The case concerned an application for annulment brought by the American Free Enterprise Chamber of Commerce, a US-based non-profit organisation, against Articles 35 and 36 of the Belgian law introduced on 19 December 2023, which set out the details of a minimum tax for multinational companies and large domestic groups. Several other US chambers of commerce intervened in support of the applicant, while the Belgian Council of Ministers defended the law. The applicants argued that the provisions breached constitutional principles, including those of equality, non-discrimination and the protection of property, and that the minimum tax conflicted with international obligations. They also asked the Constitutional Court to refer the matter to the Court of Justice of the European Union for a preliminary ruling on the validity of the Directive itself. They claimed that the directive was incompatible with the Charter of Fundamental Rights of the European Union and other EU legal principles.
Judgment
The Constitutional Court rejected the constitutional challenges and upheld the validity of Articles 35 and 36. The action for annulment was dismissed.
The Court examined the scope and purpose of the 2023 Law, which implemented elements of the OECD/G20 global minimum tax framework. The Court held that the Belgian legislature was entitled to introduce measures to ensure that large multinational and domestic groups pay a minimum level of taxation, in line with international commitments and the Belgian Constitution. The Court found that the contested provisions pursued the legitimate objectives of preventing tax avoidance and protecting the fairness of the tax system, and that the differential treatment of taxpayers was objectively justified.
While the Court considered the request for a preliminary ruling, it decided that there was no need to refer a question to the CJEU.
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