On 11 September 2026, the Flemish Tax Administration (Vlaamse Belastingdienst) published a comprehensive FAQ addressing the conditions for applying the favorable tax regime for the transfer of family businesses and companies under gift and inheritance tax, effective from 1 January 2026. This guidance clarifies the legislative changes introduced by the Flemish Parliament to support business succession, ensuring continuity of family-owned enterprises across generations. The FAQ interprets key provisions of the Flemish Tax Code (VCF) related to exemptions and reduced rates for qualifying family business transfers, including valuation methods, holding periods, and the definition of “family business” under Articles 2.7.1.0.1 and 2.7.3.2.1 VCF. The publication aims to provide legal certainty for taxpayers, notaries, and tax advisors navigating the new regime.
Key Takeaways
- Expanded Eligibility Criteria: The FAQ confirms that the relief applies to transfers of both individual enterprises and shares in qualifying companies, provided the donor or deceased held a minimum 10% stake for at least five years preceding the transfer, with active business operations required.
- Valuation and Anti-Abuse Measures: Detailed guidance on valuation methodologies aligns with EU state aid rules, incorporating independent expert reports for non-listed shares, while anti-abuse provisions target artificial restructuring solely to access the regime.
- Procedural Compliance: Taxpayers must file a specific declaration within six months of the transfer, accompanied by a business continuity plan demonstrating commitment to maintain operations for at least seven years post-transfer, failing which the benefit is clawed back with interest.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement