DEBT RESTRUCTURINGS
GENERAL
1. Does debt have a specific meaning for tax purposes?
Debt is not separately defined for Belgian tax purposes, hence in principle the civil law definition prevails.
In the Belgian civil code, a loan is defined as a contract whereby one party (the lender) delivers to the other party (the borrower), either an asset (which the recipient can use under an obligation to return it after use) or a certain quantity of consumable goods (under the obligation for the lender to return the same quantity of goods of an equal type and quality).
By contrast, equity in the framework of a company contract is defined as a contribution of funds or assets with a view to sharing the profits (and losses) that may arise therefrom.
