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 rate

January 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?”

icon ©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.

Related content

Belgium and European Union: preliminary ruling requested on higher taxation of interest paid by non-resident banks Belgium and European Union: preliminary ruling requested on higher taxation of interest paid by non-resident banks

On 28 February 2013, reference was made to the Court of Justice of the European Union (CJEU) by the Belgium Constitutional Court (Court Constitutionelle) in …

Belgium and European Union: Court of Appeal of Mons requests preliminary ruling from Constitutional Court on compatibility with Belgian constitution of double taxation of abnormal or gratuitous advantage Belgium and European Union: Court of Appeal of Mons requests preliminary ruling from Constitutional Court on compatibility with Belgian constitution of double taxation of abnormal or gratuitous advantage

On 2 November 2012, the Court of Appeal of Mons requested a preliminary ruling from the Belgian constitutional Court (Cour Constitutionelle/Grondwettelijk Hof) in SA “Société …

Belgium: compatibility of treating notaries and bailiffs as taxable persons for VAT purposes with Belgian Constitution challenged Belgium: compatibility of treating notaries and bailiffs as taxable persons for VAT purposes with Belgian Constitution challenged

On 14 November 2012, the Belgian Constitutional Court (Grondwettelijk Hof/Court Constitutionelle) gave its decision in Case No. 5292 on the compatibility with the non-discrimination principle …

Belgium and European Union: preliminary ruling requested from CJEU on whether Member State may refuse VAT deduction in case of incomplete invoices Belgium and European Union: preliminary ruling requested from CJEU on whether Member State may refuse VAT deduction in case of incomplete invoices

On 1 June 2012, the Cour d’appel de Mons (Mons Court of Appeal) requested a preliminary ruling from the Court of Justice of the European …

Ernst & Young refers to one or more of the member firms of Ernst & Young Global Limited (EYG), a UK private company limited by guarantee. EYG is the principal governance entity of the global Ernst & Young organization and does not provide any service to clients. Services are provided by EYG member firms. Each of EYG and its member firms is a separate legal entity and has no liability for another such entity's acts or omissions. Certain content on this site may have been prepared by one or more EYG member firms.