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.

Please click here for more information.

If you have any questions, please do not hesitate to contact Henk Vanhulle (+32 2 501 91 58), Nikolaas Van Robbroeck (+32 2 501 95 56), David Ballegeer (+32 2 501 95 93) or your usual Linklaters contact.

Download entire issue (as pdf)