Tax on securities accounts. The Law of 7 February 2018 has introduced a new tax on securities accounts, which applies to physical persons that (directly or indirectly) hold certain types of qualifying securities such as shares, bonds, warrants and units of undertakings for collective investment (UCI), for an average amount exceeding EUR 500,000 on one or more securities accounts. The applicable tax rate is 0.15% and is to be computed, with respect a given accountholder, on the average value of those the securities attributable to that accountholder during a certain reference period. The new tax applies to both Belgian and non-Belgian resident physical persons, but for non-Belgian residents only the value of the qualifying securities that are held through one or more Belgian securities account(s) would in principle have to be taken into account. The Notes will be qualifying securities for the purposes of this tax. Prospective individual investors should thus be aware that subject to certain conditions, the value of the Notes may be taken into account in determining the aforementioned EUR 500,000 threshold and that, depending on their individual situation, an investment in the Notes may trigger a 0.15% tax on the value thereof (and possibly also on the value of any other qualifying securities they may hold through one or more securities accounts). Please note however that pursuant to certain double tax treaties entered into by Belgium, Belgium does not have taxing rights as regards capital (income). Hence, to the extent that the Tax on securities accounts is viewed as a tax on capital within the meaning of these double tax treaties, a treaty override may, subject to certain conditions be claimed. Please also note that a procedure to have the Tax on securities accounts annulled by the Constitutional Court has recently been launched. Prospective investors are strongly advised to seek their own professional advice in relation to the Tax on securities accounts.
