Belgium plans incentives for European schemes
BELGIUM - The Belgian government wants to attract large European pension funds through exemption from VAT and lower corporation tax, the country's prime minister has said.
Didier Seeuws, spokesman for Prime Minister Guy Verhofstadt, announced in an interview with Belgian newspaper De Tijd the government's plans to launch new fiscal regimes to attract foreign investors such as pension funds and other foreign corporations.
Verhofstadt aims at pan-European pension funds. When they move to Belgium the funds will be exempt from almost all taxes, with corporation tax being reduced significantly.
Next to this large international groups who execute their internal financial movements in Belgium will be exempt from advance levy on money that comes from abroad.
The Dutch market, which houses relatively many pension funds, is expected to be the first target.
Earlier this year Belgium already introduced the notional interest deduction for corporation tax, which allows firms to fiscally deduct a fictitious interest on the own capital.