Debt securities - rates, eligibility, availability of relief etc. - Belgium
Withholding Tax
Debt securities integrated into the X/N system of the National Bank of Belgium (NBB)
| Standard rate of withholding tax: | 0% | Holding requirements / restrictions: | Yes |
The holding of NBB-eligible debt securities in Clearstream Banking is restricted to eligible tax-exempt beneficial owners (see "Types of beneficial owner" under General information).
Holdings of such securities are exempt from taxation.
Belgian debt securities deposited with Euroclear Belgium (EBE SA/NV)
| Standard rate of withholding tax: | 30% | Holding requirements / restrictions: | No |
As of 1 January 2017, the standard rates of withholding tax on interest on all Belgian debt securities deposited with Euroclear Belgium (EBE SA/NV) is 30%.
Before 1 January 2016, the applicable rates were as follows:
- For bonds issued on or after 1 March 1990:
- 27% on interest paid from 1 January 2016 to 31 December 2016;
- 25% on interest paid from 1 January 2013 to 31 December 2015;
- 21% on interest paid from 1 January 2012 to 31 December 2012;
- 15% on interest paid before 1 January 2012.
- For bonds issued before 1 March 1990:
- 27% on interest paid from 1 January 2016 to 31 December 2016;
- 25% on interest paid before 1 January 2016.
Eligible beneficial owners are, upon submission of the required certification, entitled to a quick/standard refund.
Foreign debt securities deposited in Belgium
There is no Belgian tax withheld at source on interest payments made on foreign securities deposited in Belgium.
The exemption is granted by the Belgian Law “Loi portant des dispositions fiscales diverses en matière de revenus mobiliers” of 25 April 2006, published on 28 April 2006, which implements Royal Decree C.I.R. 92 article 261 paragraphs 1, 2.c and 4.
As a consequence, income on all foreign instruments deposited in Belgium can be paid to foreign investors without any deduction of Belgian withholding tax. This applies to all Clearstream Banking foreign portfolios in Belgium, regardless of the fiscal status of the underlying customer or of the final beneficial owners.
No action is required by the customer to ensure that no Belgian tax is applied.
Note: Foreign withholding tax may, if applicable, be deducted in the country of the issuer. It is the responsibility of beneficial owners that are Belgian residents to comply, through their annual fiscal declaration, with all legal and regulatory requirements imposed by Belgian law in respect of withholding tax. Neither Clearstream Banking nor its local depository has any direct or indirect liabilities towards the Belgian Tax Authorities in this regard.
Availability of relief
The availability for tax relief varies according to the Belgian security type, as follows.
Click on the image in each case to view a diagram showing the availability of relief at source and/or reclaim of withholding tax on income from Belgian debt securities.
Debt securities integrated into the X/N system of the National Bank of Belgium (NBB)
NBB-eligible debt securities may only be held through Clearstream Banking by beneficial owners that qualify as tax-exempt (see "Market specifics" under General information).
Upon submission of the One-Time Certificate for Belgian Debt Securities integrated into the NBB X/N System before the first trade in NBB-eligible securities settled in Clearstream Banking, automatic exemption at source is applied on the entire customer entitlement for all interest payments. No further action is required from customers in order to receive gross payments.
In these circumstances, relief at source and reclaim of withholding tax do not apply to interest from NBB-eligible debt securities.
Belgian debt securities deposited with Euroclear Belgium (EBE SA/NV)
Relief at source from withholding tax is not officially granted by Belgian legislation and it is therefore not available through Clearstream Banking.
Beneficial owners that are residents of Double Taxation Treaty (DTT) countries or that are supranational or international organisations can reclaim withholding tax on interest from Belgian debt securities using the quick/standard refund procedures.
Foreign debt securities deposited in Belgium
There is no Belgian tax withheld at source on interest payments made on foreign securities deposited in Belgium.
The exemption is granted by Belgian law and no action is required by the customer to ensure that no Belgian tax is applied.
Note: Foreign withholding tax, if applicable, may be deducted in the country of the issuer.