Belgian Court Expands Foreign Inheritance Tax Credit
In a remarkable decision dated June 3, the Belgian Constitutional Court decided that the foreign tax credit for inheritance taxes paid abroad cannot be limited to the inheritance tax on real property. The court ruled that the inheritance tax legislation is discriminatory when it grants a credit for overseas inheritance tax on foreign real property but not for the overseas inheritance tax paid on movable assets situated in another country. Thus, the decision orders the referring court to disregard the law and grant a foreign tax credit for the overseas inheritance tax paid on movable assets.
Belgian Court Expands Foreign Inheritance Tax Credit, Tax Notes international, 9 August 2021, 719