What type of income or capital gain is subject to withholding tax in Belgium?
MeDirect has an obligation to deduct Belgian withholding tax on:
- Interest income paid on Cash Accounts, Express Savings Accounts, ME Savings Accounts and Fixed Term Deposits.
- Coupons paid on bonds’ holdings.
- Dividends paid on equities, ETFs and funds’ holdings.
- Capital gains earned from the sale of funds and ETFs that invest 10% or more in fixed income securities (such as bonds). The withholding tax is applied on the capital gains arising from fixed income securities.
In such cases MeDirect will pay your income/sale proceeds net of withholding tax due and remit the withholding tax to the Belgian tax authority.
MeDirect recommends that you seek professional tax advice if you have any questions about the tax treatment of any investment.