Thousands of Belgian companies invest each year for operations of nearly €200 million annually.
Taking up the audiovisual Tax Shelter1 challenge in partnership with SCOPE offers the prospect of a net gain of nearly 10%, while at the same time providing positive economic spin-offs on Belgian soil. So whether your company is Bel-20-listed or a one-man operation, and irrespective of the sector in which you’re active, the Tax Shelter is made for you. From the tax relief to the additional yield, we make the calculations easy for you.
For legal entities benefiting from a reduced rate of taxation, the overall gain over the term of the operation may be negative by as much as -27.38%.
Investors should examine their own specific situation with their usual tax adviser prior to making any investment decision.
1. Legal references: Law of 26.05.2016 amending the law of 12.05.2014 (MB 07.06.2016); Law of 12.05.2014 amending Art. 194ter of the 1992 CIR on the Tax Shelter system for audiovisual production (MB 27.05.2014).
Last update on : 13.05.2020
In practice, the Tax Shelter enables you to generate a yield from part of your tax. Any participating company can invest a maximum sum of €238,764, immunised up to a level of 356% (from the 2019 financial year). Courtesy of the Tax Shelter mechanism, it is therefore possible to reduce your taxable base by €850,000, the tax exemption also being capped at 50% of your taxable profit reserves per year2.
Let’s take the example of a company whose pre-tax profit is €1,000,000. Based on a general taxation rate of 29.58% (applicable from the 2019 financial year), its tax bill comes to €295,800. By investing €100,000 in the Tax Shelter, it benefits from a reduction of approximately €105,000. Because it can have €356,000 (i.e. €100,000 x 356%) tax-exempted, its new taxable base is set at €644,000, thereby reducing its tax bill to €190,495.
This tax relief thus amounts to 105.3% of the sum invested (in other words, the initial investment x 356% x 29.58%). On top of this gain of 5.3%, the company receives an additional yield3, paid within 18 months of the investment, whereby the tax relief is increased by an additional net yield (after payment of tax at the rate of 29.58%) of 4.59% of the sum invested. The potential net overall gain of a Tax Shelter operation thus comes to 9.90% (i.e. 5.305% + 4.562%).
Want to find out more? SCOPE offers you a simulation tool that allows you to calculate the optimum amount for your future investment.
For legal entities benefiting from a reduced rate of taxation, the overall gain over the term of the operation may be negative by as much as -27.38%.
Investors should examine their own specific situation with their usual tax adviser prior to making any investment decision.
2. During the tax year of the investment.
3. The amount of the additional yield depends on the EURIBOR rate applicable at the time of payment and is calculated for a maximum period of 18 months.
Last update on : 13.05.2020
SCOPE drastically reduces the risks associated with Tax Shelter4 operations. A pioneer within the sector, SCOPE plays a direct role in the auditing of the Belgian expenditure through the intermediary of its sister company SCOPE Pictures, executive coproducer of the films concerned. This link with SCOPE Pictures gives SCOPE Invest the benefit of a pioneering history of efficient operation on the Tax Shelter market.
A Tax Shelter operation in partnership with SCOPE offers the best possible scenario for your investment.
4. For a detailed description of the Tax Shelter mechanism and of Scope’s role, see the article “What is the “audiovisual” Tax Shelter?”
Last update on : 13.05.2020