Press Release: Direct taxation: The Commission decides to refer Belgium to the Court over discriminatory taxation of inbound dividends

The European Commission has decided to refer Belgium to the European Court of Justice for its discriminatory taxation of dividends paid by foreign companies to Belgian private investors (inbound dividends). Under the Belgian tax system, there is no double taxation for domestic dividends while there is for inbound dividends. The Commission considers that this difference in treatment is contrary to the freedom of establishment and the free movement of capital, guaranteed by the EC Treaty.