Press Release: Direct taxes: The European Commission formally requests Belgium to amend certain provisions on the taxation of dividends

The European Commission formally requested on 28 January 2010 Belgium to change its tax provisions related to dividends received from Belgian investment funds investing all of their assets in real estate ("real estate" SICAF). Belgium limits the exemption from withholding tax to dividends paid by Belgian "real estate" SICAF investing at least 60% of their assets in residential real estate situated on Belgian territory, which results in discriminatory treatment. The request takes the form of a reasoned opinion (second step of the infringement procedure provided for in Article 258 of the Treaty on the Functioning of the EU (TFEU)). If there is no satisfactory reaction to the reasoned opinion within two months, the Commission may decide to refer the matter to the Court of Justice of the European Union.