Belgium told to revise taxation of property income

Belgium told to revise taxation of property income

The European Commission has officially asked Belgium to revise its taxation of property income from sources outside Belgium.

The Commission notes that Belgian tax legislation currently provides different ways of assessing income from property assets. It explains that income from abroad considered for the purposes of taxation is assessed at around 50% of the market value, whereas domestic property income is assessed by another method, giving a lower level of around 20-25% of the market value.

Therefore, the method for evaluating the level of property income from abroad for tax purposes is less favorable than that applied for evaluating the level of property income, getting in Belgium, the EC points out.

The Commission considers this practice discriminatory and contrary to European Union legislation (article 63 of the Treaty on the Functioning of the European Union).

The Commission asked Belgium officially to correct its legislation within two months.

In the absence of appropriate action within specified timeframe, the Belgium case will be transferred to the European Union Court of Justice. The Commission noted that Belgium has right freely choose measures to resolve situation.

 

Source: http://www.tax-news.com/news/Belgium_Told_To_Revise_Taxation_Of_Property_Income____54649.html