The main advantages of a Belgian "Institution for Investment in Receivables" are the following :
- mortgage loans and consumer loans can be transferred to this Institution without any important costs or burdensome formalities; - the virtual absence of corporate income tax in the hands of the Institution organized in the form of a company; - the unconditional application of the lower rate of withholding tax (13.39%) on dividends distributed by the Institution organized in the form of a company; - the absence of withholding tax on any interest payments received by the Institution organized in the form of a company (According to a Bill of law, this will also apply to interest paid to an Institution organized in the form of a fund. The Institution will, according to the Bill of law, have to levy a withholding tax of 13.39 % on income distributed to the holders of its participation rights insofar as such income has its origin in moveable income; we will report hereon in a later edition).The main disadvantages of a Belgian "Institution for Investment in Receivables" can be summarized as follows :
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
- - the control by the Banking and Finance Commission;
- - the obligation to offer at least part of the securities to
- the public (There exists a Bill of law which purports to make
- a 100 % private placement possible for an Institution; we will
- report hereon in a later edition).
For further information contact Jan Van Lancker on + 32.2. 517.94.31.
For further information contact Vincent Macq on + 32.2. 517.94.47.