Tax Shelter

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: 

  • Total balance sheet < 350 000 €
    Employees < 10
  • Turnover < 700 000 €

A SME is an enterprise that must meet the following three criteria

  • Total balance sheet < 4 500 000 €
    Employees < 50
  • Turnover < 9 000 000 €

This tax incentive is limited to a total share capital of 250.000 € . 


Currently you can benefit from tax-shelter for the following projects: 

MODS

Little Green Box

Quartier Libre

Lili Bulk 

Cokido


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. 


  • For example, if you earn 40 000 € per year and your income tax rate is 50%, you will have to pay taxes amounting to 20 000 €. If, in the same year, you invest 1000 € in a social micro-enterprise eligible for Tax-Shelter you will benefit from a tax reduction consisting of 45% of the amount invested. This means that 450 € will be reduced from your tax notice. You will have to pay 19 550 € left to pay in taxes. 

This tax advantage is legally limited to 100 000 € of eligible investments per investor.

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 .


Discover your next eligible investment: https://be.lita.co/en/projects

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