1. Cooperative company

You invest in a share of a cooperative company with social purpose. You can either subscribe to full shares with a nominal value of 2,604 EUR or to 1/20 shares with a nominal value of 130.20 EUR, or to a combination of both. These shares are not negotiable and cannot be transferred, except with the prior approval of the Board of Directors.

A cooperative company is a company composed of a variable number of partners (on this website we also use the word investor or shareholder) with variable contributions. In principle, a partner wanting to resign always has the possibility to do so during the first six months of the financial year. Only in a number of cases provided for in the articles of association, the Board of Directors can refuse or postpone a resignation.

2. Costs

You don’t pay any entry, exit or management fees.

3. Dividend

The dividend or profit share is the annual financial bonus in return for your investment in Incofin cvso. Every shareholder is entitled to it. Every year the General Meeting of shareholders decides whether a dividend will be paid out. This depends on the results obtained. The dividend for shares purchased in the previous financial year is calculated pro rata temporis and per month. The earlier in the year you subscribe to new shares, the bigger your bonus when the dividend is paid out. The dividend from the past cannot be guaranteed for the future.

Incofin cvso does not aim for a maximum dividend. It aims for a reasonable dividend. After all, our main goal is to make sure that our investments have a major social impact. The profits that are not paid out are used to extend our investment portfolio to reach a larger number of small entrepreneurs.

Because of the social goal of Incofin cvso we do not seek excessive profit. Still, Incofin cvso wants to develop its finance activities in accordance with a healthy logic in relation to business economics. We are convinced that this is the best way to help build a financial network in the South.

4. Tax law – withholding tax on income from movable assets


For the year 2024 the first 833 euros of dividends per taxpayer will be exempt from withholding tax.

This exemption applies to all dividends, from both Belgian and foreign companies. However, the exemption does not apply to dividends from investment funds and legal arrangements. The exemption does apply to recognized cooperative companies such as Incofin cvso.

Incofin withholds the withholding tax from the full amount of the dividends, without taking into account the exemption of EUR 833 (income year 2024 = dividend for 2023, tax year 2025). As an investor you must claim the exemption yourself in the tax return. Not by stating the amount of the exemption (833 euros 2024), but by calculating the withheld withholding tax on the exempt amount of your dividends and declaring that withholding tax in the new section provided for this in the tax return.

The exemption of EUR 833 (for the income in 2024 – dividend over 2023) only applies to natural persons (Belgian residents and foreign non-residents). The exemption does not apply to companies and / or legal entities that are subject to corporation tax. For non-residents who are required to submit a declaration because they still have other Belgian income, the application for reimbursement must be made through that declaration.

Shareholders can freely choose which dividends to request a claim for withholding tax. Dividends are normally subject to 30% withholding tax but other rates may apply. The basket of dividends can therefore be optimized.

Reduced withholding tax

Since 1 January 2017, a uniform rate of 30% withholding tax applies when dividends are paid. However, since 1 July 2013 under certain conditions, it is possible to benefit from a reduced withholding tax of 20 or 15% for dividends, as explained below:

– it concerns shares issued by an SME company (which is the case for Incofin cvso at today’s date). This condition only applies to the financial year during which the capital contribution takes place. If the company becomes a large company during a later financial year, then this condition remains fulfilled.

– the shares are fully paid up

– dividends must arise from registered shares.

– the shareholders must remain in full ownership of the shares.

The benefit will be lost on the transfer of ownership, unless in the following cases:
• transfer in straight line or between spouses via inheritance or donation in full ownership;
• a distribution of the full ownership in bare ownership and usufruct in favor of the heirs and surviving spouse as a result of an inheritance, legacy or an ascendant division that does not affect the usufruct of the surviving spouse;
• transfers as a result of mergers, splits and equivalent transactions carried out in a fiscally neutral manner.

The normal withholding tax of 30% remains applicable to the dividends granted or granted before the profit distribution of the second financial year after that of the contribution. Only then will the withholding tax be reduced to:

• 20% for the dividends granted or granted on the profit distribution of the second financial year after that of the contribution; and
• 15% for the dividends granted or granted on the profit distribution of the third financial year after that of the contribution, and on the subsequent profit distributions.

In order to avoid misuse, in the event of a capital reduction (sale of the shares to Incofin), since 1 May 2013, the reduced rate only applies to the contributions that are higher than the reduction. Given example: on 12 May 2013 a capital reduction of 2,604 euros and on July 26, 2013 a capital increase of 7,812 euros. Then the reduced rate only applies to 5,208 euros.Any capital reductions after the contribution are first deducted from the capital that benefits from the reduced rate.

5. Tax law – Tax reduction

Incofin cvso is a recognized “Development Fund”. That is why, under certain conditions, you are entitled to a 5 % tax reduction on the amount you invest.
Every year you can include new investments in your tax return (provided that you are liable to tax in Belgium).


You pay in 2024 a minimum amount of 520.80 Euros (= 4 x 1/20 Incofin cvso share representing a value of 130.20 Euros). That way you exceed the legal minimum of 410 Euros . This minimum is an indexed amount, meaning that it may increase or decrease in the years to come;

  • You keep the shares for at least 5 years (60 months) without interruption (except in case of death);
  • You are a natural person;
  • You live in Belgium;
  • Along with your tax return you submit the certificate which you receive from Incofin cvso every year (before 31 March of the assessment year).

What tax reduction are we talking about for 2021?

The tax reduction corresponds to 5% of the invested amount. The maximum tax advantage you may receive is 340 Euros (2024). Fiscal optimization means purchasing Incofin cvso shares for an amount of 6,900,80 Euros (= 53 x 1/20 Incofin cvso share representing a value of 130.20 Euros for example). With this investment you are entitled to a tax reduction of 340 Euros.

The maximum amount of 330 Euros can also be split over the purchase of various shares in the same year.

How does it work?

Are you buying shares this year? Then you are entitled to a 5% tax reduction next year, with a maximum of 340 Euros for purchase year 2024.

Can spouses enjoy a tax reduction too? Yes, also spouses are entitled to a full reduction when the shares are registered in their personal names.

What happens if you do not keep the shares for 5 years? If you do not keep the shares for 5 years (60 months), a tax increase will follow by way of compensation. This increase is calculated in your taxes of the year in which you sell. The calculation is made as follows: 1/60 of the tax reduction obtained multiplied by the number of full months that remain until the end of the 5-year period.

In case of death (also within the 5-year period) the tax reduction obtained is not lost.

Which box of my tax return must I fill in to enjoy the tax reduction?

The tax reduction on investments in recognized Development Funds is mentioned in box X, letter N, code 1323(-35) or 2323(-35)

6. Main risks

Investing in shares entails risks. As a subscriber you run the risk of losing all or part of the invested capital. You are advised to read the information note in advance and to pay particular attention to the risk factors.