Savings Deposits: Belgium Sentenced by the Court of Justice


Interest arising from a regulated savings deposit up to an amount of EUR 1.250 per annum (read: EUR 1.880 for tax year 2014) is not considered as movable income subject to Belgian taxation provided amongst other conditions, that the interest is the result of a savings deposit held with a financial institution established in Belgium (Art. 21, 5° of the Belgian Income Tax Code).

On 25 June 2009, the European Commission sent Belgium a formal request to amend this legal provision considering that the difference in treatment of interest income resulting from savings deposits according to the place of establishment of the bank violates the free movement of capital and freedom to provide services.

Since Belgium failed to comply with the Commission’s request, the Commission referred Belgium to the Court of Justice of the European Union on 5 May 2010

(EC Case reference number: 2006/4726, see IP/10/513).

Today, what was bound to ensue did happen: Belgium is sentenced by the Court (see C-383/10).