The European Commission has officially asked Belgium to revise how it grants tax relief to venture capital investors. Belgian legislation grants a personal income tax credit to individuals living in the Flemish region who invest in shares and units of certain venture capital schemes. Residents of other Member States cannot benefit from the tax credit even if they are fully taxable in Belgium.

The Commission considers that this legislation is incompatible with the Treaties, as it discourages the free movement of workers and self-employed persons as set out in articles 45 and 49 TFEU and 28 and 31 EEA. According to the Commission, the Belgian provisions also go against the case-law of the EU's Court of Justice that taxpayers who are tax residents of other Member States of the EU or EEA but derive all or almost all of their income in Belgium should be entitled to the same tax benefits as Belgian residents (see case C-279/93 Schumacker).

The request takes the form of a reasoned opinion (the second stage of an infringement procedure). If the rules are not brought into compliance within two months, the Commission mq2 may refer the matter to the Court of Justice of the European Union.