Frequently Asked Questions


How does MeDirect calculate the capital gains tax or Reynders tax for investment funds?

Capital gains tax only applies to the sale of:

Funds purchased before 31 December 2017

  1. capitalisation funds and trackers which invest 25% or more in fixed-income investments such as bonds.
  2. distribution funds and trackers which invest 25% or more in fixed-income investments, and do not pay out 100% of their interest income.

In both cases a withholding tax (capital gains tax) of 30% is deducted from the capital gains resulting from these fixed-income securities.

Funds purchased after 1 January 2018

  1. capitalisation funds and trackers which invest 10% or more in fixed-income investments such as bonds;
  2. distribution funds and trackers which invest 10% or more in fixed-income investments, and do not pay out 100% of their interest income.

In both cases a withholding tax (capital gains tax) of 30% is deducted from the capital gains resulting from these fixed-income securities.

There are 2 methods to calculate this tax:

  • either the fund calculates the BE TIS value (Taxable Income per Share).
  • or the tax is calculated on the capital gains resulting from the fixed-income securities when the BE TIS value is unknown.

For example:

A capitalisation fund invests 40% in bonds and 60% in shares. The investor purchased the fund for EUR 100, and sells it for EUR 120.

The BE TIS value is known at the moment of purchase and sale. If the difference is positive, it is taxed at 30% withholding tax.

The fund does not calculate any BE TIS value. The realised capital gains is EUR 20. As the fund invested 40% in bonds, the tax is only calculated over 40%. 40% of EUR 20 is EUR 8. The tax is 30%, which means EUR 2.4 is deducted and the investor will receive EUR 5.6 net. The fund invests 60% in shares; 60% of EUR 20 is EUR 12, for which no capital gains tax is calculated. The investor will receive EUR 120 – EUR 2.4 (capital gains tax) = EUR 117.6 on selling the fund.