On 30 December 2025, the Belgian Official Gazette published amendments clarifying Article 368 of the Belgian Income Tax Code, which addresses the time limitation period for claiming refunds of excess withholding tax (WHT). The amendment clarifies that the five-year statute of limitations applies only to the administrative refund claim procedure. As a result, taxpayers are not required to file judicial appeals to interrupt the limitation period. This change aligns the law with the Belgian Tax Administration’s long-standing practice, as reflected in its Circular of 10 September 2025, and removes the uncertainty created by earlier decisions of Belgium’s two highest courts, which had suggested a different interpretation, as discussed in our previous Tax Alert.
Recent development
KPMG comment
The recent case law of the Belgian highest courts created uncertainty on whether the five-year statute of limitations applied only to filing a refund request with the tax administration or also to initiating a judicial action. Therefore, it was unclear whether additional judicial procedure was necessary to interrupt the statute of limitation when filing a withholding tax reclaim.
With the law amendment, effective immediately, the five‑year statute of limitation applies exclusively to the administrative reclaim procedure. Filing a WHT reclaim with the Belgian Tax Administration (a “standard reclaim”) will continue to suspend the limitation period for commencing judicial proceedings, in line with the current practice.
Judicial recourse will be available only after a WHT reclaim has been filed within the five‑year period, and then only where no decision is issued or a decision of rejection is rendered.
Judicial appeals already filed directly in court prior to the entry into force of this law, without a prior administrative reclaim, remain valid.
As a reminder, Luxembourg investment funds may reclaim Belgian withholding tax under the applicable double tax treaty between Belgium and Luxembourg. Although the Belgian tax authorities are currently challenging the application of the treaty to Luxembourg SICAVs, we strongly recommend filing protective claims. Belgian courts have implicitly recognized the tax residency of SICAVs, which supports their eligibility for treaty benefits.
A team of tax specialists and project managers can assist you with filing these WHT reclaims.
