Capital gains tax: complicated operational implementation
3 min Reading time
The financial sector is concerned about the complexity of implementing the reached political agreement on the introduction of the capital gains tax. Given the enormous responsibility imposed on banks for the calculation, collection, and remittance of this tax, it must be implemented with complete precision and accuracy. The practical implementation of such a complex measure requires thorough preparation, significant IT adjustments, and careful coordination with the government.
From the initial information we have received, it appears that policymakers are proposing a bill that is simply not operationally feasible to implement by the proposed deadline of January 1, 2026.
What we are reading today is a very complex measure from a technical point of view that imposes an almost impossible task on banks. The combination of:
- a requested implementation deadline of January 1, 2026;
- unprecedented complexity: with the option for citizens to work via direct withholding by financial institutions or via certification by financial institutions to the tax administration, two different systems are introduced, leading to enormous additional complexity in IT developments;
- and the retention of the Reynders tax, which involves particularly complicated calculations and creates a system where double taxation cannot be excluded in certain cases.
The final legislative texts will not yet be available for several months, but the banking sector is still expected to set up the calculation, collection, remittance, and reporting of this complex tax – with utmost precision and from their own resources – in less than 6 months. Additionally, bank employees will need to be trained to adequately answer the many questions from customers.
The sector therefore urgently requests a constructive dialogue on the implementation modalities that do justice to the complexity of the tax and the expectations of citizens. This should allow for a realistic implementation timeline and a clear transition arrangement.
The banking sector is willing to play its part. But this is only possible within a legal framework that is workable and feasible. Only in this way we can contribute to a fair system that not only supports policy goals but also recognizes operational reality. As it stands today, the sector fears that this policy measure is not feasible within the proposed timeline.
