The Tax Shelter's yield remains above 14% net for the third consecutive half-year.
Nothing new regarding the tax yield of the operation. The exemption rate (421%) which applies to the amount invested is higher than the marginal tax rate of 25% (ISOC). Result: the amount invested in Tax Shelter is lower than the amount of tax exempt, with a positive delta for the investor of 5.25%.
Consider a company taxed at the standard rate of 25%.
If it makes a pre-tax profit of €500,000, it will have to pay €125,000 in taxes to the State.
If she chooses to make a Tax Shelter of €50,000, she will be able to tax immunize €210,500. Indeed, the Tax Shelter's immunization rate, since the 2021 tax year, amounts to 421%.
Therefore, its taxable base after Tax Shelter will be reduced to 500,000 – 210,500 = €289,500.
Let's calculate the corporate tax on this new amount: 289,500 x 25% = €72,375.
Let us now add to this tax the amount of the Tax Shelter investment paid to the producer of the film: 72,375 + 50,000 = 122,375€.
The tax yield from the Tax Shelter operation is equal to 125,000 – 122,375 = €2,625.
Thanks to the Tax Shelter operation, the investor realizes a tax gain of €2,625, or 5.25% of his investment.
Last update on : 08.07.2024
But that's not all !
The Tax Shelter legislation (article 194ter et seq. of the CIR92) provides for the possibility for the producer to supplement the tax return by paying, under conditions, an additional financial return.
This is not an obligation for the producer, but rather a possibility offered to him to increase the attractiveness of the Tax Shelter for investors.
All intermediaries active on the market today practice an identical policy, which consists of paying the legal maximum to the investor. So you have to take advantage of it!
Concretely, the law imposes a maximum rate which is recalculated every 6 months (January 1 and July 1) based on the 12-month Euribor rate of the previous semester.
The financial return begins to accrue on the date of payment of the investment into the producer's account, and until obtaining the final tax certificate issued by the FPS Finances, with a maximum of 18 months.
In practice, remember that in the vast majority of cases, payment of the financial return takes place after 18 months and therefore before the FPS Finances has issued the final tax certificate allowing the transaction to be definitively closed.
For the period running from July 1, 2024 to December 31, 2024 (amounts paid during this period), the amount of the financial bonus amounts to 12.244% gross of the amount invested.
On this amount, which will be considered as a product, the investor will have to pay the ISOC (25%) in the year in which he receives it. The net financial premium, received 18 months after the Tax Shelter investment, therefore amounts to 9.183%.
5.25% + 9.183% = 14.433%!
Last update on : 08.07.2024
Not paying your taxes early has a high cost in Belgium. From the 2025 tax year, companies must supplement their tax with a fine which will amount to 9% of the tax due.
The Tax Shelter, since it reduces the tax base, also reduces the amount of the fine.
It is therefore very advantageous for companies to consider a Tax Shelter if they realize at the end of the tax year that they will be subject to an increase in their tax.
The overall net gain from a Tax Shelter operation for a company with insufficient advance payments can reach 24%!
Last update on : 08.07.2024
Finally, remember that there is a double ceiling on the amount that a company can tax immunize via a Tax Shelter:
What should you do if your Tax Shelter investment exceeds one of these limits?
In such cases, the law authorizes you to carry the surplus forward to a subsequent fiscal year, until the 4th following fiscal year.
You will therefore need to be careful, in subsequent years, to first use your excess balance before considering a new investment.
This calculation can be done with the help of your Tax Shelter Investment Consultant from SCOPE Invest.
Last update on : 08.07.2024