Belgium: Failure to allow deductibility of CFC taxes does not violate obligation to implement ATAD (CJEU Advocate General opinion)

Member states are allowed to adopt stricter measures without undermining ATAD’s objectives.

Share
June 13, 2025

The Advocate General of the Court of Justice of the European Union (CJEU) on May 22, 2025, issued an opinion in case C‑524/23 that Belgium’s failure to transpose Article 8(7) of the EU Anti-Tax Avoidance Directive (ATAD)—which generally requires that foreign taxes paid by a controlled foreign company (CFC) be deductible for domestic tax purposes—does not constitute a breach of its obligation to implement the directive.

The Advocate General found that Belgium's choice to implement Model B of the CFC rules without incorporating the tax deduction required under Article 8(7) aligns with the directive's aim of protecting national tax bases and that minimum harmonization allows member states to adopt stricter measures without undermining the directive's objectives.

Read a June 2025 report prepared by KPMG's EU Tax Centre

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's . Privacy Statement

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline