Written by Birdee | Apr 9, 2018 4:00:00 AM
At the beginning of 2018, the Belgian government adopted a law introducing a new tax of 0.15% per year on securities accounts. As its name suggests, this new tax applies to securities accounts and therefore also to Birdee portfolios.
What is the tax on securities accounts? A securities account is an account that allows securities to be held (shares, bonds, certificates, investment funds of the SICAV or FCP type, warrants,
ETFs). This account, linked to a cash current account, can be opened in a bank or with a manager and allows you to diversify your assets and aim for higher returns than more "traditional" investments. As soon as the balance of all your securities accounts reaches or exceeds €500,000, a tax of 0.15% becomes applicable from the first euro.
Who is liable for this tax? This tax concerns individuals who hold, on one or more securities accounts, financial instruments whose value reaches or exceeds €500,000. Belgian tax residents as well as non-residents who have securities accounts in a Belgian financial institution for an amount greater than or equal to € 500,000 are concerned by this tax. It is not possible to avoid the tax by opening several accounts or placing money abroad. Investors will have to mention in their tax return whether they have one or more Belgian or foreign securities accounts. The tax is payable at the end of 2018. Each bank or manager concerned will automatically levy this tax. This is a deduction in discharge. In practice, financial intermediaries will retain the valuation of the securities account at the end of each month and the tax will be calculated on the average of these valuations. It will be the responsibility of each individual to enter all securities accounts held in his or her individual tax return.
Your Birdee portfolio Within the framework of your Birdee portfolios, and if you have more than 500.000€, we will calculate your monthly average values and the 0.15% annual withdrawal. The details of the calculation will appear in your annual tax reporting directly on the application. We will also notify you in due course of the relevant boxes of the tax return. Even if you do not have 500.000 € invested in Birdee, you can ask us to calculate and pay this tax on the amounts deposited at Birdee.