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In a ruling decision dated 21 June 2017, the Flemish tax authorities (VLABEL) confirmed that the contribution of real estate into a company to the benefit of a 3rd party indirectly can qualify as a “donation of the shares of a family company” and is thus eligible for a Flemish gift tax exemption. A key condition is that the beneficiary accepts the gift in the underlying notary deed and that the transaction is not predominantly tax-driven.
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