The Belgian Finance Minister has clarified that the 15 percent favorable rate of withholding tax, levied on income derived from regulated savings deposits, is to remain in place despite a recent ruling from the country’s Constitutional Court, partially annulling the tax break.
According to the Finance Minister a proposed solution to this issue would preserve application of the 15 percent withholding tax rate for income from interest.
The 15 percent tariff is imposed on interest derived from regulated savings deposits above a tax-free threshold of EUR1, 900. Below this figure, interest is exempt from withholding tax. The Belgian Constitutional Court and the European Union Court of Justice have deemed the regime to be discriminatory.
