Belgian Withholding Tax: What Luxembourg SICAVs Need to Know About Recent Refund Developments

Belgian courts have recently reinforced the position that Luxembourg SICAVs are entitled to reclaim withholding tax (WHT) on Belgian-source dividends under the Belgium–Luxembourg double tax treaty. These decisions represent a significant step forward for investment funds seeking efficient tax recovery and improved returns.

Key court rulings confirm treaty access

Three first-instance decisions issued by the Brussels court between October 2025 and April 2026 confirm that Luxembourg SICAVs qualify as treaty residents and can benefit from reduced WHT rates:

• Two rulings dated October 1, 2025 (French-speaking chamber).
• One ruling dated April 24, 2026 (Dutch-speaking chamber).

In all cases, the courts concluded that SICAVs meet the requirements of Article 4(1) of the double tax treaty, allowing them to reclaim up to 15% WHT on Belgian dividends.

Recognition of SICAV tax status

A central point addressed by the courts is the concept of “liability to tax.” The judges clarified that:

• Effective taxation is not required; being subject to tax is sufficient.
• Luxembourg SICAVs qualify due to their exposure to the taxe d’abonnement, withholding taxes on Luxembourg income, and other domestic tax mechanisms.
• Even if exemptions apply, these do not disqualify SICAVs from treaty benefits.

This interpretation removes a long-standing barrier often used by tax authorities to deny WHT reclaims.

Rejection of administrative barriers

The April 2026 decision also challenged administrative practices in Belgium:

• The court dismissed arguments based on an alleged historical agreement excluding SICAVs from treaty benefits.
• It confirmed that no formal mutual agreement exists under the treaty framework.
• It ruled that excessive documentation requirements imposed on foreign claimants lack legal foundation.

These findings significantly simplify the reclaim process and reduce compliance burdens for funds.

Implications for WHT reclaim strategies

These rulings strengthen the legal position of Luxembourg funds and create new opportunities for recovering withholding tax on dividends. However, tax authorities may still appeal, meaning the situation continues to evolve.

Given the five-year statute of limitations applicable to WHT reclaims in Belgium, investment funds should act without delay to secure their entitlements.

How Globe Refund supports your claims

At Globe Refund, we specialize in cross-border tax reclaim services for investment funds, asset managers, and institutional investors. Our expertise includes:

• Identification of reclaim opportunities on Belgian and European dividends.
• End-to-end WHT reclaim management, including documentation and filing.
• Strategic support aligned with the latest court decisions and tax treaty interpretations.

By leveraging these recent rulings, Globe Refund helps clients maximize recovery on withheld dividends and improve net investment performance.