Antwerp Diamantaires Willing to Pay Higher Tax in Exchange for Legal Certainty

(IDEX Online News) – A release from the Antwerp World Diamond Centre (AWDC), the umbrella organization of the Belgian diamond industry, has said that local diamantaires are supportive of the government’s decision to introduce a tax system calculated on a lump-sum basis.

Under the new system, diamantaires would be taxed according to a fixed percentage of the turnover, for profits and losses, rather than on a percentage of the profits.

While the new system means that the tax burden on diamond traders will increase, it will ensure stability and legal certainty. “Diamantaires are willing to pay higher taxes in exchange for financial predictability and legal certainty”, says Ari Epstein, CEO of the AWDC.

“Because the new system is a tax on turnover instead of profits, diamond traders know precisely what to expect when they close their financial year,” says Epstein.

The AWDC says that unlike other competing trade centers, the “uncertain and often non-competitive fiscal environment” in Belgium is responsible for the fact that diamond traders often see no reason to realize their turnover and profits in the country.

According to the organization, the new system means that traders will also be able to obtain easier access to financing.