Received Dividends from France? Tax Authorities (Finally) Accept the Credit of FBB… Or Not Quite?
21/11/2025
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Do you receive dividends or interest from France? Then a standard 12.80% withholding tax is deducted there. In Belgium, you must declare this French net income again in your personal income tax return. This is taxed at 30%, unless your Belgian bank has already withheld the withholding tax.
The double taxation treaty between Belgium and France provides that a credit may be applied via the so-called Fixed Foreign Portion (“FBB”). The credit amounts to 15% of the net amount of the dividend (i.e., after deduction of the French withholding tax). Since the double taxation treaty takes precedence over domestic Belgian law, this FBB must be applied.
Below, we would like to clarify the difference with an example:
| Without FBB | With FBB | |
| Gross Frans dividend | 100,00 EUR | 100,00 EUR |
| French withholding tax | – 12,8 % | – 12,8 % |
| Net Frans dividend | 87,20 EUR | 87,20 EUR |
| Belgian withholding tax | – 30% | – 15% (30%-15%FBB) |
| Net dividend in Belgium | 61,04 EUR | 74,12 EUR |
The procedure for reclaiming the FBB was not clear and differed depending on whether or not the dividends were included in the personal income tax return. The tax authorities were of the opinion that the FBB could only be applied when the dividends were indeed declared in the personal income tax return.
However, the Court of Cassation has repeatedly ruled that the FBB can also be applied when the French dividends have been subject to withholding tax in Belgium but were not declared in the personal income tax return (system of the liberating withholding tax).
New circular of 17 October 2025
On 17 October 2025, the tax authorities issued a circular regarding the application of the FBB on French dividends. In this, the tax authorities finally follow the case law, which is good news for private investors with French dividends.
From now on, they accept the application of the FBB, even if the dividends were not included in the personal income tax return. It is important, however, that as a taxpayer you can prove that a (withholding) tax was deducted in France in order to benefit from the FBB in Belgium.
What to do in the future
As mentioned earlier, the procedure for reclaiming the FBB is not clear and depends on the situation. The FAQ accompanying the circular lists the following 5 cases and what, according to the tax authorities, can still be applied:
- French dividends were not declared in the personal income tax return because a Belgian bank withheld liberating withholding tax: then the application of the FBB can be requested within 5 years from 1 January of the year in which the withholding tax was paid (art. 368 WIB92).
- French dividends were declared in the personal income tax return but the FBB was not granted: then an objection can be filed within 1 year after the assessment notice was sent (art. 371 WIB92).
- For French dividends without a Belgian intermediary, you must declare the dividends in the personal income tax return and request the application of the FBB. The FBB is automatically credited, and if this does not happen, an objection can be filed within 1 year (art. 371 WIB92).
- Objection period expired: according to the tax authorities, no ex officio relief can then be granted to go back up to 5 years (art. 376 WIB92). The tax authorities state that there is no double taxation, but there is case law that contradicts this. Again, it is a matter of waiting for a ruling from the Court of Cassation so that the tax authorities will also comply. There is indeed double taxation, and the double taxation treaty is international law that takes precedence over national law.
- Previous objection rejected: in that case, the decision can only be challenged through legal proceedings.
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