Tax Treaty Case Law around the Globe 2025

Jean-Philippe Van West

1. Introduction

In its judgment of 19 January 2024, the Belgian Court of Cassation (hereinafter the Court) addressed the interpretation of Arts. 18 and 19 of the tax treaty between Belgium and Germany (hereinafter: the Treaty) dealing with pensions and governmental payments. The case concerned H.A. who was a former municipal secretary who moved to Germany and acquired German nationality after terminating his professional career in Belgium. He received a Belgian pension linked to his former employment upon retirement. Based on a new interpretation expressed in a Circular Letter following changes in domestic law, the Belgian Administration changed its position. It held that the pension qualifies as being paid under Belgium’s social security laws and is hence taxable there according to Art. 19(3) of the Treaty.

S. 2202. Facts of the case

H.A. worked as a municipal secretary in Raeren which is a town located in Belgium’s German-speaking community. He became entitled to a pension from the Belgian State upon retirement. H.A. moved his residence to Germany on 28 March 2006. Several years later, on 23 September 2009, he acquired German nationality and withdrew his Belgian nati...