The Belgian Ruling Committee (the authority for advance rulings) issued three rulings in late 2009 relating to the tax treatment of payments made by a trust to a beneficiary during the life of the settlor. Those rulings, which have just been published on the committee’s website, offer insights into the position of tax authorities in a country that does not have a trust concept.
As a typical civil-law country, Belgium does not have the concept of a trust. Moreover, Belgium has not signed the Hague Convention of July 1, 1985, on the Law Applicable to Trusts and on Their Recognition. The Private International Law Code adopted in 2004 dealt with the concept for the first time. (read the full article).