The Belgian Tax on Stock Exchange Transactions and its Application to Investment Funds

In this note, the authors discuss the Belgian tax on stock exchange transactions (taxe sur les opérations de bourse, TOB). Little known, rarely commented on, technically complex and governed by very old texts that are poorly adapted to current financial products, the TOB is a tax that Belgian residents may not ignore in the world of business and wealth management since it applies to most financial transactions carried out via a professional intermediary established in Belgium or abroad. This note describes the history of this ancient tax, its scope of application, particularly in respect of investment funds, the applicable rates and the available exemptions before concluding with recommendations regarding its reform, which seems to be part of the planning of the new Belgian government.