Corporate tax alert (06/08/2013)

Withholding tax on Belgian source dividends becomes final final tax for Belgian regulated investment companies

The CJEU found the Belgian withholding tax (WHT) regime to go against the fundamental freedoms in two recent judgments: Tate & Lyle (C-384/11) and Commission v Belgium (C-387/11). Previous Corporate Tax Alerts provide more information about these two cases. 

The Belgian legislator has finally adjusted (some of) the discriminatory provisions in the Belgium Income Tax Code. A recent bill, which has been adopted by Parliament and was published in the Belgian Official Journal on 1 August 2013, states that Belgian regulated investment companies will no longer be allowed to obtain a credit and/or a refund of withholding tax paid on dividends received. Following this legislative change, resident and non-resident investment companies will be treated equally and Belgian tax legislation will become compliant with the Commission v. Belgium case judgment.

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Full article  (click on title to open)

Compliance with CJEU judgments (Aberdeen/Commission v. Belgium/Tate & Lyle): withholding tax on Belgian source dividends becomes final tax for Belgian regulated investment companies