An increase in withholding tax to 30 per cent, a rise in the stock exchange tax for capitalisation funds to 1.32 per cent, …: the tax burden on ordinary investment funds has risen significantly in recent years. The government’s summer agreement adds three further charges, making the burden even heavier. Investors are thus seeing the total tax burden on their investments rise to as much as 65% in some cases. In addition to the high tax rates, ordinary investments are also struggling with low gross returns, which are further eroded by high income tax.
All of this is prompting investors to look for alternatives. And this is where investment funds in the form of insurance policies quickly come into focus, with Tak23 life insurance standing out as the clear favourite. Such a life insurance policy is much more tax-friendly, as the investor only has to pay a one-off premium tax of 2 per cent on each deposit. Furthermore, investing in a Tak23 product is simpler, and this form of endowment insurance offers the potential to achieve a higher net return.
It’s best not to wait too long before getting on board
Due to the growing tax disparity between a securities account and a life insurance policy, there is a strong likelihood that the premium tax on new life insurance policies will rise from 2018 onwards. Furthermore, anyone taking out a capital insurance policy now will benefit from immediate exemption from withholding tax (30 per cent) and will not be affected by the stock exchange tax (up to 0.29 per cent).
Let us guide you through your wealth planning
However, due to the wide range of options and a lack of transparency, it is very difficult for investors to choose the right endowment policy themselves. Wealth planning has become a complex matter for which it is best to seek expert advice.
As an independent broker with a strong negotiating position with insurers, we are ideally placed to secure the best terms and guide you through your wealth planning.
If you would like a no-obligation consultation with one of our specialists, please feel free to contact your account manager or Paul Vinck (03 420 06 89 of paul.vinck@vandessel.be).
