Under Belgian corporate income tax law, Belgian taxpayers can, under conditions, benefi t from a 95 % deduction on dividends received (« DRD »). One of the conditions which are currently provided by Belgian domestic law is that the participation held in the dividend distributing company must constitute a « fi xed fi nancial asset ».

This implies i.a. that the shareholding must result in a lasting and special relationship that contributes to the activity of the dividend distributing company.

However, since the European Commission considered this condition of « fi xed fi nancial asset » incompatible with the EU Parent-Subsidiary Directive, the Belgian legislator is now envisaging to abolish the condition with retroactivity from January 1, 2011.