Specific sectors

Taxation of the social profit and public sectors differs greatly from traditional corporate taxation. Similarly, the tax aspects of real estate, IT, technology and innovation require an in-depth specialization. Mythra has ample experience in these matters and will gladly assist you with any tax matter.

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Please do not hesitate to contact us if you have any question or would like more information.

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Social profit sector

Hospitals, elderly care homes, non-governmental organizations, religious institutions, (international) not-for-profit organizations and (private and public) foundations play an important role in today’s economy. Not only do they create a significant number of jobs, their resources continue to be reduced a result of which these must be used as efficient as possible.

The increased importance of this sector has also sparked the interest of the tax authorities. More and more people and organizations active in the social profit sector are confronted with questions or audits. Limited resources also resulted in a growing importance for tax planning and tax saving strategies in this sector. Given the increased level of scrutiny by the tax authorities, preventive screening of one’s tax position is highly recommended to prevent unpleasant surprises at the time of an audit. When advisable, we can also apply for an advance ruling in tax matters, in which the tax consequences of a contemplated transaction or operation are discussed in advance with the Belgian Ruling Commission. The end result – a ruling – is binding upon the Belgian tax authorities.

Taxation of the social profit sector differs greatly from traditional corporate taxation and requires an in-depth specialization from tax advisors. Mythra has ample experience in these matters and will gladly assist you with inter alia the following:

  • Assistance with administrative and court proceedings
  • Review and determination of your tax position, as well as the tax position of existing or new entities within the group
  • Development of (alleged) commercial activities and the tension between the legal entities tax and corporate income tax (including so-called “filialization”)
  • Voluntary or mandatory transition from the tax on legal entities to corporate income tax
  • Restructurings (mergers, acquisitions, spin-offs, dissolution etc.)
  • Tax consequences of financing or cooperation with non-commercial and commercial entities
  • Application of VAT (exemptions)
  • Reductions and exemptions in the field of registration duties and inheritance tax
  • Claiming property tax exemptions
  • Obligations relating to withholding tax and salary withholding tax
  • Alternative forms of remuneration (fringe benefits)
  • Voluntary work
  • Tax documentary duties for service providers, managers, company directors, doctors etc.
  • Local and regional taxes
  • Compensatory tax for succession duty
  • Etc.

Public sector

Governments and governmental institutions (federal government, regions, communities, provinces, cities and municipalities and public centers for social welfare) levy their own taxes, but at the same time are liable to tax. In addition, their internal and external privatized government agencies (such as autonomous municipal enterprises, autonomous provincial enterprises, inter-municipal associations, care homes) and government agencies are liable to tax.

As a result, the public sector does not escape from scrutiny from the tax authorities. Moreover, the tax landscape in this sector has been subject to significant changes over the past few years. For example, rather recently the tax regime of inter-municipal associations has changed significantly. Moreover, audits in the field of VAT are becoming more common. In the past years there has also been a lot of discussion on the taxation of income from concessions and cellphone towers.

Taxation of the public sector differs greatly from traditional corporate taxation and requires an in-depth specialization from tax advisors. Mythra has ample experience in these matters and will gladly assist you with inter alia the following:

  • Assistance with administrative and court proceedings
  • Review and determination of your tax position, as well as the tax position of external privatized government agencies
  • Development of (alleged) commercial activities and the tension between the tax on legal entities and corporate income tax
  • Restructurings (mergers, acquisitions, spin-offs, dissolution etc.)
  • Tax consequences of financing or cooperation with non-commercial and commercial entities (such as PPP-projects and DBFM(O) contracts)
  • Application of VAT (exemptions)
  • Reductions and exemptions in the field of registration duties and inheritance tax
  • Claiming property tax exemptions
  • Obligations relating to withholding tax and salary withholding tax
  • Alternative forms of remuneration (fringe benefits)
  • Tax documentary duties for service providers and personnel
  • Withholding tax on income from fairs, terraces, displays, concessions etc.
  • Tax regime on income from cellphone towers
  • Local and regional taxes
  • Etc.

IT, technology and innovation

Taxation of enterprises active in the sectors of IT, technology and innovation differs greatly from traditional corporate taxation. Moreover, Belgium has introduced several preferential regimes and tax incentives to stimulate these sectors.

The lawyers of Mythra can assist entities active in these sectors with inter alia the following:

  • Assistance with administrative and court proceedings
  • Qualification for tax purposes of income from software and technology (royalty, capital gain or ordinary business profit)
  • Hold IP privately or through a corporation
  • Screening of agreements with clientele, (sub)contractors and employees
  • Innovation income deduction
  • Investment allowance
  • Alternative remuneration (fringe benefits and royalty-based remuneration)
  • Partial payroll tax exemption for researchers
  • Special regime for a “Young Innovative Company”
  • Etc.

Real Estate

The tax lawyers of Mythra have a broad experience in the field of real estate taxation.

We can assist private individuals, entrepreneurs and government bodies with inter alia the following:

  • Assistance with administrative and court proceedings
  • Qualification for tax purposes of income from real estate (miscellaneous income vs. professional income)
  • Invest in real estate privately or through a corporation
  • Share deal vs. asset deal
  • Financing of real estate projects
  • Pre- and post-acquisition structuring
  • Tax due diligence
  • Long lease, building right and usufruct
  • Leasing and sale & lease back
  • The tax consequences of financing through or cooperation with (non-)commercial entities (such as PPP projects and DBFM(O))
  • Claiming the exemption from real estate tax
  • Local and regional taxes (such as the tax on second abodes)
  • Belgian tax consequences of owning real estate abroad or time shares
  • Etc.

Contact

Please do not hesitate to contact us if you have any question or would like more information.

Contact us