Belgian Net Asset Tax and the Belgium-Luxembourg Double Tax Treaty: Key year-end considerations for Luxembourg SICAVs
05 Nov 2025
The issue of double exposure
Luxembourg SICAVs registered for public marketing in Belgium are subject to Belgium’s annual Net Asset Tax (NAT). Because Luxembourg also levies a subscription tax on the net assets of SICAVs, many funds face double exposure. The key question is whether the Belgian NAT qualifies as a wealth tax covered by the Belgium-Luxembourg Double Tax Treaty (DTT). Under Article 22 of the DTT, wealth is taxable (save exceptions such as real estate and ships) only in the state of residence. If the NAT is a wealth tax covered by the DTT, Belgium would therefore be precluded from levying it on Luxembourg SICAVs.
Where the dispute stands
Belgian case law remains divided, as illustrated by recent rulings:
Supreme Court (French speaking chamber, 25 March 2022): Belgium can levy NAT. The NAT is not a wealth tax for DTT purposes.
Supreme Court (Dutch speaking chamber, 21 April 2022): Belgium can levy NAT. While the NAT is a wealth tax, it does not fall within the DTT’s listed taxes.
Brussels Court of Appeal (four judgments, April 2023): Belgium is precluded. Confirms DTT access for Luxembourg SICAVs, treats NAT as a wealth tax within the DTT scope.
Ghent Court of Appeal (5 November 2024): Belgium is precluded. Confirms NAT as a wealth tax covered by the DTT and allocates taxing rights to Luxembourg. This judgement overturned the judgement of the Supreme Court Dutch speaking chamber).
Liège Court of Appeal (6 November 2024): Belgium can levy NAT. Concludes that NAT is not a wealth tax under the DTT. This judgement follows the Supreme Court’s French speaking chamber.
Appeals are pending against several of these judgments, so jurisprudence remains inconclusive.
Why Luxembourg SICAVs should care
Under current Belgian domestic law, Luxembourg SICAVs registered for public offering in Belgium are expected to comply with NAT filing and payment obligations.
Given the divided jurisprudence and pending appeals, Luxembourg SICAVs may wish to preserve DTT-based positions through protective actions and therefore keep all strategic options open while the litigation evolves.
Recent decisions also reaffirm that Luxembourg SICAVs are covered by the DTT. This may support applying reduced WHT rates (typically 15% instead of 30%) and reclaim the excess Belgian WHT on dividends or interest.
Protective action to be taken before 31 December 2025
Timing is critical for assessment year 2024. A refund request for NAT must be submitted within the applicable limitation period. To be prudent, protective measures to safeguard your rights for NAT paid in 2024 should be taken by 31 December 2025.
To do this, a pragmatic two-step approach is advisable:
For NAT paid in 2024: submit a documented administrative reclaim and lodge a protective judicial petition. The judicial proceedings can be held dormant pending the outcome of pilot cases.
For NAT paid in 2025: submit only an administrative refund request. Following recent procedural changes, an administrative request for restitution suspends the limitation period, and a judicial petition is typically not required at this stage.
For Belgian withholding tax on dividends and interest, consider the DTT rate application and, where applicable, reclaim excess Belgian withholding tax. Excess Belgian withholding tax paid in calendar year 2021 (and in the following years) can be reclaimed until 31 December 2025.
How PwC Legal can assist
PwC Legal Belgium advises Luxembourg SICAVs end-to-end on matters related to NAT and DTT. We determine and document the taxable base, prepare and file NAT returns and refund requests, engage with the Belgian tax authorities on audits, regularisations and individual rulings, and can manage protective litigation where appropriate. Our team also contributes regularly to legal publications on this ever-evolving topic.
Our approach is pragmatic and cost conscious: we safeguard rights, reduce administrative burden, and keep strategic options open while jurisprudence develops.
For a discussion tailored to your fund, please contact:
Luc Buelens
