The European Commission last Thursday called on Belgium to amend legislation under which Belgian residents with both Belgian and foreign income are discriminated against by not benefiting from a full deduction of personal and family allowances.
The Commission considers that this limited deduction of personal allowances is contrary to the EC Treaty. The European Court of Justice has already ruled on this issue in a case concerning the Netherlands (Case C-385/00 "De Groot").
If Belgium does not reply satisfactorily to the reasoned opinion within two months the Commission may refer the matter to the European Court of Justice.
"The European Court of Justice has ruled very clearly on how the exemption with progression method should be applied. Every Member State should follow the ECJ interpretation." explained EU Taxation and Customs Commissioner László Kovács.
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