X/N System and Belgian withholding tax exemption extended to structured notes
A recent Royal Decree has extended the categories of debt securities that can be admitted in the X/N System operated by the National Bank of Belgium (“NBB”). Certain structured securities such as inflation-linked and index-linked notes can henceforward be admitted in the X/N System, provided that the accrued interest can be calculated on the basis of a formula which is acceptable to the NBB (see Royal Decree of 1 July 2013 amending the Royal Decree of 26 May 1994 on the deduction and compensation of withholding tax in accordance with chapter I of the Law of 6 August 1993 in relation to transactions with certain securities, published in the Belgian State Gazette of 9 August 2013).
As a result, the broad Belgian interest withholding tax exemption for securities admitted to the X/N System can be applied to such structured notes, which facilitates direct access to the international capital markets for Belgian issuers.
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