"VVPRbis" for (limited) partnership established before 1st May 2019

Conditions

If you want to make use of the reduced rate of tax at source, you have to satisfy certain conditions:

• It has to relate to a small business for the assessment year associated with the taxable period in which the capital contribution was made
• The dividends must come from new (not preferred) registered shares
• Those shares must have been acquired with new contributions in money on or after 1st July 2013
• The shares must be in continuous full ownership of the original shareholder
• The capital for which the shares were issued must have been fully paid before it is decided to pay a dividend.

What about the (limited) partnership established before 1st May 2019?

Before the implementation of the "Wetboek Vennootschappen en Verenigingen" [WVV or Companies and Associations Code], there was also the condition that the company had to have a capital of at least € 18,550. As a consequence of the introduction of the new Code, this condition was abolished.

The consequence of this was that companies that were established between 1st July 2013 and 30th April 2019 without a minimum capital of € 18,550 could not make use of the VVPRbis scheme for lower tax, while companies that were established on or after 1st May 2019 without a minimum capital of € 18,550 could. 

Changes for dividends granted on or after 1st January 2022

As a consequence of a recent change to the VVPRbis legislation at the start of 2022, it was assumed that companies that were established between 1st July 2013 and 30th April 2019 without a minimum capital could, after all, apply the VVPRbis scheme. This was recently confirmed by the Minister of Finance. In answer to a parliamentary question, the Minister stated that a partnership established after 1st July 2013, but before 1st May 2019, with a capital of just € 2,000 could nevertheless still make use of the VVPRbis scheme in respect of dividends granted on or after 1st January 2022.

Conclusion

We have decided, based on the Minister’s answer, that a partnership that was established between 1st July 2013 and 1st May 2019 with a contribution of less than € 18,550, can still pay out a dividend on or after 1st January 2022. The other conditions that apply to the VVPRbis (see above) still have to be satisfied, of course, such as the full payment of the contribution.

If you have any questions regarding the application of the VVPRbis scheme, don’t hesitate to get in touch with us.