27/03/2015 (Agence Europe) - Dividend taxation in Belgium breaches EU Parent-Subsidiary Directive. On Thursday 26 March, the European Commission sent Belgium a reasoned opinion pointing out that it is in breach of provisions of the Parent-Subsidiary Directive (2011/96/EU), which provides for the non-taxation of profits received by the parent company from a subsidiary established in another member state. The Commission says that at present, Belgian tax rules do not allow income from financial instruments that have been sold, given as security or lent with respect to the parties to agreements on securities or loans in cross-border situations to be deducted from taxable income. The Belgian authorities are asked to amend the legislation in question. The country has two months in which to react, failing which it may be sent to the European Court of Justice. (EL)