 million at 5%. Gains above €10 million face a 10% rate. For the calculation of capital gains, a ‘zero point’ will be established, ensuring that historical capital gains remain unaffected. Since government revenues from this measure are only included in the budget tables from 2026 onward, it seems likely that the introduction of the zero point will not take place before 2025.

Here too, it remains to be seen how the implementation of this tax will take shape. It is expected that the solidarity contribution on dematerialized securities that are part of an investment portfolio will be withheld by the custodian bank.

 

Your Partner in a Changing Fiscal Landscape

The new tax measures bring significant changes for investors and companies. Our wealth managers closely monitor these developments and are ready to assist you. Whether it concerns the impact of the capital gains tax, adjustments to the DBI system, or the harmonization of the stock exchange transaction tax, we are here to guide you in making informed decisions and building a personalized investment portfolio that aligns with your financial goals.

Do not hesitate to contact your wealth manager for a personal discussion on what these reforms mean for you.