Investments

Tax shift - Tax changes

Budget 2017: impact on non-regulated savings accounts, current accounts and investments products

Increase withholding tax from 27% to 30%

As of 1/1/17 all credited or payable movable assets will be subject to a 30% withholding tax.

The withholding tax on the income of regulated savings accounts (ING Lion Premium Savings Account, ING Lion Deposit, ING Orange Savings Account, ING Green Savings Account and ING Tempo Savings) is unchanged: 15% withholding tax, with exemption if the interest amount does not exceed 1,880 euros per year per taxpayer (physical persons).


The allotment or payment date of movable assets is defined as:

Example: The potential credit interests of a current account (as “ING Green Account”) related to the period 01/01/2016-31/12/2016 are subject to 27% withholding tax, even if they are effectively paid in January 2017.


Example: the coupons of a Belgian bond expired in 2016 are subject to 27% withholding tax, even if they are effectively paid in 2017.


Example: a distribution of dividends is decided on 20/12/2016 during the General Assembly of an Italian company. The amount is credited on 06/02/2017 on the account of a shareholder of this company. The shareholder has his stocks at ING Belgium NV/SA and is subject to 30% withholding tax.

Important remarks:
Removal of the tax on speculation

Since 01/01/2016, a 33% speculation tax has been applied to the capital gains realised a paid transaction (that is to say for a sale or for certain securities transactions) for valuable consideration (that is to say the purchase or acquisition of certain securities transactions) took place less than six months before the date of transfer.

As from 01/01/2017, this tax is removed, without retroactive effect.

Stock exchange tax: Increase of the maximum amounts

As from 01/01/2017, the maximum amounts of the stock exchange tax will be multiplied by 2.

An overview of the new rates and maximum amounts applicable as from 1st January 2017 is available hereunder:

Tax ceilings withholding tax
Subscription
Normal charge 0%
Redemption or liquidation by the Sicav
Normal charge 0%
Public* capitalisation trust shares "sicav/bevek" (including trackers) 1.32% max. 4000 €
Purchases and sales (secondary market)
Normal charge 0.27% max. 1600 €
Public* capitalisation trust shares "sicav/bevek" (including trackers) 1.32% max. 4000 €
Public* distribution trust shares "sicav/bevek" (including trackers) 0.09% max. 1300 €
Public* trust certificates "FCP/GBF" (including trackers) 0.09% max. 1300 €
Belgian certificates of foreign shares 0.09% max. 1300 €
Bonds and Structured Notes with guaranteed capital 100% 0.09% max. 1300 €
Lineair Bonds (OLOS) 0%
Regulated Real estate Company (RREC) 0.09% max. 1300 €

* Public if registered with the FSMA.

Withholding tax rates
Products Belgian Withholding tax rate until 31.12.16 Belgian Withholding tax rate as from 01.01.17
Current accounts
All current accounts (Ordinary ING current account , ING Green Account, ING Lion Account,…)
27% 30%
Regulated savings accounts
ING Green Savings Account, ING Orange Savings Account, ING Lion Deposit, ING Lion Premium Savings Account and ING Tempo Savings
0%
on tax-exempt tranche**
0%
on tax-exempt tranche**
15%
above the tax-exempt tranche**
15%
above the tax-exempt tranche**
Other products
Term accounts, ING Long Term Account, ING Lion Fidelity Account, ING Flexibonus Account 3 or 6, ING MC Account, ING Business Account, ING Invest Account, ING Relax, ING Notice Account,...
27% 30%
ING Thematic Citizen's Lending 27% 30%

** The tax-exempt tranche of interest on regulated savings accounts amounts to 1,880 euros per year.

Products Belgian Withholding tax rate until 31.12.16 Belgian Withholding tax rate as from 01.01.17
Bonds (interest)
eg: Eurobond, ING Structured Notes (IBIF), Invest Notes
27% 30%
Savings certificates and subordinated certificates (interest) 27% 30%
State Bonds (other than Leterme)*** 27% 30%
Leterme State Bonds*** 15% 15%
Ordinary dividends 27% 30%
Dividends of SICAV funds 27% 30%
Regulated real estate company (RREC) 27% 30%
Regulated real estate company with at least 60% of its investments concentrated in properties primarily devoted to healthcare 27% 30%
Gains on SICAV funds investing at least 25% in debt bonds 27% 30%
Life insurance branch 21 & some branch 23: redemption within 8 years (no 130% death cover)
eg: ING Life Optima, ING Life Savings Plan, ING Life Personal Protected
27% 30%
Coupons of Belgian Mutual Investment Funds 0% 0%
Real estate certificates 27% 30%
Liquidation Boni 27% 30%

*** Government Bonds of type "Leterme": issued 24/11/2011 - 02/12/2011.