The Court ruled in March last year that Belgium violates the free movement of workers because non-residents who earn less than 75 percent of their income in Belgium cannot deduct alimony payments from their taxable income. The deduction is also denied when the taxpayer has no significant taxable income in the state of residence, which prevents them from making alimony contributions in any country.
The Commission opened a new infringement procedure on Friday because our country is not properly complying with the judgment. Belgium has two months to answer the letter of formal notice satisfactorily. If not, the Commission can refer the case back to the Court, this time with a request for financial sanctions.