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Home News & Events TAX NEWS: Belgium to address its Additional Taxation of Certain Types of Income from Capital

TAX NEWS: Belgium to address its Additional Taxation of Certain Types of Income from Capital

Sunday, 27 November 2011 22:48

Notwithstanding that Belgium has amended its fiscal legislation earlier this year in May, to reflect the ruling of the European Court of Justice of 1 July 2010 in ‘Dijkman and Dijkman-Lavaleije’, Case  C-233/09, on the 24, November 2011, the EU Commission has formally requested Belgium through an further reasoned opinion, to carry out yet other amendments to its legislation which contemplates additional taxation of certain types of income from capital deriving from outside the European Economic Area (EEA) and not collected by an intermediary established in Belgium. The same income paid by an intermediary established in Belgium is subject only to withholding tax.

Non-EEA-source portfolio dividends and interest which have not been collected by an intermediary established in Belgium remain liable to the additional taxation which is deemed to be in breach of Article 63 of the Treaty on the Functioning of the European Union (TFEU) which specifically prohibits any restriction on the movement of capital or payments between Member States as well as between Member States and non Member States.

For the most up-to-date general information on the infringement proceedings initiated against Member States, vide: http://ec.europa.eu/eu_law/infringements/infringements_en.htm