Brussels, 20/11/2013 (Agence Europe) - On Wednesday 20 November, the European Commission decided to send Belgium to the European Court of Justice over its tax legislation that infringes the freedom of circulation of capital and discourages cross-border investment.
Belgium applies tax exemptions on some dividends paid by cooperatives and charities, but only if they are registered in Belgium.
Belgian legislation charges withholding tax on interest from debt-claims not represented by securities and paid to foreign investment companies, and on interest relating to securities deposited or registered in an account with financial institutions established outside Belgium. On the other hand, the same interest paid to Belgian investment companies or relating to securities deposited or registered with financial institutions established in Belgium is exempt. (MB/transl.fl)