Different treatment of interest derived by Luxembourg PE of Belgian enterprise, and by Luxembourg fixed base of Belgian professional, under Belgium-Luxembourg treaty not incompatible with equality principle of Belgian constitution

On 1 February 2006, the Belgian Constitutional Court (Arbitragehof/Court d'Arbitrage) decided on the different taxation of interest on debt claims derived by a Luxembourg permanent establishment (PE) of a Belgian enterprise, and by a Belgian professional who has a fixed base in Luxembourg, under the Belgium-Luxembourg income and capital tax treaty of 17 September 1970 (the treaty). A preliminary ruling was requested by the Court of First Instance Aarlen on 9 February 2005.

(a) Fa…