Since the decision of the ECJ of 12 December 2013 in the Imfeld and Garcet case (C-303/12), Belgian individual taxpayers, obtaining tax exempt professional income, have kept on challenging the administrative solution in respect of the tax allowance for dependent children (Circular AAFisc Nr. 27/2014).
In more recent cases, also this solution (i.e. an additional tax reduction) has been rejected by the Belgian court (i.e. Antwerp, 22 September 2015).
In a circular letter of 18 May 2017 (Circ. 2017/C/31), the Belgian tax administration reconciles oneself with these decisions. It will automatically allocate the child allowance and calculate the personal income tax in the most favorable manner for the taxpayers concerned.
This solution applies, pending legislative amendments, as of assessment year 2017. Also, eligible taxpayers can file a notice of objection and request relief for the previous five assessment years.