ExxonMobil sets up pension fund in Belgium
On a proposal from the Minister of Finance Johan Van Overtveldt, new legislation entered into force at the end of last year, aimed at boosting Belgium’s attractiveness as a place of establishment towards pan-European pension funds. The effects of this policy have already been felt, with ExxonMobil being the most recent company to have a pan-European pension fund established in Belgium.
Payments made by pan-European pension funds established in Belgium to non-residents are exempted from payroll tax in cases where pensioners have no affiliation with Belgium.
Although most non-residents enjoy payroll tax exemptions, many multinationals were deterred from the administrative burden of obtaining such exemptions. This problem has now been solved.
The government has implemented attractive ‘cross-border pension fund regulations’, setting up an opportune context for pan-European pension funds to settle in Belgium.
The establishment of pan-European pension funds also has a direct and an indirect impact on the creation of additional employment in specialised functions such as actuarial, accounting and legal assistance functions, compliance, risk and asset management.
In 2016, there were fifteen pan-European pension funds established in Belgium. Today, their number has risen to twenty.
Minister of Finance, Johan Van Overtveldt: “Belgium has been a forerunner in the implementation of a European directive regarding European pension funds and has now become one of the main centres for these funds. ExxonMobil’s decision confirms that our approach to promote Brussels as a financial centre is paying off abroad. By focussing on specific activities such as pension funds, insurance, market infrastructures and FinTech (innovative financial technology), progress is being made in broadening the financial landscape in Brussels and in strengthening Brussels’ position as a financial centre.”