Press Release: Direct taxation: The European Commission requests Belgium to end discriminatory taxation of interest paid by foreign banks to individuals

On 25 June, 2009, the European Commission sent Belgium a formal request to amend its legislation which leads to different taxation of interest depending on where the bank paying such interest is established. According to the Belgian legislation, interest paid by Belgian banks to individuals is exempted from tax up to the amount of € 1660 whereas interest paid by foreign banks cannot benefit from the same exemption. The Commission's request took the form of a ‘reasoned opinion’ (second step of the infringement procedure of 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.