The steady rise in the Euribor rate during the second half of 2023 is having the effect of boosting effect the yield from the Tax Shelter, which has practically reached the 15% mark for all payments made in the first half of 2024.
This is an all-time high since the major reform to the Tax Shelter in 2015. Quite simply, the potential net return on this type of investment has risen by 50% in 30 months.
With the tax element remaining stable at 5.25% of the amount invested, it is the additional yield or financial premium offered by the producer to the investor that is benefiting from this historic increase.
Last update on : 02.03.2024
With almost €180 million invested each year by Belgian companies in this immunisation mechanism, around 5,000 companies, SMEs and large corporations, are using the Tax Shelter to reduce their tax burden and also to choose what their tax will actually be used for.
Among the reasons expressed by investors for using the Tax Shelter system, support for the cultural industry is one of the main factors for the mechanism’s success.
Last update on : 02.03.2024
We should also remember that the Tax Shelter is designed to help develop economic activity within Belgium. One of the things that is sometimes overlooked is the fact that the producers who benefit greatly from this financial windfall are required, in return, to spend around twice as much in Belgium as the funds raised through the Tax Shelter. All this is to the benefit of the national treasury, which sees its revenues (VAT, NOSS, etc.) increase as a result of this activity, which overall balances the mechanism while also driving the development of the Belgian audiovisual sector into the future.
Last update on : 02.03.2024
For companies whose tax year ends between now and 31st December 2024, the Tax Shelter offers an extra return if they have not made sufficient advance tax payments. For companies finding themselves in this situation, using the Tax Shelter makes it possible for them to reduce the amount of their tax surcharge by reducing their tax base. This is a positive side-effect of the Tax Shelter mechanism, offering in this case an overall net return of 22%.
Last update on : 02.03.2024