ECJ to Examine Belgian Tax Treatment of Inbound Dividends
The Ghent Court of First Instance has sought a preliminary decision from the European Court of Justice on whether Belgium's tax regime for inbound dividends is compatible with EU law.
Belgian Domestic Law
One of the basic principles of the Belgian income tax system is that a dividend received by a resident individual is subject to a 25 percent withholding tax. That withholding tax is the final tax for the taxpayer, meaning that he does not have to declare the dividend in his tax return.
ECJ to Examine Belgian Tax Treatment of Inbound Dividends, Tax Notes International, 24 February 2005