Several months after the entry into force of the new capital gains tax on financial assets, the Belgian Federal Public Service Finance (FPS Finance) published Circular No. 2026/C/74 of 22 July 2026.
With more than 100 pages of commentary and examples, this is the first comprehensive administrative position on the reform. While the Act of 6 April 2026 established the legal framework, the Circular now clarifies how the tax authorities intend to interpret and apply these new rules.
For investors, entrepreneurs and their advisers, this administrative guidance is essential reading.
But which clarifications truly deserve your attention?
Practice now complements the law
The circular does more than restate the statutory provisions. It provides practical clarification on several key concepts, illustrates their application through numerous examples, and establishes the reference framework on which the tax authorities will rely during future tax audits.
Coexistence with the general regime for miscellaneous income
The circular begins by confirming that the new tax coexists with the existing miscellaneous income regime: any transaction exceeding the scope of normal private asset management or considered speculative remains taxable at 33% under Article 90, 1° of the Belgian Income Tax Code 1992 (ITC 92). The taxpayer is the owner or bare owner of the transferred assets, never the usufructuary—a distinction that is particularly significant in estate planning.
A particularly broad definition of financial assets
The circular confirms that the concept of “financial assets” is not limited to shares and bonds. It also includes ETFs, ETNs, crypto-assets, units in collective investment undertakings, and interests in simple partnerships. Conversely, certain payment instruments remain outside the scope of the regime.
This clarification confirms that the reform extends far beyond traditional investment portfolios.
Examples of internal capital gains
The circular sheds light on this issue by describing several practical cases and examples. For instance, where parents sell the shares of their company to a holding company owned by their children, in which the parents themselves are not shareholders, the specific regime does not apply. However, if the parents subsequently transfer the balance of their current account to their children, the tax authorities may recharacterise the transaction as an internal capital gain under the general anti-abuse provision of Article 344, §1 ITC 92. Conversely, where a private equity fund exercises joint control, Article 90, 9°, a) does not apply because the shareholder no longer exercises control “alone or together with close family members.”
Substantial Shareholdings: Long-Awaited Clarifications
FPS Finance also provides several important clarifications regarding the regime applicable to substantial shareholdings.
In particular, the Circular confirms that the 20% threshold is assessed solely at the level of the transferor, irrespective of the shareholdings held by family members. It also clarifies that profit certificates, options and warrants are not taken into account when determining this threshold, and illustrates various situations involving usufruct, bare ownership and successive transfers.
These examples will help provide greater legal certainty for transactions involving family-owned businesses.
The EUR 1 million exemption: a mechanism finally illustrated
Another particularly useful point concerns the operation of the EUR 1 million exemption applicable to substantial shareholdings.
The circular confirms that this exemption operates as a genuine “backpack” mechanism: the available exemption amount is assessed over a rolling period of five taxable periods and is gradually restored over time. Several numerical examples finally make its practical implications easier to understand.
For shareholders considering a disposal, these clarifications could influence the timing of certain transactions.
Reporting obligation: key koints and clarifications
For internal capital gains and substantial shareholdings, withholding tax is not collected by intermediaries, as they are not in a position to determine the amount of the capital gain or correctly withhold the tax. The tax is therefore assessed through the taxpayer’s income tax return.
For this reason, the legislation introduced a reporting obligation for intermediaries involved in such transactions. This obligation enables the tax authorities to verify whether any capital gain has been properly declared. Since intermediaries are not always able to determine whether a transaction actually gives rise to a taxable capital gain, the reporting obligation is linked to the transaction itself. Reporting becomes mandatory as soon as the transaction has been effectively executed.
The circular provides numerous clarifications, including the timing of the reporting obligation, the meaning of the term “person involved,” the required connection with Belgium, situations involving multiple intermediaries, the interaction with professional secrecy, and the content of the report itself.
Exit Tax: particular attention to departures from Belgium
The Circular also devotes particular attention to the new exit tax mechanism. It specifies the situations in which a transfer of tax residence outside Belgium may trigger taxation of unrealised capital gains on certain financial assets, while also clarifying the calculation methods and the deferral mechanisms provided for by law.
At a time when the international mobility of entrepreneurs and investors continues to increase, these clarifications highlight the importance of anticipating the tax consequences of a change of tax residence.
What this means for you
The publication of Circular No. 2026/C/74 marks a new milestone in the implementation of the reform.
If you are an investor, entrepreneur or business executive, this circular is a valuable tool to help anticipate the tax consequences of your transactions, secure your decisions and reduce the risks associated with future tax audits.
At Tax Consult, we closely monitor these developments in order to assist you in analysing your investments, restructurings and succession planning projects in light of this new administrative guidance.
