Belgium and European Union: Court of Appeal Antwerp requests preliminary ruling from Constitutional Court on compatibility with Belgian constitution of the taxation of a pension lump sum at a special rateJanuary 15, 2013
On 18 December 2012, the Court of Appeal Antwerp requested a preliminary ruling from the Belgian Constitutional Court (Cour Constitutionelle/Grondwettelijk Hof) in M.V. vs. Belgische Staat (No. 5549).
The case concerned the compatibility with Belgian Constitution of the fact that pensions received as a lump sum are taxed at a special rate of 16.5%, while pensions received in monthly installments are taxed at progressive rates.
The court requested a preliminary ruling on the following question (author’s unofficial translation):
“Does Article 171 of the Belgian Income Tax Act (ITA) in relation with Article 130 ITA infringe articles 10 and 11 (non-discrimination) of the Belgian Constitution because pensions received in the form of a lump sum are taxed at a rate of 16.5%, while pensions which are received in monthly installments are taxed at progressive rates?”
©copyright IBFD. This article is part of a selection of daily news from the IBFD Tax News Service (TNS) chosen by Ernst & Young professionals. All rights to the content reside with IBFD. Any use requires IBFD’s prior permission in writing. IBFD´s disclaimer applies to any and all of IBFD’s articles and publications.