In general, the Belgian financial intermediary is liable to pay Belgian FTT. In case transactions are executed by a foreign financial intermediary, the taxpayer status is generally shifted to the Belgian resident individual or corporate entity. The Belgian resident is however relieved of his obligation to pay the tax if the foreign financial intermediary pays on his/her behalf.
DEGIRO collects Belgian FTT from its Belgian resident clients. DEGIRO then pays and reports the Belgian FTT to the Belgian tax authorities. Belgian resident clients can however choose to calculate and pay the tax and furnish the preparation and filing of a Belgian FTT tax return themselves.
Belgian FTT applies to financial instruments issued by Belgian and non-Belgian resident companies. The financial instruments in scope include but are not limited to, shares, ETFs, bonds, contractual fund participations, shares in investment companies, and certificates. Transactions in CFDs and futures are not included in the scope.
The taxable event includes both the buy as well as the sell transaction when it takes place in exchange for a consideration (payment) and is executed on the secondary market (for example, an exchange).
For example, the purchase or sale of a share on the exchange is subject to Belgian FTT. Conversely, the purchase of a call option is not subject to Belgian FTT, however, the acquisition of the underlying stock upon exercise or assignment of the option is subject to Belgian FTT. Additionally, the redemption of a share in an accumulating investment company is also considered a taxable event.