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 EY 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.