Scoreboard for taxation on savings and investment products

Within the context of the strategic agenda, Febelfin attempted to map out taxation on savings products for banks and insurers, asset managers and bond and equity markets. The exercise revealed that taxes are levied on all savings products. Sometimes these levies are direct, but sometimes they are not.

However, comparing taxation on savings products, and by extension their impact on the return of these products, appears to be a difficult task. Firstly because the taxable base for the charges varies, but also because the rotation, return and risk of the various products are sometimes far removed from each other. And these three variables of course have a direct impact on the taxation of the products.

However, in its investigation Febelfin made several important findings.

  1. All financial products are taxed, in favour of the Belgian state.
  2. Both the nature and level of the charges can vary considerably.
  3. Financial products are always taxed, even if they produce no return.
  4. Because the products vary so much in terms of type, function and risk content, it is not easy to create a level playing field between the products.