New tax treaty between Belgium and France – update
Context
As explained in our headline of 29 October 2003, Belgium and France intend to conclude a new tax treaty for avoidance of double taxation.
News
Recent Belgian (*) and French (**) parliamentary questions have been raised on how far the negotiations have gone and on the future status of the frontier worker system. Frontier workers are currently taxed in their country of residence and not in the country where the employment is carried out, which makes it a generally beneficial system for French frontier workers working in the Belgian frontier zone.
The Belgian and French Ministers of Finance confirmed that to date no agreement has been reached on the contents of this new treaty though in the event that the frontier worker system was to be abolished, this system would be expected to be phased out over a 15 years transition period.
(*) Belgian parliamentary questions
Question nr 3-217, Belgium Senate, 19/2/2004 – http://news.hrservices.be?lk200403071
Questions nr 1201 and 1300, Belgium Parliament, 20/1/2004 – http://news.hrservices.be?lk200403072
Question nr 1494 and 1530, Belgium Parliament, 3/2/2004 – http://news.hrservices.be?lk200403073
(**) French parliamentary question
Question nr 553, French Official Gazette 21/1/2004, p. 550 – http://news.hrservices.be?lk200403074
Posted: March 5th, 2004