Withholding tax exemption

The first tranche of 800 euros in dividends for each taxpayer has been exempt from withholding tax for the income year 2019.

This exemption is applicable to all dividends from both Belgian and foreign companies. However, the exemption does not apply to dividends from investment funds and other legal constructions. However, the exemption does apply to recognised cooperative companies such as Incofin CVSO.

Dividends of recognised cooperative companies have already been exempted from withholding tax for the first tranche of 190 euros in dividends (200 euros indexed for 2019). This exemption of 190 euros in withholding tax for dividends of cooperative companies will from now on be integrated in the general new exemption for dividends.

Since 2018, the withholding tax has been deducted from all dividends by Incofin at source. However, as of 2019 the exemption of withholding tax will have to be claimed back by each tax payer through the tax return.

Incofin deducts the withholding tax from the full amount of the dividends without taking account the exemption of 640 euros (the income year 2018 = dividend for financial year 2017), or 800 euros for the income year 2019 (=dividend for financial year 2018). As an investor, you must claim the exemption in your tax return. Not by indicating the amount of the exemption (640 euros in 2018) but by calculating the amount of the withholding tax exemption applicable to the dividends received, and by indicating such amount under the new heading foreseen in the tax return form.

The amount of withholding tax exemption indicated by you is set off against  the tax owed by you and possibly repaid.

The exemption of 800 euros for the income year 2019 (640 euros for the income year 2018) only applies to natural persons (Belgian residents and foreign non-residents). The exemption does not apply to companies and/or legal entities subject to companies or legal entities income tax. In the case of non-residents who are obliged to submit a tax return because they earn other Belgian incomes, the refund may be applied for through this return.

Incofin will issue a certificate which clearly indicates the percentage of withholding tax deducted from the dividends received by you. You may keep this as evidence of a possible claim from the tax authorities.

These descriptions of legal and tax provisions may under no circumstances be construed as legal and / or tax advice for (potential) investors. (Potential) investors are requested to consult with their own adviser, their own accountant or other advisers regarding the legal, tax and other aspects related to the Incofin cvso shares.