Belgium: Statutory deadlines for standard refund applications
We hereby remind customers of Clearstream Banking1 that the statutory deadlines for reclaiming tax over-withheld at source on Belgian securities are, according to the provisions under Article 368 of the Belgian Income Tax Code, as follows:
- For payments made after 1 January 2011: five years as of 1 January of the year in which the tax withheld was remitted to the Belgian Treasury. Example: payment of 15 March 2011 – deadline 31 December 2015;
and
- For payments made before 1 January 2011: five years as of 1 January of the year following the year in which the respective payment took place. Example: payment of 15 March 2010 – deadline 31 December 2015.
Background
The Circular Letters published in 2013, after the judgment of the EU Court of Justice against Belgium in the Aberdeen and Tate & Lyle cases, indicate that the deadline for reclaiming tax over-withheld before 1 January 2011 is set at five years. The Circular Letters also provide references that give the legal grounds for this five-year statute of limitations but do not stipulate precisely the date from which the five-year period is to be deemed to start.
However, market participants may expect the Belgian Tax Authorities to adopt an approach similar to the rule applied for withholding taxes paid as from 1 January 2011.
Clearstream Banking deadline for the submission of reclaims
We strongly recommend that customers, for the sake of safety, file all reclaims (regardless of whether the respective payment took place before or after 1 January 2011) taking into account the more conservative approach, on the assumption of a five-year statute of limitations starting from 1 January of the year in which the withholding tax was remitted (that is, for payments made in 2010, before the end of 2014).
Our Belgian depository, BNP Paribas Securities Services, has informed us that, for payments made in 2010, they take the more conservative approach and failure to provide the relevant valid tax reclaim documentation before the end of 2014 will result in the rejection of the reclaim application.
Customers are reminded that documentation must be received by Clearstream Banking at the latest two months before the above statutory deadline.
Note: With respect to tax reclaims in general, customers are reminded that Clearstream Banking accepts no responsibility for their acceptance or non-acceptance by the tax authorities of the respective country.
Further information
For further information, customers may contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or their Relationship Officer.
------------------------------------------
1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF), and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248 (CBL).