x
Select your language: NederlandsFrançaisEnglish

Income from SCIs no longer subject to double taxation?

This article was written by Hannelore Durieu, Stephanie Vanmarcke.
Contact us for more info at contact@vandelanotte.be.
Tax
For years now, a discussion has been going on with the Belgian tax authorities regarding taxation on income from French SCIs. Whilst in France, this income is qualified as immovable, and - according to the double taxation treaty between France and Belgium - levies tax on it, the Belgian tax authorities maintain that this income is moveable. Since the tax treaty allocates taxation on movables to Belgium, the income from SCIs is therefore subject to taxation a second time in Belgium.  

Recently, the courts of appeal of Mons and Ghent, however, have ruled that the income Belgian tax payers receive from French SCIs must be regarded as immoveable. Both courts have ruled that the distributed profit according to French law constitutes immoveable income. Subsequently, on the basis of the double taxation treaty, they have ruled that the immoveable income is subject to taxation in the source country. Belgium must therefor exempt this income from taxation (subject to progression).   

It remains to be seen in how far the administration will adjust its interpretation to these 2 positive judgements. Our specialists will keep you posted of any further developments. Do not hesitate to contact us should you have any questions in this respect.


Contacteer ons via: contact@vdl.be

This article was written by

We are also active in the following sectors

Only a few of our specialist sectors are listed here. Click here for the complete list.

More news

Changes to the dividends-received deduction and exemption from withholding tax on dividends
recent insight

Changes to the dividends-received deduction and exemption from withholding tax on dividends

With the entry into force of the Belgian Act on Fiscal Provisions on 1 December 2016 (Belgian Official Gazette 8 December 2016), two new provisions have been introduced concerning the dividends-received deduction and the exemption from withholding tax on dividends.

5 FAQs on VAT: as a foreign company in Belgium (1)
recent insight

5 FAQs on VAT: as a foreign company in Belgium (1)

It is noticeable that many companies have the same questions. Over the next five weeks, we will answer one of the five most frequently asked questions every week in this short news series.

Transfer pricing forms in Royal Decree
recent insight

Transfer pricing forms in Royal Decree

The legal requirement to prepare transfer pricing documentation already applies to fiscal years beginning on or after 1 January 2016. However, because the Decree was late in being published, the deadline for completing certain formalities has been extended.

recent insight

Christmas shopping over the Internet - is it possible to return unwanted items?

Throughout the year, Belgian consumers make a huge number of purchases online. It's possible that when your purchase is finally delivered, you might be disappointed and wished that you had never bought the item in the first place. What do you do then?

New double tax treaty between Belgium and Japan
recent insight

New double tax treaty between Belgium and Japan

On 12 October 2016, a new agreement for the avoidance of double taxation was signed by Belgium and Japan.

Complete overview>
Vandelanotte Aalst
AalstGentse Steenweg 55
T: +32 53 72 95 00
Vandelanotte Antwerpen
AntwerpenHerentalsebaan 71-75
T: +32 3 320 97 97
Vandelanotte Brugge
BruggeTorhoutse Steenweg 250
T: + 32 50 39 28 75
Vandelanotte Brussel
BrusselEsplanade 1/85
T: +32 2 427 44 53
Vandelanotte Deinze
DeinzeKastanjelaan 17 bus 2
T: +32 9 381 51 81
Vandelanotte Kortrijk
KortrijkPresident Kennedypark 1a
T: + 32 56 43 80 60
Vandelanotte Tournai
TournaiAvenue de Maire 101
T: +32 69 22 64 95
Zele
ZeleNachtegaalstraat 8/w5
T: +32 52 21 85 07
Menu
Language selection
nlfren