ARTICLE · 08 FEBRUARY 2024

CAYMAN TAX 2.1 – Sharpened Teeth Or Mere Dentures?

Tiberghien

Explore more from Tiberghien

The draft bill approved at the Council of Ministers meeting on Friday, Oct. 27, 2023, proposes a whole number of changes to the cayman tax to ensure - in its own words - that several "loopholes" are closed.

GlobalTax

Griet Vanden Abeele

Emilie Van Goidsenhoven

Christophe Coudron

Stephanie Gabriel

Mariëlle Ruell

The draft bill approved at the Council of Ministers meeting on Friday, Oct. 27, 2023, proposes a whole number of changes to the cayman tax to ensure - in its own words - that several "loopholes" are closed. Despite the more stringent cayman tax 2.0, according to the draft bill, there remained multiple problematic areas in the legislation, especially from the point of view of the tax authorities, which the Court of Audit also cited in its recent April 2023 report. However, some of the new measures immediately raise additional questions as they detract from the internal logic of the cayman tax. It remains to be seen whether the entirety of this draft bill will pass the test of the Council of State and possibly the Constitutional Court. This draft bill makes the cayman tax even more illogical and arbitrary than before. Moreover, it is striking that the bill is very one-sidedly "in favor of the tax authorities" and does not at all meet the numerous concerns on the part

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Belgian Constitutional Court Allows Landmark UTPR Case (Pillar Two) To Continue Before The CJEU, Despite SbS Package

Fiscaal regime auteursrechten voor software: rulingdienst verduidelijkt timing

Meerwaardebelasting op financiële activa: de fiscus verduidelijkt

Apportez-nous vos plus-values…elles seront exonérées en Belgique

Bring Us Your Capital Gains … They Will Be Exempted In Belgium

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Tax
- Tax Authorities
- Capital Gains Tax

Related Comparative Guides

Comparative Guide

Tax

Comparative Guide

Tax Disputes

See more popular content from

Tax

Capital Gains Tax In Belgium Becomes Reality As Of 1 January 2026

The Belgian federal government has reached an agreement on the introduction of a new capital gains tax, which will significantly affect the taxation of financial assets for private individuals and certain legal entities.

Bring Us Your Capital Gains … They Will Be Exempted In Belgium

Belgium has long been considered a tax haven due to its lack of capital gains tax on financial assets managed within a private estate. The Act of 6 April 2026 introduces a new capital gains tax regime with a 10% fixed rate and generous allowances, including a €1 million exemption for business owners holding at least 20% of company shares. Despite this change, Belgium's competitive tax structure with step-up provisions for new residents and deferred exit taxes may continue to attract entrepreneurs and

The Belgian New Capital Gains Tax On Financial Assets

The federal government is asking the wealthiest individuals ("with the broadest shoulders') to make an additional contribution in order to reduce the budget deficit. This will be done in particular through a capital gains...

The Myth Of The 183 Days

Tax residence can be a difficult concept, especially if you have a residence in different countries. This is something Belgian singer Angèle discovered the hard way.

European UnionTax

Meerwaardebelasting op financiële activa: de fiscus verduidelijkt

Belgium's tax administration has issued a crucial circular clarifying the application of the new capital gains tax on financial assets, addressing key uncertainties around realization timing, earn-out structures, partnership vehicles, and historical exemptions. The guidance provides essential insights for taxpayers navigating payment modalities, matrimonial property regimes, and the complex interaction between the tax and existing corporate structures.

The EU's Tax Simplification Package: Practical Implications And Key Considerations

The European Commission has unveiled its most comprehensive EU direct tax framework review to date, shifting policy focus from anti-avoidance measures toward competitiveness and simplification. The Tax Simplification Package promises EUR8 billion in annual savings through sweeping changes to withholding taxes, dividend taxation, interest limitation rules, and cross-border structures. These reforms will fundamentally reshape how businesses structure their European operations, requiring careful analysis of ex

European UnionTax

Belgian Constitutional Court Allows Landmark UTPR Case (Pillar Two) To Continue Before The CJEU, Despite SbS Package

A Belgian Constitutional Court has referred critical questions to the Court of Justice of the European Union regarding the validity of the Undertaxed Profits Rule (UTPR) under the EU Pillar Two Directive.

Belgian Budgetary Tax Measures Approved: What To Expect As Of 2024?

In March 2023, the Belgian Minister of Finance published a proposal for a broad tax reform aiming more generally at modernising and simplifying the tax system and making the system more equitable.

EU Fund Managers: Structuring Considerations For Belgian Private Privak Investors In Luxembourg Private Equity Funds

Belgian family offices and fund-of-funds utilizing the Privak regime face unique challenges when investing through Luxembourg structures, particularly regarding tax-neutral status requirements and participation exemption conditions. The look-through treatment of transparent entities like SCSps can create complications with underlying assets, prompting the need for alternative structuring solutions that maintain compliance while accommodating diverse investor bases.

Claiming Back Withholding Taxes: Tax Claim Or Not?

Taxpayers can recover withholding taxes (WHT) that were unduly withheld by the debtor, for example, on Belgian dividends, interest, or where a payroll tax exemption was incorrectly applied.