Subject-to-Tax Clauses in Belgian Tax Treaties – “Exemption Vaut Impôt” Doctrine Rejected Again in Case Law

This article discusses a recent judgement of the Mons Court of First Instance which rejects the “exemption vaut impôt” doctrine when interpreting the relief provision in the Belgium-Lithuania Income Tax Treaty (1998). This judgement confirms the prevailing view that the “exemption vaut impôt” doctrine should generally not be applied in a treaty situation.