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EU refers Belgium to court over different tax treatment

Xinhua, June 19, 2015 Adjust font size:

The European Commission has referred Belgium to the court of Justice of the European Union because of its tax legislation which provides for different methods of assessing income from property, according an EU statement on Thursday.

The Commission said that the income a Belgian resident earns from property located abroad is assessed at a higher value than that from comparable property in Belgium.

Belgian law favors investments in certain properties located in Belgium and penalizes taxpayers who choose to invest in similar property in other Member States, the statement said.

Such a difference in tax treatment constitutes an infringement of the free movement of capital guaranteed by the EU law, that's why the Commission is referring Belgium to the Court of Justice of the European Union, the Commission concluded.

The Commission added that the use of a different method of assessment which results in a higher value being attributed to income earned from property located abroad. Endit