MeDirect has an obligation to deduct Belgian withholding tax on:
- Interest income paid on current accounts, (regulated) savings accountsand fixed term deposits.
- Coupons paid on bonds issued by non-residents.
- Dividends paid on equities issued by non-residents as well as dividends from non-resident funds.
- Capital gains earned from certain transactions on share or units of investment funds that invest 10% or more in interest-generating securities (such as bonds). The withholding tax is applied on the “interest component” of realized capital gains.
In such cases MeDirect will credit your income net of Belgian withholding tax due and remit the withholding tax to the Belgian tax authorities. This withholding tax is liberating, meaning that income previously subject to Belgian withholding tax must not be mentioned in your income tax return.
MeDirect recommends that you seek professional tax advice from a Tax advisor if you have any questions about the tax treatment of your investment.