Belgium: Taxation of non-resident investment companies
Reference
On 25 October 2012, the Court or Justice of the European Union (CJEU) ruled that the difference of income tax treatment between Belgian resident investment companies and non-resident investment companies with no permanent establishment in Belgium constitutes a restriction on the freedom of establishment and free movement of capital, as stipulated in the Treaty on the Functioning of the European Union and the Agreement on the European Economic Area.
The Belgian Government has not yet commented on the decision of the CJEU. It is expected that the Belgian tax law will be amended in order to treat domestic and foreign UCITS equally.
Non-resident investment companies should contact their legal/tax advisors for further assistance with regard to the possibility to reclaim withholding tax.
We will advise in due course of any decision taken by the Belgian government.
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