Contribution of shares

Contribution of shares, one way of releasing current and future cash assets from a company.

This is where one or more individuals resident for tax purposes in Belgium contribute the shares they hold in one or more operating companies to an existing or purpose-founded holding company.

The potential benefit of the operation is that cash assets up to the full amount of the holding company’s capital (comprised of the stock contribution) can be taken out of the target company tax-exempt and without social security contributions being deducted.

This can yield substantial tax savings of at least 25%/15% of the sums involved.

Contribution of shares is possible only in specific sets of circumstances, and there are some conditions to be met.

The entire Deprince, Cherpion & Associates team is at your service for a preliminary feasibility study of your particular case.