A strong tax incentive to invest in young enterprises that is today available to crowdfunding platforms.
What is the Tax Shelter?
The Tax Shelter is a preferential tax framework that allows private taxpayers in Belgium to deduct 30% to 45% of the amount of their investment in shares or bonds in an SME or micro-enterprises from their tax notice.
Since February 2017, this tax incentive has been available to crowdfunding platforms and therefore to impact investors that invest through LITA.co. The scheme forms part of the “start-up plan” framework adopted by the Belgian government which includes various measures intended to support the creation and growth of start-ups and scale-ups as well as small-to-medium enterprises in Belgium.
Which companies are eligible?
The company must qualify as an SME or micro-entreprise*, operating and having its registered office in Belgium, and it must have been set up no more than four years ahead of the date of the investment.
*A micro-enterprise is an enterprise that must meet the following 3 criteria:
A SME is an enterprise that must meet the following three criteria
This tax incentive is limited to a total share capital of 250.000 € .
Currently you can benefit from tax-shelter for the following projects:
How does the Tax Shelter work?
When you invest in a LITA.co project that is “eligible for tax-shelter” you can deduct up to 45% of your investment on your next tax notice.
The financed company undertakes to provide you with all the necessary documents to support your claim for tax reduction and LITA.co ensures that these are available on your account on the platform.
You can then directly apply for your tax reduction for the current year by mentioning, in your tax declaration, the amount of eligible investments made.
Please not that an application for tax reduction must be made in the same tax year relating to the taxable period during which the start-up increased its capital. The date of the capital increase is the date of the closing of the crowdfunding campaign on LITA.co .