Recently, the Belgian government has completed the introduction into Belgian financial law of an appropriate legal structure for securitization of receivables. A company which decides to securitize its receivables can now use either an "Institution for Investment in Receivables", which is organized by the Belgian law of December 4, 1990 on financial transactions and financial markets (fund or company), or another Belgian or foreign vehicle as the "Special Purpose Vehicle" for its securitization transaction.
The main advantages of a Belgian "Institution for Investment in Receivables" are the following :
- mortgage loans and consumer loans can be transferred
to this Institution without any important costs or
burdensome formalities;
- the virtual absence of corporate income tax in the hands
of the Institution organized in the form of a company;
- the unconditional application of the lower rate of withholding
tax (13.39%) on dividends distributed by the Institution
