According to Article 19bis of the Belgian Income Tax Code ("ITC"), a 30% withholding tax is applicable to the component derived from interest income and net capital gains/losses on debt instruments (the so-called Belgium Taxable Income per Share or "BTIS") embedded in the capital gain realized by a Belgian individual investor upon sale, redemption of shares in UCIs (Undertaking for Collective Investment) or upon the liquidation of such funds.
For each fund, an annual asset test, which determines the percentage of the fund's assets invested in qualifying debt instruments must be performed in order to determine whether the redemptions in this fund are in scope of the 30% withholding tax.
For shares purchased prior to 1 January 2018, funds with more than 25% invested in qualifying debts are considered as in scope. For new subscriptions as from 1 January 2018 the scope has been widened to include any funds with more than 10% invested in qualifying debts.
In scope funds can choose to calculate the Belgium TIS, in which case the basis for the 30% withholding tax will be the positive delta between the BTIS at subscription date and the BTIS at redemption date.
In case no BTIS figures are available, the taxable amount is equal to the "capital gain", i.e. the increase in net asset value of the shares between subscription date and redemption date, multiplied by the percentage of assets invested in debt instruments as determined by the asset test.
For each of the Capital Group Luxembourg UCITS funds registered for retail distribution in Belgium, please find in the report below information on whether the fund is in or out of scope for the 30% withholding tax as well as the percentage of assets invested in debt instruments when the fund is in scope.