Article rédigé par Daoud Reghif Harraz publié le 29 mars 2021
The question around the French dividend has spilled a lot of ink. Indeed, until now private investors who are resident in Belgium are taxed two times. Firstly, they had to pay 12.8% as a withholding tax that is retained in France. Secondly, they must paid the 30% withholding tax in Belgium and that 30% didn’t take into account the fact that this person has already paid 12.8 % in France. That is a problem because that means that we are facing a double taxation issue.
This problem has already been tackled by the Dutch-speaking section of the Cassation court. In 2017 the judges already says that the Belgian tax administration must set a minimum tax credit (credit d’impot minimum) on the dividends that have already been taxed in France (the QFIE/FTRP). But the authorities haven’t followed this decision[1].
Since then they are hiding behind ongoing proceedings, decreeing that they must wait for some court decisions before legislating. However, in response to a parliamentarian question, on this issue, the Minister of Finance said (once again) that this time he was waiting for a decision of the French-speaking section of the Cassation court This procedure concern a judgment of the Brussels Court of Appeal in which the QFIE was applied and the individual received back the amount of tax that he paid twice. This arrest of the Court of Appeal was already referring to the previous cassation case law[2].
And good news: the long-awaited verdict has arrived. The Court of Cassation once again ruled in favor of the taxpayer[3]. The judges once again concludes that the double taxation treaty concluded between Belgium and France obliges Belgium to grant a QFIE to Belgian residents who receive French dividends (on which French withholding tax has been withheld). The Belgian tax administration has no other choice but to comply with the repeatedly confirmed case law and the Minister of Finance has already announced in the media that he will adjust his vision. In the hallways, we can hear that a CIRCULAIRE will come soon.
Concerning the taxpayers, there will not be an automatic refund, and for the moment, Belgian taxpayers must ask for the refund of the “trop percu” in their tax declaration for the year of taxation 2020.
QFIE = quotite forfaitaire d’impot étranger
FTRP = Foreing Taxes Rate Portion
Sources :