Belgian authorities recently confirmed through law that the 5-year limitation period for reclaiming excess withholding tax applies solely to administrative refund requests. This removes the need for taxpayers to file court actions just to preserve their rights.
The Belgian Official Gazette published amendments to Article 368 of the Income Tax Code (CIR 92) on December 30, 2025, addressing refund procedures for non-enrolled withholding taxes like professional and investment income tax. These changes align with the Belgian Tax Administration's guidance in Circular 2025/C/56 dated September 10, 2025, which had already outlined the administrative-first approach.
Recent rulings from Belgium's highest courts had raised doubts about whether judicial proceedings also needed to start within those 5 years. The new law settles this by confirming administrative claims alone suffice to keep options open.
The 5-year clock starts January 1 of the year following payment or allocation of the withholding tax, covering only the initial administrative refund process. A timely administrative claim effectively pauses prescription concerns for any later court action, matching long-standing administrative practice.
Taxpayers no longer face pressure to rush parallel court filings to avoid time-bar arguments. Judicial review becomes available after submitting an administrative claim—if authorities fail to decide or reject the request.
Pre-existing direct court filings (without prior administrative steps) remain unaffected and valid under transitional rules.
Claims must reach the tax administration within 5 years via formal administrative procedure. For specific professional withholding tax exemptions (R&D incentives, team-based work, etc.), a shorter 3-year window applies under Article 368/1 CIR 92 from the following January 1.
Once filed properly, taxpayers can pursue courts if needed without prescription risks. Those with pending claims near deadlines should confirm filing dates to secure judicial fallback rights.
Luxembourg funds, including SICAVs, can leverage the Belgium-Luxembourg double tax treaty to seek refunds on excess Belgian withholding tax from dividends or interest. Belgian courts have upheld SICAVs' Luxembourg tax residency in several cases, supporting treaty access despite administrative pushback.
Given ongoing disputes over SICAV eligibility, filing protective administrative claims within Article 368 deadlines remains prudent to safeguard refund potential.
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