In 1982 Belgium introduced a special tax regime for coordination centers that inspired similar measures in France, Germany, Luxembourg and the Netherlands. At the time the European Commission approved the coordination center tax regime. However, times change and in 2003 the European Commission decided that the coordination center tax regime was incompatible with EU state aid rules. Belgium agreed to modify the coordination center regime and phase it out by 2010.
Some 88 coordination centers are to loose their status by the end of this year and in order to give them plenty of time to adopt their structure to the new tax regime, the Belgian Parliament has adopted on 22 June 2005 a law that must make investments in equity significantly more attractive. It introduces a valid alternative and contrary to the coordination center regime, the new regime is creative and simple. (Read the article …)
At its meeting on June 6 and 7, the EU Council of Economic and Finance Ministers confirmed that all EU member states have transposed the EU savings tax directive (2003/48/EC) into their domestic laws.1 The resulting exchange-of-information system became effective in the European Union on July 1.
Belgium transposed the directive in its law of May 17, 2004,2 and the legislation entered into force there on July 1. However, much remains to be done. (Read the article …)
In a July 13 decision Belgium’s Court of Arbitration has asked the European Court of Justice for a preliminary ruling concerning the compatibility of the extension of the EU money-laundering directive to lawyers with the fundamental right to a fair trial.
The Law of January 12, 2004 implemented Directive 2001/97/EC amending Council Directive 91/308/EEC on preventing the use of the financial system to launder money. In practice it extended the provisions of the Law of January 11, 1993, to lawyers when they assist their clients in the planning or execution of transactions that involve large amounts of cash. (More …)
Belgium’s House of Representatives on June 2 adopted a bill that would make investments in equity significantly more attractive. The Senate is not expected to ask to reexamine the bill, so it is possible that King Albert could sign it into law in the coming weeks, well in time for its proposed entry into force.
For most companies, that is January 1, 2006. The timing is perfect, as the Belgian coordination center regime is coming to an end over the next couple of years. However, unlike the coordination center regime, the measure approved on June 2 is creative and simple. The new regime would make Belgian companies even more attractive vehicles to finance multinational groups. (More …)