Press Release: Direct Taxation: Commission requests Belgium to end discrimination against foreign charities

The European Commission has sent Belgium a formal request to end discrimination against foreign charities. Belgium allows tax relief for gifts to charities, on condition that they are established in Belgium. Charities in other Member States are excluded from the relief. The Commission considers that this discrimination is contrary to the free movement of capital guaranteed by Article 56 of the EC Treaty. The request is in the form of a ‘reasoned opinion’ under Article 226 of the EC Treaty. If Belgium does not reply satisfactorily to the reasoned opinion within two months the Commission may refer the matter to the European Court of Justice.