becoming a co-op member

financial benefits and conditions

When you decide to invest with Alterfin, you hold one or more shares in Alterfin’s capital. This entitles you to financial benefits and to take part in the decision-making process at the Annual General Meeting.

Investing as an individual

As an individual, you can buy “B” shares in Alterfin, which cost 62.50 euros each. There are no entry or exit fees. Subject to certain conditions, these shares give you the right to:

  1. A 5% tax deduction
  2. A potential annual dividend
  3. An exemption from and/or a reduction in the withholding tax on dividends

investing as a company

As a legal entity, you can buy “A” shares in Alterfin, which cost 250 euros each. There are no entry or exit fees. Subject to certain conditions, these shares give you the right to:

  1. A potential annual dividend
  2. A reduction in the withholding tax on dividends

financial benefits

A 5% tax deduction

A tax deduction of up to 340 euros for an investment of 6,812.50 euros

As an individual, when you invest in a recognized development fund like Alterfin, you are entitled to a tax deduction. In other words, if you meet the requirements for this deduction, the tax authorities will deduct 5% of the amount you have invested in the past year from your overall tax bill.

What are the conditions?

This tax deduction is subject to several conditions:

  • You must be a natural person and reside in Belgium.
  • You must pay taxes. If you don’t pay taxes, understandably, you aren’t entitled to a tax deduction.
  • You must invest at least 437.50 euros during the year for which you request a tax deduction. This equates to 7 shares, each costing 62.5 euros.
  • The tax deduction cannot exceed 340 euros in 2024. This equates to an investment of 6,750 euros, or 108 shares. Although you can invest more, you won’t be able to request any additional tax deduction.
  • You must hold your shares for an uninterrupted period of at least 60 months, except in the event of your death.
How does it work?
  • The year after you invest, Alterfin will send you a tax certificate, confirming your right to a tax deduction and specifying the amount.
  • If you’ve opted for an electronic tax return, the amount to be deducted will be shown in the box marked 1323-25 or 2323-25 (section X.II, letter M). If that’s not the case, you can fill it in yourself. Make sure that you specify the amount to be deducted (5% of the invested amount).
  • If you hold your Alterfin shares for less than 5 years, you are not eligible for the full deduction; this will be reduced, depending on how long you have held the shares. You’ll have to repay a proportion of the full deduction, depending on how many months remained before you would have reached the 60-month milestone. This repayment will be made via your tax statement for the year in which you sold your shares.

A potential annual dividend

Every year, Alterfin presents its annual accounts at its Annual General Meeting, which you can attend as a co-op member.

Depending on the profits made, the Annual General Meeting can decide whether or not to pay a dividend. As a co-op member, you can vote on this decision. For 21 out of 22 years. Alterfin has been able to distribute a dividend to its co-op members.

What are the conditions?

Your dividend amount is calculated based on the number of days you held your Alterfin shares during the year in question.

For instance: you subscribed to Alterfin shares on 1 April 2023. These shares will entitle you to 75% of the dividend for 2023, because you’ve held the shares for three quarters of that year. If you hold these shares for all of 2024, you’ll be entitled to 100% of the dividend for that year.

How does it work?

You don’t have to do anything. The dividend amount is decided at the Annual General Meeting. The maximum dividend that can be distributed is 6% of the nominal value of the shares. Alterfin calculates the amount you’re entitled to and pays it into your individual Alterfin account, after deducting the withholding tax.

You can then choose one of three options:

  • Invest your dividend in new Alterfin shares
  • Transfer your dividend to your bank account
  • Donate your dividend to the Alterfin Guarantee Fund

Here are the dividends that have been paid annually by Alterfin:

  • 2023: 1%
  • 2022: 1,25%
  • 2021: 1,25%
  • 2020: 0,50%
  • 2019: 1,00%
  • 2018: 1,00%
  • 2017: 1,00%
  • 2016: 0,00%
  • 2015: 1,75%
  • 2014: 1,50%
  • 2013: 3,00%
  • 2012: 3,35%
  • 2011: 3,75%

An exemption from the withholding tax on dividends

As an individual, you’re entitled to a tax break on all your investments in shares. This takes the form of an exemption from the withholding tax. In other words, you can claim back the withholding tax deducted from your first 800 euros of dividends.

What are the conditions?
  • You hold shares (whether in Alterfin or another company).
  • You have received dividends for which the withholding tax has been deducted at the source.

The exemption relates to the withholding tax levied on the first 800 euros of dividends (amounts for 2023 and 2024) for all shares.

For example: You’ve received a net dividend of 800 euros for your investment in Alterfin.

  • If these 800 euros were subject to the 30% withholding tax, you can reclaim  240 euros of the deducted withholding tax.
  • If you benefited from a reduced withholding tax of 15% (see below), then you can reclaim 120 euros of the deducted withholding tax.
How does it work?
  1. Every year in June, you receive a dividend certificate from Alterfin. This certificate mentions the amount of the withholding tax for your dividends.
  2. In your online tax return, enter the amount of withholding tax paid on the dividends received from your investments (not just from Alterfin) in the box marked 1437 (section VII, A, 1, b). Since you can only claim back the withholding tax on your first 800 euros of dividends, you should prioritize the highest rate of withholding tax (30%) in your tax return.
  3. our exemption from the withholding tax will be deducted from the total amount of your taxes when your tax assessment notice is issued.

A reduction in the withholding tax on dividends

In addition to the possibility to reclaim the withholding tax levied on your dividends, you are also entitled to a reduced rate of withholding tax. If you hold your Alterfin shares for several years, the reduced rate can be 15% or 20% (instead of 30%), depending on how long you have them in your possession.

What are the conditions?

This reduction applies to natural and legal persons residing in Belgium. It applies to Alterfin shares acquired after 1 July 2013.

You simply need to have held your shares for more than a year after the year in which you invested. In short:

- The year you invest: 30% withholding tax

- The second year you hold shares: 30% withholding tax

- From the third year you hold shares: 20% withholding tax

- From the fourth year you hold shares: 15% withholding tax

For example: you invested in Alterfin shares in 2020. The withholding tax will be:

- 30% on your dividends in 2021

- 30% on your dividends in 2022

- 20% on your dividends in 2023

- 15% on your dividends in 2024

How does it work?

You don’t have to do anything. Alterfin will calculate the amount of the withholding tax based on your individual circumstances. You’ll find the details of the calculation on the dividend certificate that we’ll send you annually in June.

CONSULT THE INFORMATION NOTE

Investing in cooperative shares at Alterfin involves certain risks. Investors are exposed to the risk of losing all or part of the investment. Before buying shares, potential investors should carefully read the information note.

What if I don’t want to be a co-op member anymore?

If you want to stop investing in Alterfin, you can request a total or partial refund of your shares during the first sixmonths of the year.

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