The European Court of Justice is of the opinion, in its Dijkman verdict from July 1, 2010, that no municipal taxes can be levied on foreign source interest and dividend income, because residents who receive Belgian source interest and dividend income (or who use a Belgian go-between financial institution for the payments) are not imposed such an additional municipal taxation.
The consequence of this verdict is that all Belgian residents can claim back the municipal taxes they paid in the last five years on their foreign source interest and dividend income. This claim is limited to interest and dividend income from a "European source" (EU, plus Iceland, Norway and Liechtenstein). Income from outside that region will not be exempt from municipal taxes.
The Belgian tax authorities have given more information in a Circular Letter from October 19, 2010 and have arranged that no municipal taxes will be levied in the future. As for the past, the taxpayers should send a letter of appeal to the tax authorities to claim back the municipal taxes for the past five years. So normally, one should be able to ask for a refund up to the taxes paid for 2005 and onwards if claimed back in 2011.
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