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Belgium: Domestic Corporate Taxation

Capital Gains Tax on the Sale of Shares

In Belgium capital gains are deemed corporate income and are taxed at the normal rate. By way of exception capital gains realized by a Belgian parent corporation on the sale of shares in an EU or non-EU subsidiary are exempt from corporate income tax in Belgium irrespective of the size or duration of shareholding, provided the 'taxation conditions' of the participation exemption regime are met. Capital losses on the sale of shares are not tax deductible. (N.B. A Danish holding company by contrast is only exempted in Denmark from capital gains tax on the sale of shares in a subsidiary if it has held the subsidiary's shares for a minimum period of 3 years and provided the subsidiary is not deemed a "Controlled Foreign Corporation").

 

 

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