exemption with progression method

"The European Court of Justice has ruled very clearly on how the exemption with progression method should be applied.

When a double tax convention is applicable, Belgium exempts foreign source income of Belgian residents from tax, but nevertheless takes such foreign source income into account for the purposes of determining the rate of tax applicable to the taxpayers' Belgian source income (exemption with progression method).

1. Subject to paragraph 3, for the purposes of calculating the value of exposures for the purposes of Article 111(1) to (3) Member States may, in respect of credit institutions using the Financial Collateral Comprehensive Method under Articles 90 to 93, in the alternative to availing of the full or partial exemptions permitted under points (f), (g), (h), and (o) of Article 113(3), permit such credit institutions to use a value lower than the value of the exposure, but no lower than the total of the fully-adjusted exposure values of their exposures to the client or group of connected clients.

–sign, subject to conclusion, the Agreement on international humane trapping standards between the European Community, Canada and the Russian Federation; the European Parliament will be consulted on the Agreement; –approve the list of countries which observed the use of methods complying with international humane trapping standards and which were therefore exempt from the import ban.