IMPORTANT AMENDMENT EXEMPTION FROM WITHHOLDING TAX ON DIVIDENDS OF APPROVED COOPERATIVE COMPANIES
As of 2018, there is a new rule regarding the exemption from withholding tax on dividends paid by approved cooperative companies with a social purpose. The specific exception from withholding tax on your first tranche of €190 is no longer applicable. Our former exemption is now integrated into the new general exemption, which is introduced for share dividends.
The new general exemption means that the first tranche of €640 dividends is free of withholding tax. Only the dividends from the shares qualify for this exemption, both Belgian and foreign shares. (Shares) funds and other types of investments are not eligible. Shares of recognised cooperative companies, such as Incofin do qualify. This rule applies to dividends received as from 2018. This exemption rule only applies to natural persons.
Another change is that the exemption is no longer applied at source, but via the personal tax return. From now on, withholding tax will be deducted from the total amount of dividends, and the exemption will only be set off and recovered in your next tax return.
The tax authorities have yet to determine and implement the schedules which will be used in the tax return.
We therefore lose our specific exemption, for cooperative companies such as Incofin, on the first tranche of €190 dividends, but from now on we can benefit from the new general exemption of €640.