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Belgian rules for set-off of losses with third-country PE's profits discriminatory

|Approved Changes| Belgium
 Belgium

On 26 October 2007, the Court of First Instance of Brussels held that the Belgian rules for compensation of losses with profits of a foreign permanent establishment (PE) situated outside the European Union are incompatible with the equal treatment (non-discrimination) principle contained in the Belgian Constitution. Details of the decision are summarized below.

(a) Facts. A Belgian company had PEs in Nigeria and Ghana. In 2002, the Belgian company made a loss …

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