Context

Article 131 of the Belgian income tax code provides for a basic tax-free allowance for residents of Belgium and for nonresidents with an abode in Belgium or assimilated. The basic tax-free allowance amounts to EUR 4,095 (for income year 2001: EUR 5,350) for single persons and EUR 3,250 (for income year 2001: EUR 4,240) for each partner of a married couple.

Unmarried cohabitants are currently considered as single persons for Belgian income tax purposes and therefore each benefit from the higher basic tax-free amount of EUR 4,095 (for income year 2001: EUR 5,350).

News

The Belgian Court of Arbitration decided on 6 November 2001 that the above-described different tax treatment of married persons and unmarried cohabitants cannot reasonably be justified and is thus discriminatory. However article 131 of the Belgian income tax code itself is not in breach of the constitutional principle of non-discrimination, but the fact that the Belgian income tax code does not provide specific provisions for unmarried cohabitants means that they are treated as single persons from an individual income tax viewpoint.

It should be noted that the Belgian income tax reform of 10 August 2001 (http://www.taxreform.be for further information) provides for one basic tax-free allowance of EUR 4,095 (not indexed) for all residents of Belgium and all aforesaid mentioned nonresidents, regardless of the family status (single, married or unmarried cohabiting) as from 1 January 2004, so that the current discrimination between married couples and unmarried cohabitants will then end.