Belgium in breach of Anti-Tax Avoidance Directive by denying taxpayers the deduction of corporate income tax paid by controlled foreign companies

23 March, 2026

In its Judgment of 26 February 2026, in Case C-524/23, the Court of Justice of the European Union has ruled that the Kingdom of Belgium has failed to fulfil its obligations under Directive (EU) 2016/1164, by failing to adopt the statutory, regulatory and administrative provisions necessary to ensure taxpayers’ right to a deduction of the tax paid by controlled foreign companies from the corporate income tax liability of the taxpayer.