Decision of the Council of State dated January 4, 2024

In an opinion issued last Thursday, the Council of State clarified the tax base for surcharges imposed for failure to file or late filing of income tax returns.

It states that this base corresponds to "the amount of tax due as listed on the tax assessment, without deducting any advance payments or withholdings already made."

Amounts paid under the withholding tax system therefore do not reduce the basis for the penalty. Amounts paid under the single flat-rate withholding tax, which constitutes a final tax, should, however, reduce the basis for calculating the penalty.

EC, Opinion, Chapters 9 and 10, Jan. 4, 2024, No. 488915, Cited in the tables