Belgian officials recently expressed hope that negotiators will reach an agreement before the end of June on a new double tax treaty with France that would replace the one that dates back to 1964. Discussions started in March, but there are still some unresolved points of contention, particularly relating to the taxation of cross-border workers. (Previous negotiations were blocked by the French delegation in 1998.)

The main issue that Belgian tax authorities have put on the agenda is the abolition of a provision that states that a worker living in the border area of one country, but working across the border in the other country, is subject to tax only in his country of residence. That provision is particularly advantageous for French residents working in Belgium; on average they save about 40 percent in tax. It is estimated that there are about 25,000 French residents working in Belgium, 10 times the number of Belgian residents working across the border in France. (Read the article …)

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