What is that VAT slip that you usually leave behind in the restaurant ? A little piece of paper with large consequences.(More …)
Recent rulings by the Courts of First Instance of Mons and Brussels have thrown cold water on Belgian tax authorities’ cases against companies it has accused of misusing foreign tax credits to avoid corporate income tax liability.
When a Belgian company receives interest from a foreign source, the payer usually has to withhold tax at source, at rates varying from 0.5 percent to 30 percent. When the company declares the interest it received, it cannot set off the tax withheld by foreign tax authorities against its Belgian income tax bill.
However, Belgium does provide some unilateral relief against that form of double taxation by granting a foreign tax credit1 to companies that can prove that tax has been withheld at source on foreign-source investment income (other than dividends). The foreign tax credit is granted on the assumption that the tax collected at source was 15 percent, regardless of the level of tax actually withheld abroad. (Read the article …)
Belgium has ratified the protocol amending the EU Arbitration Convention by the Act of 23 February 2003, which was published in the official gazette of 30 July 2003.
The EU Arbitration Convention of 23 July 1990 on the elimination of double taxation in connection with the adjustment of profits of associated enterprises expired at the end of 1999. A political agreement was reached in 1998 to extend the convention, and to that end, the EU member states signed a protocol on 25 May 1999.2
After all 15 EU member states ratify the protocol, it will enter into force and extend the convention for further successive periods of five years. Most of the 15 EU member states have ratified the protocol, with the exception of Greece, Ireland, Italy, Portugal, and Sweden. Under article 2 of the protocol, it will enter into force retroactively as of 1 January 2000.(Read the article …)