Skip to main content
Back to homepage

Dividend

Dividend per share
Dividend withholding tax note

Belgian withholding tax on dividends distributed by D’Ieteren Group SA

The contents of this document is for general guidance only and does not constitute the provision of investment, legal or tax advice. The materials contained herein are purely for illustrative purposes, and do not take into account an individual’s or entity’s specific circumstances or applicable governing law, which may vary from jurisdiction to jurisdiction and be subject to change.

Please consult your tax advisor with respect to the Belgian withholding tax treatment of dividends distributed by D’Ieteren Group SA, the assessment of any reduced withholding tax rates or exemptions available to your situation and the formalities applying thereto.

Belgian withholding tax rules

The gross amount of dividends distributed by D’Ieteren Group SA is, in principle, subject to Belgian dividend withholding tax (WHT) at the flat rate of 30%. Investors therefore receive the net amount of the dividends reduced by the WHT levied at source.

As a rule, Belgian resident private individuals are subject to the 30% WHT as a final tax (exemption can be claimed in their tax returns for the first EUR 833,00 dividends).

However, subject to conditions and formalities requirements, reduced WHT rates or WHT exemptions may be available to other investors under Belgian domestic tax law or relevant Double Tax Treaties (DTT). We therefore recommend reaching out to your tax advisor or financial institution to assess whether you are eligible to reclaim fully or partially the Belgian WHT levied.

For instance, a reduced WHT rate or a full exemption could be claimed under the following circumstances and conditions:

  • Reduced rates or exemption available under the DTT entered into between Belgium and other jurisdictions:
    • For dividends distributed by D’Ieteren Group SA to a foreign investor resident of the other state (i) who is the beneficial owner of the dividends, (ii) who does not hold the shares through a permanent establishment in Belgium, and (iii) who is entitled to claim benefits under the DTT between Belgium and that other state, the WHT rate could be reduced from 30% to a lower rate foreseen by the DTT (usually 15% or 10%). A full exemption could sometimes apply for qualifying investors such as pension funds and corporate shareholders who hold a certain minimum stake in the share capital or voting rights of D’Ieteren Group SA.
  • Exemption for corporate shareholders holding significant stake in D’Ieteren Group SA:
    • An exemption from Belgian WHT may be available for (a) qualifying shareholders holding a participation of at least 10% in the capital of D’Ieteren Group SA or (b) qualifying non-resident shareholders holding a participation of less than 10% but with an acquisition value of at least EUR 2.5 mio. The participation should in both cases be held for more than one year. These WHT exemptions are subject to a number of strict conditions and formalities.
  • Exemption for non-resident pension funds:
    • Belgian domestic law provides for an exemption from WHT for dividends distributed to qualifying non-resident pension funds provided certain conditions are met. The pension funds will need to fulfill an attestation confirming that they meet the relevant requirements.

In all cases, we advise our shareholders to seek professional tax advice or to contact their financial institution to assess their eligibility to any WHT reduction or exemption and to assist them with the WHT reclaim formalities.

Withholding tax reduction or exemption formalities

  • Reimbursement request
    • Investors who are entitled to a reduced rate or an exemption may submit a reimbursement request of the Belgian WHT to the Belgian tax authorities. The request must be filed as soon as possible and in any case within five years starting from the first of January of the year during which the withholding tax was paid to the Belgian Treasury.
    • The relevant forms can be found here : Reimbursement of the withholding tax on movable property | FPS Finance (belgium.be)
    • The claims must be submitted by letter to the following address: Centre PME Matières Spécifiques - Team 6 - Bd du Jardin Botanique 50, boîte 3429 - B-1000 Bruxelles
    • Any questions with respect to the formalities and the required attachments can be raised to the Belgian tax authorities using the following: E-mail foreigners.team6@minfin.fed.be - Telephone +32 (0)2 572 57 57 (code 17486)
  • Application at source

In some cases, a reduced WHT rate or an exemption can be directly applied by D’Ieteren Group SA at source. This requires that the investors fulfill formalities before the dividend distribution within specific deadlines.

Shareholders need to seek instructions from their broker or financial institution to advise them with respect to these procedures.