BELGIUM Law and Practice Contributed by: Alain Van Geel and Emilie Van Goidsenhoven, Tiberghien
Depending on the Region, the following are assimi - lated to direct descendants for the application of the gift/inheritance tax rates: • children adopted through simple adoption, pro - vided, amongst other things, that the adoptive child is the child of the partner of the adopter or the adoptive child has, before reaching the age of 21, received from the adopter or from the adopter and his or her partner jointly the care and support normally received by children from their parents, for one/six/three uninterrupted years; and
and Associations. As such, the private foundation can be used in various contexts: • as part of family estate and succession planning; • for purely philanthropic, altruistic and disinterested purposes; or • as a tool for certifying shares. The private foundation can have an interesting tax regime, provided certain conditions are met (see 3.1 Types of Trusts, Foundations or Similar Entities ). One of the main disadvantages, however, is the administra - tive obligations and publicity required. Non-Profit Associations The non-profit association (“ASBL”) and the public interest foundation are most commonly used for chari - table planning. The ASBL is an agreement between two or more members. The association must pursue disinterested purposes in the context of one or more specific activi - ties that it has as its object, and its founders, directors or members may never directly or indirectly obtain a capital profit from the ASBL. Profits may not be dis - tributed. Non-profit associations have a limited tax base and are subject to a favourable tax regime, as long as they do not carry out commercial activities. Public Interest Foundations A public interest foundation is a foundation whose dis - interested aim is to carry out a work of a philanthropic, philosophical, religious, scientific, artistic, educational or cultural nature. The articles of association of a pri - vate/public interest foundation must be set out in a notarial deed. The public benefit nature of a foundation is recognised by Royal Decree, so the exposure of such a founda - tion is important. In addition, as with private foundations, public interest foundations are subject to a special tax regime.
• the children of the partner. 9.2 Same-Sex Marriage
Under Belgian law, marriage between two people of the same sex is fully equivalent to marriage between opposite-sex partners. Everything is treated the same, including tax returns, inheritance rights, divorce pro - ceedings and co-parenting.
10. Charitable Planning 10.1 Charitable Giving
There are reduced rates of gift and inheritance tax for gifts or legacies made to associations or foundations, provided they meet certain conditions. In terms of income tax, gifts made to associations or foundations that meet certain criteria are also deduct - ible. 10.2 Common Charitable Structures Belgium has several structures that are used for char - itable planning, such as the private foundation, the non-profit association (ASBL) and the public interest foundation. Private Foundations The private foundation is a wealth planning tool that has been widely used for several years now. It was introduced by a law of 2002 and was reformed in 2019 with the adoption of the Code of Companies
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