Every co-op member is entitled to an annual dividend (participation in the profits) if the General Assembly decides to pay out a dividend. The dividend is the annual financial compensation for your participation in Alterfin.
If there are profits, these are distributed as follows:
At least 5% of the profits are reserved (statutory requirement). Furthermore it is possible to pay out up to maximum 6% of dividend (art. 6 of the Royal Decree of 8 January 1962). The first portion of 190 euros - per shareholder - of income from capital invested in cooperative societies is exempt from withholding tax (for Belgian taxpayers).
As a consequence of the social objective of Alterfin we do not strive for excessive profits. Still Alterfin want to develop its financing activities according to a sound logic of business economics. We are convinced that this is the best approach to contribute to the development of a financial network in the South.
Tax reduction for Belgian taxpayers
The tax reduction amounts to 5% of the total payments made in the year by an individual to development funds. Every year, you can declare your new investments and benefit from a tax return.
Concretely, if you subscribe in 2021 for example to 96 Alterfin shares (6,000 euros), you will be benefit of a tax reduction of 300 euros for the 2022 taxation year (over the revenue of 2021).
Certain conditions must be met:
- the payments must reach at least 437.50 euros in 2021 (or 7 shares of 62.5 euros).
- the tax reduction is capped at 330 euros in 2021 (for an investment of 6,625 euros).
- the shares must remain in possession of the applicant for a continuous period of at least 5 years (except in case of death).
- the shares are registered under the name of a individual.