Financial Centers in Belgium. A comprehensive case study of multinationals’ financial centers in Belgium

This thesis explores the tax regime and environment for financial centers of multinational companies in Belgium. I show that the taxation of such activities have been and still is beneficial in Belgium and conclude that Belgium is an attractive location for financial centers. Also contributing to this is the business environment in Belgium with accommodating authorities and an already established cluster of coordination centers. I present the activities in which the financial centers engage in and the corresponding advantages. Furthermore, I give two examples of multinational companies having established such centers in Belgium, Statoil and Statkraft, and use them to illustrate both the benefits of an independent and centralized financial center per se and the taxation in the Belgian tax regime. Moreover, I evaluate the present regime in light of the current market conditions and explain the reasons for why the regime will continue to ensure advantageous taxation of financial centers. I also illustrate a method for which such centers can exploit differences in tax regimes to create tax arbitrage.