2023-07-14 12:41:00
The European Commission is threatening to sanction Belgium for failing to comply with an EU Court of Justice ruling on the tax deductibility of non-resident maintenance.
The Court considered that Belgium did not respect the European treaties by refusing non-resident taxpayers who earn less than 75% of their income in Belgium to deduct their maintenance payments from their taxable income. The deduction is refused in Belgium even when the taxpayer has no significant taxable income in the State of residence, which means that he cannot deduct the alimony in any country.
The European Commission has opened a new infringement procedure on the grounds that Belgium has not correctly complied with the judgment. The country will have two months to respond satisfactorily to the letter of formal notice. Otherwise, the Commission will be able to refer the case to the Court once more, this time asking for financial penalties.
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