Belgium: Clarifications on the procedure for withholding tax reclaims
LuxCSD1 informs clients that, following the previous announcement, Belgium: Decision of the Constitutional Court on the limitation period for claiming refund of excess withholding tax, the Belgian tax authorities have reaffirmed their interpretation of Article 368 ITC92, providing important clarifications regarding the reclaim of undue withholding tax (WHT) on the following items:
Through Circular Letter 2025/C/56, the Belgian Tax Administration confirms that the five-year statute of limitations under Article 368 applies solely to administrative reclaim procedures. Legal proceedings are admissible only if preceded by an administrative reclaim filed within this period. Actions initiated without such a reclaim will be considered inadmissible, regardless of timing.
Although this clarification provides procedural guidance, legal uncertainty remains, as administrative circulars do not bind the judiciary. Courts may still reject claims filed after the five-year period based on prior case law. A legislative amendment with retroactive effect would be welcomed to align judicial and administrative practices.
Stakeholders are advised to monitor developments closely, and further updates will be communicated should the Belgian legislator take steps to formalise this position in law.
Impact on clients
Clients seeking to recover Belgian-sourced WHT must ensure that an administrative reclaim is filed within the five-year period before initiating legal proceedings. Failure to do so will result in inadmissibility of the court claim.
LuxCSD does not provide assistance with legal proceedings. Clients are advised to consult their own tax advisors for guidance and representation in such matters.
Further information
For further information, please contact Clearstream Client Services or your Relationship Officer.
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1. LuxCSD refers to LuxCSD S.A., registered office at 42, Avenue J.F. Kennedy, L-1855 Luxembourg, registered with the Luxembourg Trade and Companies Register under number B-154.449.