Income Tax Treaty PDF

UNITED STATES - BELGIUM INCOME TAX CONVENTION
Convention signed at Brussels July 9, 1970;
Ratification advised by the Senate of the United Stages of America November 25, 1970;
Ratified by the President of the United States of America December 8, 1970;
Ratified by Belgium August 14, 1972;
Ratifications exchanged at Washington September 13, 1972;
Proclaimed by the President of the United States of America September 25, 1972;
Entered into Force October 13, 1972.
GENERAL EFFECTIVE DATE UNDER ARTICLE 30: 1 JANUARY 1971
TABLE OF ARTICLES
Article 1---------------------------------Personal Scope
Article 2---------------------------------Taxes Covered
Article 3---------------------------------General Definitions
Article 4---------------------------------Fiscal Domicile
Article 5---------------------------------Permanent Establishment
Article 6---------------------------------Income from Real Property
Article 7---------------------------------Business Profits
Article 8---------------------------------Shipping and Air Transport
Article 9---------------------------------Associated Enterprises
Article 10-------------------------------Dividends
Article 11-------------------------------Interest
Article 12-------------------------------Royalties
Article 13-------------------------------Capital Gains
Article 14-------------------------------Independent Personal Services
Article 15-------------------------------Dependent Personal Services
Article 16-------------------------------Director’s Fees
Article 17-------------------------------Social Security Payments
Article 18-------------------------------Private Pensions and Annuities
Article 19-------------------------------Governmental Functions
Article 20-------------------------------Teachers
Article 21-------------------------------Students and Trainees
Article 22-------------------------------Income Not Expressly Mentioned
Article 23-------------------------------Relief from Double Taxation
Article 24-------------------------------Nondiscrimination
Article 25-------------------------------Mutual Agreement Procedure
Article 26-------------------------------Exchange of Information
Article 27-------------------------------Assistance in Collection
Article 28-------------------------------Miscellaneous
Article 29-------------------------------Extension to Territories

Article 30-------------------------------Entry into Force
Article 31-------------------------------Termination
Letter of Submittal--------------------of 27 July, 1970
Letter of Transmittal -----------------of 13 August, 1970
Protocol-------------------------------- of 31 December, 1987
Notes of Exchange (Protocol)-------of 31 December, 1987
Letter of Submittal (Protocol)-------of 2 February, 1988
Letter of Transmittal (Protocol)-----of 29 February, 1988
The “Saving Clause”------------------Paragraph 1 of Article 23
TAX CONVENTION WITH BELGIUM
MESSAGE
FROM
THE PRESIDENT OF THE UNITED STATES
TRANSMITTING
THE CONVENTION BETWEEN THE UNITED STATES OF AMERICA AND THE KINGDOM
OF BELGIUM FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION
OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME, SIGNED AT BRUSSELS
ON JULY 9, 1970
LETTER OF SUBMITTAL
DEPARTMENT OF STATE,
Washington, July 27, 1970.
The PRESIDENT,
The White House.
The PRESIDENT: I have the honor to submit to you, with a view to its transmission to the Senate
for advice and consent to ratification, a convention between the United States of America and the
Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with
respect to taxes on income, signed at Brussels on July 9,1970.
The convention was formulated as a result of technical discussions between officials of this

Government and officials of the Belgian Government. The Department of State and the Department of
the Treasury cooperated in its negotiation. It has the approval of both
Departments.
This convention, upon its coming into effect, would terminate the convention of October 28, 1948,
relating to the avoidance of double taxation with respect to taxes on income as modified by
supplementary conventions of September 9, 1952, and August 22, 1957, and by the Protocol of May
21, 1965 (4 UST 1647; 4 UST 1672; 10 UST 1358; 17 UST 1142; 18 UST 3011; Treaties and
Other International Acts Series 2833, 4280, 6073, and 6394).
Negotiation of the new convention entailed a comprehensive review of the existing convention, as
modified, each provision being thoroughly considered and, as necessary, rewritten to reflect changes in
the internal tax laws of the two countries and to take into account other recent tax treaties concluded by
the two countries. The new convention also follows, as closely as policy and technical considerations
permit, the model draft convention published in 1963 by the Organization for Economic Cooperation
and Development. The substance of the new convention conforms generally to that of recent revisions of
United States income-tax conventions with France, the Federal Republic of Germany, and the United
Kingdom.
In accordance with the pattern of comprehensive income-tax conventions of the United States, the
new convention with Belgium contains provisions regarding the tax treatment of income from real
property (art. 6), business profits (art.7), shipping and air transport (art. 8), associated enterprises (art.
9), dividends (art. 10), interest (art. 11), royalties (art. 12), capital gains (art. 13), independent and
dependent personal services (arts. 14 and 15), director's fees (art. 16), social security payments (art.
17), private pensions and annuities (art. 18), government salaries and similar remuneration (art. 19),
teaching or research (art. 20), and student and trainee gifts, grants, allowances, awards, and certain
personal services (art. 21). Income not expressly mentioned is covered by Article 22.
The convention retains a maximum 15 percent rate of tax at source on dividends, as in the existing
convention. The present treaty rate at source of 15 percent on interest is maintained in the general case,
but drops under the new convention to zero on interest arising from commercial credit or on interbank
transactions. Royalties continue to be exempt from tax at source as under the existing convention.
Article 1 of the new convention declares that the convention is generally applicable to persons who
reside in one or both of the countries. Article 2 describes the taxes to which the convention relates in the
case of the United States, the Federal income taxes imposed by the Internal Revenue Code; in the case
of Belgium, a variety of income taxes and also prepayments, additional prepayments, and surcharges.
Article 3 contains general definitions of various terms found in the convention. Article 4 defines
"resident" as applied to the determination of fiscal domicile in the two countries. Article 5 contains the
definition of "permanent establishment". Under the convention business profits derived by a resident of
one of the contracting states may be taxed by the other contracting state only if the resident maintains a
"permanent establishment" in that other state to which the profits are attributable.

The credit provisions and related provisions dealing with relief from double taxation are set forth in
Article 23. Article 24 contains the provisions regarding nondiscrimination (the so-called national-
treatment provisions).
Articles 25-28 contain provisions relating to cooperation between the competent authorities of the
two countries in effectuating the purposes of the convention. Article 28 also contains the provision that
nothing in the convention shall affect the fiscal privileges of diplomatic and consular officers under the
general rules of international law or provisions of special agreements.
Article 29 provides for an exchange-of-notes procedure whereby the convention, in whole or in
part, may be extended to all or any of the areas for whose international relations the United States is
responsible and which imposes taxes substantially similar in character to those which are covered by the
convention. This applies only to those areas to which the convention is not otherwise applicable
pursuant to the definition of "United States" in Article 3 (1) (a).
It is provided in Article 30 that the convention will enter into force one month after the date of
exchange of instruments of ratification and that its provisions shall have effect for the first time with
respect to income of calendar years or taxable years beginning (or in the case of taxes payable at the
source, payments made) on or after January 1, 1971. Article 30 provides also that, as between the
United States and Belgium, the 1948 convention, as modified and supplemented, shall terminate and
cease to have effect in respect of income to which the new convention applies.
Pursuant to Article 31, the convention would remain in force until terminated by one of the parties.
Either party has the right to terminate the convention at any time after five years from the date of its entry
into force by giving a six-month prior written notice of termination. A special provision is included
regarding Article 17 (social security payments) so that it may be terminated by either party at any time
after the convention enters into force.
Respectfully submitted,
WILLIAM P. ROGERS.
LETTER OF TRANSMITTAL
THE WHITE HOUSE, August13, 1970.
To the Senate of the United States:
With a view to receiving the advice and consent of the Senate to ratification, I transmit herewith the
convention between the United States of America and the Kingdom of Belgium for the avoidance of
double taxation and the prevention of fiscal evasion with respect to taxes on income, signed at Brussels

on July 9, 1970.
For the information of the Senate, I transmit also the report of the Secretary of State with respect to
the convention.
The existing income-tax convention of October 28, 1948 with Belgium. as modified by
supplementary conventions of September 9, 1952, and August 22, 1957, and by the protocol of May
21, 1965, would be terminated and replaced by the new convention upon the coming into force of the
latter.
In revising the existing convention, as modified, it has been possible to incorporate in a single
comprehensive convention provisions which reflect changes in the internal tax laws of the United States
and Belgium. The revised convention, while following in general the pattern of bilateral income-tax
conventions now in force between the United States and a number of other countries, reflect in
particular certain tax treaty policies established in recent revisions of such conventions with France, the
Federal Republic of Germany, and the United Kingdom. Moreover, the revised provision reflect, to the
extent that policy and technical considerations permit, the model income-tax convention published by
the Organization for Economic Cooperation and Development.
As in the cases of other income-tax conventions of the United States, provisions in the new
convention with Belgium that are of special interest include those which relate to commercial and
industrial profits, dividends, interest, royalties, and capital gains. The revised provisions regarding social
security payments, governmental salaries and similar remuneration, income from teaching and research
and other personal services, and exemptions to which students and trainees are entitled should also be
of particular interest.
The maximum 15 percent rate of tax at source on dividends, as provided in the existing convention,
is retained in the new convention. The 15 percent rate of tax at source on interest, as provided in the
existng convention, is retained as a general rule in the new convention, but interest arising from
commercial credit or on interbank transactions is exempted from tax. The provision of the existing
convention granting an exemption from tax in the source country to royalties derived from sources within
one of the countries by a resident of the other country is retained in the new convention.
I recommend that the Senate give early and favorable consideration to the convention.
RICHARD NIXON
.
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
CONSIDERING THAT:

The Convention between the United States of America and the Kingdom of Belgium for the
Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income
was signed at Brussels on July 9, 1970, the text of which Convention, in the English, French, and Dutch
languages, is hereto annexed;
The Senate of the United States of America by its resolution of November 25, 1970, two-thirds of
the Senators present concurring therein, gave its advice and consent to the ratification of the
Convention;
The Convention was duly ratified by the President of the United States of America on December 8,
1970, in pursuance of the advice and consent of the Senate, and was duly ratified on the part of the
Kingdom of Belgium;
It is provided in Article 30 of the Convention that the Convention shall enter into force one month
after the date of the exchange of instruments of ratification;
The instruments of ratification of the Convention were duly exchanged at Washington on September
13, 1972, and accordingly the Convention enters into force on October 13, 1972;
NOW, THEREFORE, I, Richard Nixon, President of the United States of America, proclaim and
make public the Convention of July 9,1970 to the end that it shall be observed and fulfilled with good
faith by the United States of America and by the citizens of the United States of America and all other
persons subject to the jurisdiction thereof.
IN TESTIMONY WHEREOF, have signed this proclamation and caused the Seal of the United
States of America to be affixed.
DONE at the city of Washington this twenty-fifth day of September in the year of our Lord one
thousand nine hundred seventy-two and of the Independence of the United States of
America the one hundred ninety-seventh.
RICHARD NIXON
By the President:
WILLIAM P ROGERS
Secretary of State
CONVENTION
BETWEEN THE UNITED STATES OF AMERICA AND THE KINGDOM OF BELGIUM FOR
THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL

EVASION WITH RESPECT TO TAXES ON INCOME
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
and
THE GOVERNMENT OF THE KINGDOM OF BELGIUM,
Desiring to conclude a convention for the avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income
Have agreed upon the following articles:
ARTICLE 1
Personal Scope
This Convention is generally applicable to persons who are residents of one or both of the
Contracting States.
ARTICLE 2
Taxes Covered
(1) The taxes which are the subject of this Convention are:
(a) In the case of the United States, the Federal income taxes imposed by the Internal
Revenue Code, hereinafter referred to as the “United States tax”, and
(b) In the case of Belgium:
(i) The individual income tax (l’impôt des personnes physiques);
(ii) The corporate income tax (l’impôt des sociétés);
(iii) The income tax on legal entities (l’impôt des personnes morales);
(iv) The income tax on nonresidents (l’impôt des non-résidents);
(v) The prepayments and additional prepayments (les précomptes et
compléments de précomptes); and
(vi) Surcharges (centimes additionnels) on any of the taxes referred to in (i)
through (v), including the communal supplement to the individual income tax (la taxe
communale additionnelle à l’impôt des personnes physiques),
hereinafter referred to as the “Belgian tax”.
(2) This Convention shall also apply to any identical or substantially similar taxes which are imposed
after the date of signature of this Convention in addition to, or in place of, existing taxes.
(3) The competent authorities of the Contracting States shall notify each other of any amendments of
the laws imposing the taxes referred to in paragraph (1) and of the adoption of any taxes referred to in
paragraph (2) by transmitting the texts of any amendments or new statutes at least once a year.

(4) The competent authorities of the Contracting States shall notify each other of the publication by
their respective Contracting States of any material concerning the application of this Convention,
whether in the form of regulations, rulings, or judicial decisions, by transmitting the texts of any such
materials at least once a year.
ARTICLE 3
General Definitions
(1) In this Convention, unless the context otherwise requires:
(a) (i) The term “United States” means the United States of America; and
(ii) When used in a geographical sense, the term “United States” means the
States thereof and the District of Columbia. Such term also includes
(A) the territorial sea thereof, and
(B) the seabed and subsoil of the adjacent submarine areas beyond the
territorial sea, over which the United States exercises sovereign rights in
accordance with international law for the purpose of exploration and
exploitation of the natural resources of such areas, but only to the extent that the
person, property, or activity to which this Convention is being applied is
connected with such exploration or exploitation.
(b)(i)The term “Belgium” means the Kingdom of Belgium; and
(ii) When used in a geographical sense the term “Belgium” means the territory of
Belgium. Such term also includes
(A) the territorial sea thereof and
(B) the seabed and subsoil of the adjacent submarine areas beyond the
territorial sea over which Belgium exercises sovereign rights in accordance with
international law, for the purpose of exploration and exploitation, of the natural
resources of such areas, but only to the extent that the person, property, or
activity to which this Convention is being applied is connected with such
exploration or exploitation.
(c) The, term “one of the Contracting States” or “the other Contracting State” means
the United States or Belgium, as the context requires.
(d) The term “person” includes an individual, a partnership, a corporation, an estate, a
trust, or any body of persons.
(e)(i) The term “United States corporation” or “corporation of the United States”
means a corporation which is created or organized under the laws of the United States
or any State thereof or the District of Columbia or any unincorporated entity treated as
a United States corporation for United States tax purposes, provided that such
corporation or entity is not a Belgian corporation for Belgian tax purposes; and
(ii) The term “Belgian corporation” or “corporation of Belgium” means any
entity which under Belgian tax law
(A) is either a body corporate or is treated as a body corporate and

(B) is a resident of Belgium, provided that such entity is not a United
States corporation for United States tax purposes.
(f) The term “competent authority” means:
(i) In the case of the United States, the Secretary of the Treasury or his
delegate, and
(ii) In the ease of Belgium, the competent authority according to Belgian
legislation.
(g) The term “State” means any National State, whether or not one of the Contracting
States.
(2) Subject to paragraph (2) (d) of Article 25 (Mutual Agreement Procedure), any other term used
in this Convention and not defined in this Convention shall, unless the context otherwise requires, have
the meaning which it has under the laws of the Contracting State whose tax is being determined.
ARTICLE 4
Fiscal Domicile
(1) In this Convention:
(a) The term “resident of Belgium” means:
(i) A Belgian corporation, and
(ii) Any person (other than a corporation) who is a resident of Belgium for
purposes of its tax.
(b) The term “resident of the United States” means:
(i) A United States corporation, and
(ii) Any person (except a corporation or any other entity treated as a
corporation for United States tax purposes) resident in the United States for purposes
of its tax, but in the case of a partnership, estate, or trust only to the extent that the
income derived by such person is subject to United States tax as the income of a
resident.
(2) Where by reason of the provisions of paragraph (1) an individual is a resident of both
Contracting States:
(a) He shall be deemed to be a resident of that Contracting State in which he maintains
his permanent home. If he has a permanent home in both Contracting States or in neither of the
Contracting States, he shall be deemed a resident of that Contracting State with which his
personal and economic relations are closest (center of vital interests);
(b) If the Contracting State in which he has his center of vital interests cannot be
determined, he shall be deemed to be a resident of that Contracting State in which he has a
habitual abode;
(c) If he has a habitual abode in both Contracting States or in neither of the Contracting
States, he shall be deemed to be a resident of the Contracting State of which he is a citizen; and
(d) If he is a citizen of both Contracting States or of neither Contracting State the

competent authorities of the Contracting States shall settle the question by mutual agreement.
For purpose of this paragraph, a permanent home is the place where an individual dwells with his family.
ARTICLE 5
Permanent Establishment
(1) For the purpose of this Convention, the term “permanent establishment” means a fixed place of
business through which a resident of one of the Contracting States engages in industrial or commercial
activity.
(2) The term “fixed place of business” includes but is not limited to:
(a) A seat of management;
(b) A branch;
(c) An office;
(d) A factory;
(e) A workshop;
(f) A warehouse;
(g) A mine, quarry, or other place of extraction of natural resources; and
(h) A building site or construction or installation project which exists for more than 12
months.
(3) Notwithstanding paragraphs (1) and (2), a permanent establishment shall not include a fixed
place of business used only for one or more of the following:
(a) The use of facilities for the purpose of storage, display, or delivery of goods or
merchandise belonging to the resident;
(b) The maintenance of a stock of goods or merchandise belonging to the resident for
the purpose of storage, display, or delivery;
(c) The maintenance of a stock of goods or merchandise belonging to the resident for
the purpose of processing by another person;
(d) The maintenance of a fixed place of business for the purpose of purchasing goods or
merchandise, or for collecting information, for the resident;
(e) The maintenance of a fixed place of business for the purpose of advertising, for the
supply of information, for scientific research, or for similar activities which have a preparatory or
auxiliary character, for the resident; or
(f) The maintenance of a building site or construction or installation project which does
not exist for more than 12 months.
(4) Notwithstanding subparagraph (a), (c) and (d) of paragraph (3), if a resident of one of the
Contracting States has a fixed place of business in the other Contracting State and goods or
merchandise are either:
(a) Subjected to processing in the other Contracting State by another person (whether
or not purchased in the other Contracting State); or

(b) Purchased in the other Contracting State (and such goods or merchandise are not
subjected to processing outside the other Contracting State)
such resident shall be considered to have a permanent establishment in that other Contracting State, if all
or part of such goods or merchandise is sold by, or on behalf of such resident for use, consumption, or
disposition in that other Contracting State.
(5) A person acting in one of the Contracting States on behalf of a resident of the other Contracting
State, other than an agent of an independent status to whom paragraph (6) applies, shall be deemed to
be a permanent establishment in the first-mentioned Contracting State if such person has, and habitually
exercises in the first-mentioned Contracting State, an authority to conclude contracts in the name of that
resident, unless the exercise of such authority is limited to the purchase of goods or merchandise for that
resident.
(6) A resident of one of the Contracting States shall not be deemed to have a permanent
establishment in the other Contracting State merely because such resident engages in industrial or
commercial activity in that other Contracting State through a broker, general commission agent, or any
other agent of an independent status, where such broker or agent is acting in the ordinary course of his
business. This paragraph shall not apply with respect to a broker or agent acting on behalf of an
insurance company if such broker or agent has, and habitually exercises, an authority to conclude
contracts in the name of that company.
(7) The fact that a resident of one of the Contracting States is a related person with respect to a
resident of the other Contracting State or with respect to a person who engages in industrial or
commercial activity in that other Contracting State (whether through a permanent establishment or
otherwise) shall not be taken into account in determining whether that resident of the first-mentioned
Contracting State has a permanent establishment in that other Contracting State.
(8) The principles set forth in paragraphs (1) through (7) shall be applied in determining whether
there is a permanent establishment in a State other than one of the Contracting States or whether a
person other than a resident of one of the Contracting States has a permanent establishment in one of
the Contracting States.
ARTICLE 6
Income from Real Property
(1) Income from real property, including royalties in respect of the operation of mines, quarries, or
other natural resources and gains derived from the sale, exchange, or other disposition of such property
or, of the right, giving rise to such royalties, may be taxed by the Contracting State in which such real
property, mines, quarries, or other natural resources are situated. For purposes of this Convention
interest or indebtedness secured by real property by a right giving rise to royalties in respect of the
operation of mines, quarries, or other natural resources shall not be regarded as income from real
property.

(2) Paragraph (1) shall apply to income derived from the usufruct, direct use, letting, or use in any
other form of real property.
ARTICLE 7
Business Profits
(1) Industrial or commercial profits of a resident of one of the Contracting States shall be exempt
from tax by the other Contracting State unless such resident is engaged in industrial or commercial
activity in that other Contracting State through a permanent establishment situated therein. If such
resident is so engaged, tax may be imposed by that other Contracting State on the industrial or
commercial profits of such resident but only on so much of such profits as are attributable to the
permanent establishment.
(2) Where a resident of one of the Contracting States is engaged in industrial or commercial activity
in the other Contracting State through a permanent establishment situated therein, there shall in each
Contracting State be attributed to the permanent establishment the industrial or commercial profits which
would be attributable to such permanent establishment if such permanent establishment were an
independent entity engaged in the same or similar activities under the same or similar conditions and
dealing wholly independently.
(3) In the determination of the industrial or commercial profits of a permanent establishment, there
shall be allowed as deductions expenses which are reasonably connected with such profits, including
executive and general administrative expenses, whether incurred in the Contracting State in which the
permanent establishment is situated or elsewhere.
(4) No profits shall be attributed to a permanent establishment of a resident of one of the
Contracting States in the other Contracting State merely by reason of the purchase of goods or
merchandise by the permanent establishment, or by the resident of which it is a permanent
establishment, for the account of that resident.
(5) For the purposes of this Convention the term “industrial or commercial profits”:
(a) Does include rents or royalties derived from motion picture films or films or tapes
used for radio or television broadcasting or from copyrights thereof and rents derived from the
leasing of tangible personal property;
(b) Does not include items of income specifically dealt with in other articles of this
Convention, except as provided in such articles.
Subject to the provisions of this Convention, items of income excluded from industrial or commercial
profits under subparagraph (b) may be taxed separately or together with industrial or commercial profits
in accordance with the laws of the Contracting State whose tax is being determined.

ARTICLE 8
Shipping and Air Transport
(1) Notwithstanding Article 7 (Business Profits) and Article 13 (Capital Gains), income which a
resident of one of the Contracting States derives from the operation in international traffic of ships
registered in that Contracting State, and gains which a resident of one of the Contracting States derives
from the sale, exchange, or other disposition of ships operated in international traffic by such resident
and registered in that Contracting State, shall be exempt from tax by the other Contracting State.
(2) Notwithstanding Article 7 (Business Profits) and Article 13 (Capital Gains), income which a
resident of one of the Contracting States derives from the operation in international traffic of aircraft
registered in either Contracting State or in a State with which the other Contracting State has an income
tax convention exempting such income, and gains which a resident of one of the Contracting States
derives from the sale, exchange or other disposition of aircraft operated in international traffic by such
resident and registered in either Contracting State or in a State with which the other Contracting State
has an income tax convention exempting such income, shall be exempt from tax by the other Contracting
State.
ARTICLE 9
Associated Enterprises
(1) Where a resident of one of the Contracting States and a resident of the other Contracting State
are related and where such related persons make arrangements or impose conditions between
themselves which are different from those which would be made between independent persons, then
any income which would, but for those arrangements or conditions, have accrued to the resident of the
first-mentioned Contracting State but, by reason of those arrangements or conditions, has not so
accrued, may be included in the income of the resident of the first-mentioned Contracting State for
purposes of this Convention and taxed accordingly.
(2) A person is related to another person for purposes of this Convention if either person
participates directly or indirectly in the management, control, or capital of the other, or if any third
person or persons participates directly or indirectly in the management, control, or capital of both.
ARTICLE 10
Dividends
(1) Dividends paid by a corporation of one of the Contracting States to a resident of the other
Contracting State may be taxed by both Contracting States.
(2) The rate of tax imposed by the first-mentioned Contracting State on such dividends shall not

exceed 15 percent of the gross amount actually distributed. The term “dividends” shall include income
from invested capital received by members of Belgian companies other than companies with share
capital where, under Belgian law, such income is taxable in the same way as dividends.
(3) Paragraph (2) shall not apply if the recipient of the dividends, being a resident of one of the
Contracting States, has a permanent establishment in the other Contracting State and the shares with
respect to which the dividends are paid are effectively connected with such permanent establishment. In
such a case, Article 7 (Business Profits) shall apply, provided that Belgium shall not be prevented from
imposing its movable property prepayment (précompte mobilier) in accordance with Belgian law.
(4) Dividends paid by a corporation of one of the Contracting States to a person other than a
resident of the other Contracting State shall be exempt from tax by that other Contracting State. This
paragraph shall not apply:
(a) If the recipient of the dividends has a permanent establishment in that other
Contracting State and the shares with respect to which the dividends are paid are effectively
connected with such permanent establishment, or
(b) If the dividends are paid by a United States corporation and are received within
Belgium by a person who is not a citizen or resident of the United States.
ARTICLE 11
Interest
(1) Interest derived from sources within one of the Contracting States by a resident of the other
Contracting State may be taxed by both Contracting States.
(2) The rate of tax imposed by one of the Contracting States on interest derived from sources within
that Contracting State by a resident of the other Contracting State shall not exceed 15 percent.
(3) Notwithstanding paragraphs (1) and (2), interest derived by a resident of one of the Contracting
States from sources in the other Contracting State shall be exempt from tax by the other Contracting
State if it is:
(a) Interest arising out of commercial credit-including credit which is represented by
commercial paper-resulting from deferred payments for goods or merchandise or services
supplied by a resident of one of the Contracting States to a resident of the other Contracting
State,
(b) Interest paid between banks, except on loans represented by bearer instruments, or
(c) Interest arising from deposits, not represented by bearer instruments, made in banks
or other financial institutions.
(4) Notwithstanding paragraphs (1) and (2), interest beneficially derived by one of the Contracting
States, or by an instrumentality of that Contracting State, not subject to tax by that Contracting State on
its income, shall be exempt from tax by the other Contracting State.

(5) The term “interest” as used in this Convention means income from bonds, Government
securities, notes or other evidences of indebtedness, whether or not secured and whether or not
carrying a right to participate in profits, and debt-claims of every kind, as well as all other income
assimilated to income from money lent by the taxation law of the Contracting State in which the income
has its source, but not interest which is considered as dividends in accordance with the second sentence
of paragraph (2) of Article 10 (Dividends); it includes, in the case of Belgium, prizes on lottery bonds.
(6) Interest shall be treated as income from sources within a Contracting State only if paid by such
Contracting State, a political subdivision or a local authority thereof, or by a resident of that Contracting
State. Notwithstanding the preceding sentence:
(a) If the person paying the interest (whether or not such person is a resident of one of
the Contracting States) has a permanent establishment in one of the Contracting States in
connection with which the indebtedness on which the interest is paid was incurred and such
interest is borne by such permanent establishment, or
(b) If the person paying the interest is a resident of one of the Contracting States and
has a permanent establishment in a State other than a Contracting State in connection with
which the indebtedness on which the interest is paid was incurred and such interest is paid to a
resident of the other Contracting State, and such interest is borne by such permanent
establishment,
such interest shall be deemed to be from sources within the State in which the permanent establishment
is situated.
(7) Paragraphs (2), (3), and (4) shall not apply if the recipient of the interest, being a resident of one
of the Contracting States, has a permanent establishment in the other Contracting State and the
indebtedness giving rise to the interest is effectively connected with such permanent establishment. In
such a case, the provisions of Article 7 (Business Profits) shall apply.
(8) Where any interest paid by a person to any related person exceeds an amount which would
have been paid to an unrelated person, the provisions of this article shall apply only to so much of the
interest as would have been paid to an unrelated person. In such a case the excess payment may be
taxed according to its own law by the Contracting State from which the interest is derived.
(9) Interest paid by a resident of one of the Contracting States to a person other than a resident of
the other Contracting State shall be exempt from tax by that other Contracting State. This paragraph
shall not apply if:
(a) Such interest is treated as income from sources within that other Contracting State
under paragraph (6),
(b) The recipient of the interest has a permanent establishment in that other Contracting
State and the indebtedness giving rise to the interest is effectively connected with such
permanent establishment, or
(c) Such interest is from sources within the United States and is received within Belgium
by a person who is not a citizen or resident of the United States.

ARTICLE 12
Royalties
(1) Royalties derived from sources within one of the Contracting States by a resident of the other
Contracting State shall be exempt from tax by the first-mentioned Contracting State.
(2) The term “royalties” as used in this article means:
(a) Payment of any kind made as consideration for the use of, or the right to use,
copyrights of literary, artistic, or scientific works (but not including copyrights of motion picture
films or films or tapes used for radio or television broadcasting), patents, designs, models, plans,
secret processes or formulae, trademarks, or other like property or rights, or knowledge,
experience, or skill (know-how), and
(b) Gains derived from the sale, exchange, or other disposition of any such right or
property to the extent that the amounts realized on such sale, exchange, or other disposition for
consideration are contingent on the productivity, use, or disposition of such right or property.
(3) Royalties shall be treated as income from sources within one of the Contracting States only if
paid by such Contracting State, a political subdivision or a local authority thereof, or by a resident of
that Contracting State. Notwithstanding the preceding sentence:
(a) If the person paying the royalties (whether or not such a person is a resident of one
of the Contracting States) has a permanent establishment in one of the Contracting States with
which the right or property giving rise to the royalties is effectively connected and such royalties
are borne by such permanent establishment, or
(b) If the person paying the royalties is a resident of one of the Contracting States and
has a permanent establishment in a State other than a Contracting State with which the right or
property giving rise to the royalties is effectively connected and such royalties are borne by such
permanent establishment,
such royalties shall be deemed to be from sources within the State in which the permanent establishment
is situated.
(4) Paragraph (1) shall not apply if the recipient of the royalty, being a resident of one of the
Contracting States, has in the other Contracting State a permanent establishment and the right or
property giving rise to the royalty is effectively connected with such permanent establishment. In such a
case the provisions of Article 7 (Business Profits) shall apply.
(5) Where any royalty paid by a person to any related person exceeds an amount which would have
been paid to an unrelated person, the provisions of this article shall apply only to so much of the royalty
as would have been paid to an unrelated person. In such a case the excess payment may be taxed
according to its own law by the Contracting State from which the royalty is derived.

ARTICLE 13
Capital Gains
Gains derived by a resident of one of the Contracting States from the sale, exchange, or other
disposition of capital assets shall be exempt from tax by the other Contracting State unless:
(1) The gain is derived by a resident of the first-mentioned Contracting State from the sale,
exchange, or other disposition of property described in Article 6 (Income from Real Property) situated
within that other Contracting State,
(2) The recipient of the gain, being a resident of the first-mentioned Contracting State, has a
permanent establishment or maintains a fixed base in that other Contracting State and the property
giving rise to the gain is effectively connected with such permanent establishment or such fixed base, or
(3) The recipient of the gain, being an individual resident of the first-mentioned Contracting State, is
present in that other Contracting State for a period or periods aggregating 183 days or more in the
taxable year.
If under the provisions of paragraph (2) the property is effectively connected with a permanent
establishment, the provisions of Article 7 (Business Profits) shall apply.
ARTICLE 14
Independent Personal Services
(1) Income derived by an individual who is a resident of one of the Contracting States from the
performance of personal services in an independent capacity, may be taxed by that Contracting State.
Except as provided in paragraph (2), such income shall be exempt from tax by the other Contracting
State.
(2) Income derived by an individual who is a resident of one of the Contracting States from the
performance of personal services in an independent capacity in the other Contracting State may be
taxed by that other Contracting State, if:
(a) The individual is present in that other Contracting State for a period or periods
aggregating 183 days or more in the taxable year,
(b) The individual maintains a fixed base in that other Contracting State for a period or
periods aggregating 183 days or more in the taxable year, and the income is attributable to such
fixed base, or
(c) The individual derives the income from personal services as a public entertainer,
such as a theater, motion picture, or television artist, a musician, or an athlete, unless such
individual is present in that other Contracting State for a period or periods not exceeding a total
of 90 days during the taxable year and such income does not exceed in the aggregate 3,000
United States dollars or its equivalent in Belgian francs during the taxable year.

ARTICLE 15
Dependent Personal Services
(1) Wages, salaries, and similar remuneration derived by an individual who is a resident of one of
the Contracting States from labor or personal services performed as an employee, including income
from services performed by an officer of a company, may be taxed by that Contracting State. Except as
provided by paragraph (2) and Article 20 (Teachers) and Article 21 (Students and Trainees) such
remuneration derived from labor or personal services performed in the other Contracting State may also
be taxed by that other Contracting State.
(2) Remuneration described in paragraph (1) derived by an individual who is a resident of one of the
Contracting States shall be exempt from tax by the other Contracting State if:
(a) He is present in that other Contracting State for a period or periods aggregating less
than 183 days in the taxable year;
(b) He is an employee of a resident of the first-mentioned Contracting State or of a
permanent establishment maintained in the first-mentioned Contracting State; and
(c) The remuneration is not borne as such by a permanent establishment which the
employer has in that other Contracting State.
(3) Notwithstanding paragraphs (1) and (2), remuneration derived by an individual from labor or
personal services performed as an employee aboard ships or aircraft registered in one of the
Contracting States and operated by a resident of that Contracting State in international traffic shall be
exempt from tax by the other Contracting State if such individual is a member of the regular complement
of the ship or aircraft.
ARTICLE 16
Directors’ Fees
Notwithstanding Articles 14 (Independent Personal Services) and 15 (Dependent Personal
Services), a director’s fee derived by an individual who is a resident of one of the Contracting States in
his capacity as a member of the board of directors of a corporation of the other Contracting State (but
not including fixed or contingent payments derived in his capacity as an officer or employee), which
cannot be taken as a deduction by the corporation but is treated in that other Contracting State as a
distribution of profits, may be taxed by that other Contracting State.
ARTICLE 17
Social Security Payments
Social security payments and similar pensions paid by, or out of public funds created by, one of the

Contracting States or a governmental instrumentality thereof to an individual who is a resident of the
other Contracting State shall be taxable only in the first-mentioned Contracting State.
ARTICLE 18
Private Pensions and Annuities
(1) Except as provided in Articles 17 (Social Security Payments) and 19 (Governmental Functions),
pensions and other similar remuneration paid to an individual who is a resident of one of the Contracting
States in consideration of past employment shall be taxable only in that Contracting State.
(2) Alimony and annuities paid to an individual who is a resident of one of the Contracting States
shall be taxable only in that Contracting State.
(3) The term “pensions and other similar remuneration”, as used in this article, means periodic
payments made after retirement or death in consideration for services rendered, or by way of
compensation for injuries received in connection with past employment.
(4) The term “annuities”, as used in this article, means a stated sum paid periodically at stated times
during life, or during a specified number of years, under an obligation to make the payments in return for
adequate and full consideration (other than for services rendered).
ARTICLE 19
Governmental Functions
(1) Notwithstanding Articles 15 (Dependent Personal Services), 17 (Social Security Payments),
and 18 (Private Pensions and Annuities), wages, salaries, and similar remuneration, including pensions
or similar benefits, paid by or from public funds of one of the Contracting States, or a political
subdivision or local authority thereof, for labor or personal services performed for that Contracting
State, or for any of its political subdivisions or local authorities, in the discharge of governmental
functions:
(a) To a citizen of that Contracting State or
(b) To a citizen of a State other than a Contracting State and who comes to the other
Contracting State expressly for the purpose of being employed by the first-mentioned
Contracting State, or a political subdivision or a local authority thereof,
shall be exempt from tax by that other Contracting State.
(2) The provisions of Articles 15 (Dependent Personal Services), 17 (Social Security Payments),
and 18 (Private Pensions and Annuities) shall apply to wages, salaries, and pensions paid in respect of
services rendered in connection with any trade or business carried on by the first-mentioned Contracting
State, or a political subdivision or a local authority thereof.

ARTICLE 20
Teachers
(1) An individual who is a resident of one of the Contracting States at the time he becomes
temporarily present in the other Contracting State and who, at the invitation of the Government of that
other Contracting State or of a university or other recognized educational institution in that other
Contracting State is temporarily present in that other Contracting State for the primary purpose of
teaching or engaging in research, or both, at a university or other recognized educational institution shall
be exempt from tax by that other Contracting State on his income from personal services for teaching or
research at such university or educational institution, for a period not exceeding 2 years from the date of
his arrival in that other Contracting State.
(2) This article shall not apply to income from research if such research is undertaken not in the
public interest but primarily for the private benefit of a specific person or persons.
ARTICLE 21
Students and Trainees
(1)(a) An individual who is a resident of one of the Contracting States at the time he
becomes temporarily present in the other Contracting State and who is temporarily present in
that other Contracting State for the primary purpose of:
(i) Studying at a university or other recognized educational institution in that
other Contracting State, or
(ii) Securing training required to qualify him to practice a profession or
professional specialty, or
(iii) Studying or doing research as a recipient of a grant, allowance, or award
from a governmental, religious, charitable, scientific, literary, or educational organization,
shall be exempt from tax by that other Contracting State with respect to amounts described in
subparagraph (b) for a period not exceeding 5 taxable years from the date of his arrival in that other
Contracting State.
(b) The amounts referred to in subparagraph (a) are:
(i) Gifts from abroad for the purpose of his maintenance, education, study,
research, or training;
(ii) The grant, allowance, or award; and
(iii) Income from personal services performed in that other Contracting State in
an amount not in excess of 2,000 United States dollars or its equivalent in Belgian francs
for any taxable year.
(2) An individual who is a resident of one of the Contracting States at the time he becomes
temporarily present in the other Contracting State and who is temporarily present in that other
Contracting State as an employee of, or under contract with, a resident of the first-mentioned

Contracting State, for the primary purpose of:
(a) Acquiring technical, professional, or business experience from a person other than
that resident of the first-mentioned Contracting State or other than a person related to such
resident, or
(b) Studying at a university or other recognized educational institution in that other
Contracting State, shall be exempt from tax by that other Contracting State for a period of 12
consecutive months with respect to his income from personal services in an aggregate amount
not in excess of 5,000 Unites States dollars or its equivalent in Belgian francs.
(3) An individual who is a resident of one of the Contracting States at the time he becomes
temporarily present in the other Contracting State and who is temporarily present in that other
Contracting State for a period not exceeding 1 year, as a participant in a program sponsored by the
Government of that other Contracting State, for the primary purpose of training, research, or study, shall
be exempt from tax by that other Contracting State with respect to his income from personal services in
respect of such training, research, or study performed in that other Contracting State in an aggregate
amount not in excess of 10,000 United States dollars or its equivalent in Belgian francs.
(4) The benefits provided under Article 20 (Teachers) and paragraph (1) of this article shall extend
only for such period of time as may reasonably or customarily be required to effectuate the purpose of
the visit, but in no case shall any individual have the benefits provided therein for more than a total of 5
taxable years from the date of his arrival.
ARTICLE 22
Income Not Expressly Mentioned
Items of income of a resident of one of the Contracting States which are not expressly mentioned in
the foregoing articles of this Convention shall be taxable only in that Contracting State except that if such
income is derived from sources within the other Contracting State, that other Contracting State may also
tax such income.
ARTICLE 23
Relief from Double Taxation
(1) Notwithstanding any other provision of this Convention, a Contracting State may tax its citizens
and residents as determined under Article 4 (Fiscal Domicile) as if this Convention had not come into
effect, provided however, that:
(a) This provision shall not affect the benefits conferred by a Contracting State under
this article and Articles 17 (Social Security Payments), 24 (Nondiscrimination), and 25 (Mutual
Agreement Procedure).
(b) This provision shall not affect the benefits conferred by a Contracting State under
Articles 19 (Governmental Functions), 20 (Teachers), and 21 (Students and Trainees), upon

individuals who are neither citizens of, nor have immigrant status in, that Contracting State.
(2) Subject to the provisions of United States law applicable for the taxable year, the United States
shall allow to a citizen or resident of the United States as a credit against United States tax the
appropriate amount of Belgian tax; such appropriate amount shall be based upon the amount of tax paid
to Belgium but shall not exceed the amount of United States tax attributable to income from Belgian
sources. Income which has been taxed by Belgium in accordance with Articles 6 through 21 shall, for
the purpose of applying the United States credit in relation to Belgian tax, be treated as income from
Belgian sources.
(3) In the case of income derived from sources in the United States relief from double taxation shall
be granted in Belgium in the following manner:
(a) Where a resident of Belgium derives income which is not subject to the provisions of
subparagraphs (b) through (d) below and which has been taxed by the United States in
accordance with Articles 6 through 21, Belgium shall exempt such income from tax but may, in
calculating the amount of tax on the remainder of the income of that resident, apply the rate of
tax which would have been applicable if such income had not been exempted.
(b) Where a resident of Belgium receives dividends (which are not exempt under
subparagraph (d)) to which the provisions of paragraph (2) of Article 10 (Dividends) apply,
interest to which the provisions of paragraph (2) or paragraph (8) of Article 11 (Interest) apply
or royalties to which the provisions of paragraph (5) of Article 12 (Royalties) apply, Belgium
shall reduce the Belgian tax imposed thereon by a credit in respect of the tax borne in the United
States. The credit shall be allowed against the tax imposed on the net amount of the dividends
from corporations of the United States, as well as of interest and royalties from sources in the
United States which have been taxed there; the credit shall be the fixed amount in respect of the
foreign tax for which provision is made in existing Belgian law, subject to any subsequent
modification - which, however, shall not affect the principle hereof.
(c) Where a resident of Belgium receives income to which the provisions of Article 22
(Income Not Expressly Mentioned) apply and which has been taxed by the United States, the
amount of Belgian tax proportionately attributable to such income shall not exceed the amount
which would be imposed in accordance with Belgian law, if such income were taxed as earned
income derived from sources outside Belgium and subject to foreign tax.
(d) Where a Belgian corporation owns shares in a United States corporation which is
subject in the United States to tax on its profits, the dividends which are paid to it by the latter
corporation and which may be taxed in the United States in accordance with the provisions of
paragraph (2) of Article 10 (Dividends) shall be exempt from the corporate income tax in
Belgium to the extent that the exemption would have been accorded if the two corporations had
been corporations of Belgium; this provision shall not prohibit the withholding from those
dividends of the movable property prepayment (précompte mobilier) imposed by Belgian law.
(e) A Belgian corporation which, during the whole of an accounting period of a United
States corporation which is subject there to tax on its profits, has held the direct ownership of
shares in the latter corporation, shall also be exempted from the movable property prepayment
(précompte mobilier) imposed by Belgian law on the dividends derived from those shares,

provided that it so requests in writing not later than the time limited for the submission of its
annual return; on the redistribution to its own shareholders of the dividends so exempted those
dividends may not be deducted from dividends distributed by that corporation which are subject
to the movable property prepayment (précompte mobilier). This subparagraph shall not apply
when the first-mentioned corporation has elected that its profits be charged to the individual
income tax. However, the application of this subparagraph shall be limited to dividends paid by
a United States corporation to a Belgian corporation which controls not less than 10 percent of
the voting power in the first-mentioned corporation where, for the application of the exemption
referred to in subparagraph (d), a similar limitation would be imposed by Belgian legislation in
respect of dividends paid by corporations of Belgium.
(f) Where an individual who is a resident of Belgium and a citizen of the United States
receives income from sources within the United States which is not exempt from Belgian tax
under subparagraph (a) nor covered by subparagraph (c), the amount of the Belgian individual
income tax proportionately attributable to such income may not exceed:
(i) In the case of dividends, interest, and royalties, an amount which, after
allowance of the fixed amount in respect of the foreign tax, where applicable,
corresponds to 20 percent of such income;
(ii) In the case of other income concerned, the amount which would be imposed
in accordance with Belgian law, if such income were taxed as earned income derived
from sources outside Belgium and subject to foreign tax.
(g) When in accordance with Belgian law, losses incurred by a resident of Belgium in a
permanent establishment situated in the United States have been effectively deducted from the
profits of that resident for his taxation in Belgium, the exemption provided in subparagraph (a)
shall not apply in Belgium to the profits of other taxable periods attributable to that establishment
to the extent that those profits have also been reduced for United States tax purposes by reason
of compensation for the said losses.
(4) In the case of a corporation which is treated as a United States corporation for United States
tax purposes and as a Belgian corporation for Belgian tax purposes, relief from double taxation shall be
granted in accordance with the principles of paragraphs (2) and (3).
ARTICLE 24
Nondiscrimination
(1) A citizen of one of the Contracting States who is a resident of the other Contracting State shall
not be subjected in that other Contracting State to more burdensome taxes than a citizen of that other
Contracting State who is a resident thereof.
(2) A permanent establishment which a resident of one of the Contracting States has in the other
Contracting State shall not be subject in that other Contracting State to more burdensome taxes than a
resident of that other Contracting State carrying on the same activities. This paragraph shall not be
construed as obliging a Contracting State to grant to individual residents of the other Contracting State

any personal allowances, reliefs, or deductions for taxation purposes on account of civil status or family
responsibilities which it grants to its own individual residents.
(3) A corporation of one of the Contracting States, the capital of which is wholly or partly owned or
controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be
subjected in the first-mentioned Contracting State to any taxation or any requirement connected
therewith which is other or more burdensome than the taxation and connected requirements to which a
corporation of the first-mentioned Contracting State carrying on the same activities, the capital of which
is wholly owned or controlled by one or more residents of the first-mentioned Contracting State, is or
may be subjected.
(4) The provisions of this article shall apply to taxes of every kind whether imposed at the National,
State, or local level.
(5) The provisions of paragraph (2) shall not be construed as preventing Belgium from taxing the
total profits attributable to a permanent establishment which is maintained in Belgium by a United States
corporation, or any unincorporated entity, which is a resident of the United States at a rate which -
before the application of the surcharges specified in paragraph (1) (b) (vi) of Article 2 - is the highest
rate at which the profits of a Belgian corporation may be taxed.
(a) However, as long as Belgium imposes its tax on the distributed profits of a Belgian
corporation at a rate which is lower than such highest rate then the Belgian tax on the portion of
the profits of the permanent establishment which is deemed to be distributed shall be imposed at
a rate which - before the application of the surcharges specified in paragraph (1) (b) (vi) of
Article 2 - shall not exceed the highest rate at which such tax may be imposed on the distributed
profits of a Belgian corporation.
(b) For purposes of this paragraph, the permanent establishment which is maintained in
Belgium shall be deemed to distribute the same percentage of its profits as such resident
distributes from its total profits.
ARTICLE 25
Mutual Agreement Procedure
(1) Where a resident of one of the Contracting States considers that the action of one or both of the
Contracting States results or will result for him in taxation not in accordance with this Convention, he
may, notwithstanding the remedies provided by the national laws of the Contracting States, present his
case to the competent authority of the Contracting State of which he is a resident within 2 years from the
date of notification (or collection at source) of the tax which has been last asserted or collected. Should
the residents claim be considered to have merit by the competent authority of the Contracting State to
which the claim is made, the competent authority shall endeavor to come to an agreement with the
competent authority of the other Contracting State with a view to the avoidance of taxation contrary to
the provisions of this Convention.

(2) The competent authorities of the Contracting States shall endeavor to resolve by mutual
agreement any difficulties or doubts arising as to the application of this Convention. In particular, the
competent authorities of the Contracting States may agree:
(a) To the same attribution of industrial or commercial profits to a resident of one of the
Contracting States and its permanent establishment situated in the other Contracting State;
(b) To the same allocation of income, deductions, credits, or allowances between a
resident of one of the Contracting States and any related person;
(c) To the same determination of the source of particular items of income; or
(d) To the same meaning of any term used in this Convention.
(3) The competent authorities of the Contracting States may communicate with each other directly
for the purpose of reaching an agreement in the sense of this article. When it seems advisable for the
purpose of reaching agreement, the competent authorities may meet together for an oral exchange of
opinions.
(4) In the event that the competent authorities reach such an agreement, taxes on such income shall
be adjusted and refund or credit of taxes shall be allowed, by the Contracting States in accordance with
such agreement.
ARTICLE 26
Exchange of Information
(1) The competent authorities of the Contracting States shall exchange such information as is
pertinent to carrying out the provisions of this Convention or preventing fraud or fiscal evasion in relation
to the taxes which are the subject of this Convention. Any information so exchanged shall be treated as
secret and shall not be disclosed to any persons other than those (including a court or administrative
body) concerned with assessment, collection, enforcement, or prosecution in respect of the taxes which
are the subject of this Convention.
(2) In no case shall the provisions of paragraph (1) be construed so as to impose on one of the
Contracting States the obligation:
(a) To carry out administrative measures at variance with the laws or the administrative
practice of that Contracting State or the other Contracting State;
(b) To supply particulars which are not obtainable under the laws, or in the normal
course of the administration, of that Contracting State or of the other Contracting State; or
(c) To supply information which would disclose any trade, business, industrial,
commercial, or professional secret or trade process or information, the disclosure of which
would be contrary to public policy.
(3) The exchange of information shall be either on a routine basis or on request with reference to
particular cases. The competent authorities of the Contracting States may agree on the list of information
which shall be furnished on a routine basis.

ARTICLE 27
Assistance in Collection
(1) Each of the Contracting States shall endeavor to collect on behalf of the other Contracting State
such taxes imposed by that other Contracting State as will ensure that any exemption or reduced rate of
tax granted under this Convention by that other Contracting State shall not be enjoyed by persons not
entitled to such benefits.
(2) In no case shall this article be construed so as to impose upon a Contracting State the obligation
to carry out administrative measures at variance with the regulations and practices of either Contracting
State or which would be contrary to the first-mentioned Contracting State’s sovereignty, security, or
public policy.
ARTICLE 28
Miscellaneous
(1) Nothing in this Convention shall affect the fiscal privileges of diplomatic and consular officials
under the general rules of international law or under the provisions of special agreements.
(2) The provisions of this Convention shall not be construed to restrict in any manner any exclusion,
exemption, deduction, credit, or other allowance now or hereafter accorded:
(a) By the laws of one of the Contracting States in the determination of the tax imposed
by that Contracting State, or
(b) By any other agreement between the Contracting States.
(3) The competent authorities of the two Contracting States may communicate with each other
directly for the purpose of carrying out the provisions of this Convention.
ARTICLE 29
Extension to Territories
(1) The United States may, at any time while this Convention continues in force, by a written
notification given to Belgium through diplomatic channels, declare its desire that the operation of this
Convention, either in whole or in part or with such modifications as may be found necessary for special
application in a particular case, shall extend to all or any of the areas (to which this Convention is not
otherwise applicable) for whose international relations it is responsible and which impose taxes
substantially similar in character to those which are the subject of this Convention. When Belgium has,
by a written communication through diplomatic channels, signified to the United States that such
notification is accepted in respect of such area or areas, and the notification and communication have

been ratified and instruments of ratification exchanged, this Convention, in whole or in part, or with such
modifications as may be found necessary for special application in a particular case, as specified in the
notification, shall apply to the area or areas named in the notification and shall have effect on and after
the date or dates specified therein.
(2) At any time after the date of entry into force of an extension under paragraph (1), either of the
Contracting States may, by 6 months prior notice of termination given to the other Contracting State
through diplomatic channels, terminate the application of this Convention to any area to which it has
been extended under paragraph (1), and in such event this Convention shall cease to have effect,
beginning on or after the first day of January next following the expiration of the 6-month period, in the
area or areas named therein, but without affecting its continued application to the United States,
Belgium, or to any other area to which it has been extended under paragraph (1).
(3) In the application of this Convention in relation to any area to which it is extended by notification
by the United States, reference to the “United States” shall be construed as referring to that area.
(4) The termination in respect of the United States or Belgium of this Convention under Article 31
(Termination) shall, unless otherwise expressly agreed by both Contracting States, terminate the
application of this Convention to any area to which the Convention has been extended under this article.
ARTICLE 30
Entry into Force
(1) This Convention shall be ratified and instruments of ratification shall be exchanged at Washington
as soon as possible. It shall enter into force 1 month after the date of exchange of the instruments of
ratification. The provisions shall for the first time have effect with respect to income of calendar years or
taxable years beginning (or, in the case of taxes payable at the source, payments made) on or after
January 1, 1971.
(2) As between the United States and Belgium, the Convention between Belgium and the United
States for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes
on Income signed at Washington, D.C. on October 28, 1948; modified and supplemented by the
Supplementary Conventions signed at Washington on September 9, 1952, and August 22, 1957, and
by the Protocol signed at Brussels on May 21, 1965, shall terminate and cease to have effect in respect
of income to which this Convention applies under paragraph (1) of this article.
ARTICLE 31
Termination
(1) This Convention shall remain in force until terminated by one of the Contracting States. Either
Contracting State may terminate the Convention at any time after 5 years from the date on which this

Convention enters into force provided that at least 6 months prior notice of termination has been given
through diplomatic channels. In such event the Convention shall cease to have effect as respects income
of calendar years or taxable years beginning (or, in the case of taxes payable at the source, payments
made) on or after January 1 next following the expiration of the 6-month period.
(2) Notwithstanding the provision of paragraph (1), and upon prior notice to be given through
diplomatic channels, the provisions of Article 17 (Social Security Payments) may be terminated by
either Contracting State at any time after this Convention enters into force.
FOR THE PRESIDENT OF THE FOR THE KINGDOM
UNITED STATES OF AMERICA OF BELGIUM
(s) John S. D. Eisenhower(s) Pierre Harmel
PROTOCOL
Supplementary Protocol Modifying and Supplementing the Convention of July 9, 1970 with an
Exchange of Notes Signed at Washington December 31, 1987;
Transmitted by the President of the United States of America to the Senate February 29, 1988
(Treaty Doc. No. 100-15, 100th Cong., 2d Sess.);
Reported Favorably by the Senate Committee on Foreign Relations September 22, 1988 (S. Ex.
Rept. No.100-24, 100th Cong., 2d Sess.);
Advice and Consent to Ratification by the Senate October 22, 1988;
Ratified by the President December 20, 1988;
Ratified by Belgium June 19, 1989;
Ratifications Exchanged at Brussels July 19, 1989;
Proclaimed by the President September 6, 1989;
Entered into Force August 3, 1989.
SUPPLEMENTARY PROTOCOL TO THE 1970 TAX
CONVENTION WITH BELGIUM
MESSAGE
FROM
THE PRESIDENT OF THE UNITED STATES
TRANSMITTING
THE SUPPLEMENTARY PROTOCOL, TOGETHER WITH A RELATED EXCHANGE OF
NOTES, SIGNED AT WASHINGTON ON DECEMBER 31, 1987, MODIFYING AND

SUPPLEMENTING THE CONVENTION BETWEEN THE UNITED STATES OF AMERICA
AND THE KINGDOM OF BELGIUM FOR THE AVOIDANCE OF DOUBLE TAXATION
AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME,
SIGNED AT BRUSSELS ON JULY 9, 1970
LETTER OF SUBMITTAL (PROTOCOL)
DEPARTMENT OF STATE,
Washington, February 2, 1988.
The PRESIDENT,
The White House.
THE PRESIDENT. I have the honor to submit to you, with a view to its transmission to the Senate
for advice and consent to ratification, a Supplementary Protocol Modifying and Supplementing the
Convention between the United States of America and the Kingdom of Belgium for the Avoidance of
Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, together with
a related exchange of notes. The Supplementary Protocol and the exchange of notes were signed at
Washington on December 31, 1987.
The Convention needs to be modified to reflect changes in the tax laws and treaty policies of the
United States and Belgium since it was concluded in 1970. Pending the successful conclusion of a
comprehensive new convention, Department of the Treasury negotiators have concluded a limited
Protocol addressing an issue of immediate concern to United States investors.
The Protocol will reduce the tax at source on direct investment dividends from 15 percent to 5
percent, effective January 1,1988. This will be beneficial to many United States businesses which,
especially after the Tax Reform Act of 1986, have large excess foreign tax credits with respect to their
foreign income. The Protocol will also provide rules to ensure that the reduced rates of tax provided in
the Convention, as amended by the Protocol, are enjoyed only by residents of the two countries and do
not become the object of "treaty shopping" by others.
The exchange of notes confirms that the French and Dutch texts of the new Article 12A incorporate
the meaning of the English language term "beneficial interest."
A technical memorandum explaining in detail the provisions of the Supplementary Protocol is being
prepared by the Department of the Treasury and will be submitted separately to the Senate Committee
on Foreign Relations.
The Department of the Treasury, with the cooperation of the Department of State, was primarily
responsible for the negotiation of the Supplementary Protocol. It has the approval of both Departments.

Respectfully submitted,
GEORGE P. SHULTZ.
LETTER OF TRANSMITTAL (PROTOCOL)
THE WHITE HOUSE, February 29, 1988.
To the Senate of the United States:
I transmit herewith, for Senate advice and consent to ratification, the Supplementary Protocol
Modifying and Supplementing the Convention between the United States of America and the
Kingdom of Belgium for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with
Respect to Taxes on Income, together with a related exchange of notes. The Supplementary Protocol
and the exchange of notes were signed at Washington on December 31, 1987. I also transmit for the
information of the Senate the report of the Department of State with respect to the Protocol.
Pending the successful conclusion of a comprehensive new income tax convention, the
Supplementary Protocol will make certain improvements in the existing convention intended to promote
the development of economic relations between the United States and Belgium.
It is most desirable that this Protocol be considered by the Senate as soon as possible and that the
Senate give advice and consent to ratification.
RONALD REAGAN.
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
CONSIDERING THAT:
The Supplementary Protocol Modifying and Supplementing the Convention Between the United
States of America and the Kingdom of Belgium for the Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with Respect to Taxes on Income, together with a related exchange of
notes, was signed at Washington on December 31, 1987, the text of which is hereto annexed;
The Senate of the United States of America by its resolution of October 22, 1988, two-thirds of the
Senators present concurring therein, gave its advice and consent to ratification, subject to the
understandings that:
(1) The Treasury Department will effect the negotiation of a new Convention in an expeditious

manner with the objective of modifying the tax rate on dividends specified in paragraph 2 of Article 10
(Dividends) to deny inappropriate relief from taxation at source on dividends paid by Regulated
Investment Companies, Real Estate Investment Trusts, and any other U.S. corporations that essentially
receive conduit treatment for U.S. income tax purposes; and
(2) The Treasury Department will effect the negotiation of a new Convention in an expeditious
manner with the objective of coordinating policy as revised by the Tax Reform Act of 1986.
The Supplementary Protocol, with a related exchange of notes, subject to the said understandings,
was ratified by the President of the United States of America on December 20, 1988, in pursuance of
the advice and consent of the Senate;
It is provided in Article 4 of the Supplementary Protocol that the Supplementary Protocol shall enter
into force on the fifteenth day after the date of the exchange of the instruments of ratification;
The instruments of ratification of the Supplementary Protocol were exchanged at Brussels on July
19, 1989, and accordingly, the Supplementary Protocol and the related exchange of notes, subject to
the said understandings, entered into force on August 3, 1989.
NOW, THEREFORE, I, George Bush, President of the United States of America, proclaim and
make public the Supplementary Protocol, with an exchange of notes, subject to the said understandings,
to the end that it be observed and fulfilled with good faith on and after August 3, 1989, by the United
States of America and by the citizens of the United States of America and all other persons subject to
the jurisdiction thereof.
IN TESTIMONY WHEREOF, I have signed this proclamation and caused the Seal of the United
States of America to be affixed.
DONE at the city of Washington this sixth day of September in the year of our Lord one thousand
nine hundred eighty-nine and of the Independence of the United States of America the two hundred
fourteenth.
By the President:
(s) George Bush
Secretary of State:
(s) James A. Baker, III
SUPPLEMENTARY PROTOCOL MODIFYING AND SUPPLEMENTING THE
CONVENTION BETWEEN THE UNITED STATES OF AMERICA AND THE KINGDOM OF
BELGIUM FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE
PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES SIGNED AT BRUSSELS

ON JULY 9, 1970
The Government of the United States of America
and
the Government of the Kingdom of Belgium,
Desiring to promote the development of the economic relations between the United States of
America and the Kingdom of Belgium,
Considering that, in the course of the ongoing negotiations of a new convention between both
countries, it is desirable to remove certain constraints to such development before the successful
conclusion of the new convention,
Have decided to conclude a supplementary Protocol to the Convention between the United States
of America and the Kingdom of Belgium for the avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income, signed at Brussels on July 9, 1970 (hereinafter "the
Convention") and
Have agreed upon the following articles:
ARTICLE 1
The text of Article 10 (Dividends) of the Convention is suspended and replaced by the following:
1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other
Contracting State may be taxed in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the company
paying the dividends is a resident, and according to the laws of that State, but if the beneficial owner of
the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:
(a) 5 percent of the gross amount of the dividends if the beneficial owner is a company
which owns directly at least 10 percent of the voting stock of the company paying the dividends;
(b) 15 percent of the gross amount of the dividends in all other cases.
This paragraph shall not affect the taxation of the company in respect of the profits out of which the
dividends are paid.
3. The term "dividends" as used in this Article means income from shares, "jouissance" shares or
"jouissance" rights, mining shares, founders' shares or other rights, not being debt-claims, participating in
profits, as well as income from other corporate rights which is subjected to the same taxation treatment
as income from shares by the laws of the State of which the company making the distribution is a
resident. This term also includes income - even if paid in the form of interest - which is taxable as
income from capital invested by the members of a company, other than a company with share capital,
which is a resident of Belgium.

4. The provisions (1) and (2) shall not apply if the beneficial owner of the dividends, being a resident
of a Contracting State, carries on business in the other Contracting State of which the company paying
the dividends is a resident, through a permanent establishment situated therein, or performs in that other
State independent personal services from a fixed base situated therein, and the holding in respect of
which the dividends are paid forms part of the assets of such permanent establishment or fixed base. In
such case, the provisions of Article 7 (Business Profits) or Article 14 (Independent Personal Services),
as the case may be, shall apply.
5. Where a company which is a resident of a Contracting State pays dividends, the other
Contracting State may not impose any tax on the dividends paid by that company to a resident of the
first-mentioned State, except insofar as the holding in respect of which the dividends are paid forms part
of the assets of a permanent establishment or a fixed base situated in that other State.
6. For the purpose of paragraph (4) and notwithstanding any other provision of the Convention,
dividends paid by a company which is a resident of Belgium in respect of a holding which forms part of
the assets of a permanent establishment situated in Belgium, may be taxed separately in accordance with
Belgian law.
ARTICLE 2
In paragraph (5) of Article 11 (Interest) of the Convention, the words "paragraph (3) of Article 10
(Dividends)" shall be substituted for the words "paragraph (2) of Article 10 (Dividends)".
ARTICLE 3
The following Article is inserted in the Convention between Article 12 (Royalties) and Article 13
(Capital Gains):
ARTICLE 12A
(Limitation on Benefits)
1. A person (other than an individual) which is a resident of a Contracting State and derives
dividends, interest or royalties from the other Contracting State shall not be entitled under Articles 10
(Dividends), 11 (Interest) or 12 (Royalties) to relief from taxation in that other Contracting State unless:
(a) both of the following conditions are satisfied:
(i) more than 50 percent of the beneficial interest in such person (or in the case
of a company, more than 50 percent of the number of shares of each class of the
company's shares) is owned, directly or indirectly, by one or more individual residents
of one of the Contracting States, one of the Contracting States or its political
subdivisions or local authorities, or citizens of the United States; and
(ii) more than 50 percent of the gross income of such person is not used,

directly or indirectly, to meet liabilities for interest or royalties to persons who are not
residents of one of the Contracting States, one of the Contracting States or its political
subdivisions or local authorities, or citizens of the United States; or
(b) the dividends, interest or royalties derived from the other Contracting State are
derived in connection with, or are incidental to, the active conduct by such person of a trade or
business in the first-mentioned State (other than a business the principal activities of which are
making or managing investments in the other Contracting State); or
(c) the person deriving the dividends, interest or royalties is a resident of a Contracting
State either in whose principal class of shares there is substantial and regular trading on a
recognized securities exchange, or more than 50 percent of whose shares of each class is
owned by a resident of that Contracting State in whose principal class of shares there is such
substantial and regular trading on a recognized securities exchange.
2. For purposes of subparagraph (1)(a)(ii), the term “gross income” means:
(a) in the case of the United States, gross income as defined under the Internal Revenue
Code of 1986, as may be amended from time to time, without regard to the geographic source
of the income.
(b) in the case of Belgium, gross receipts, or where an enterprise is engaged in a
business which includes the manufacture or production of goods, gross receipts reduced by the
direct costs of labor and materials attributable to such manufacture or production and paid or
payable out of such receipts.
3. For purposes of subparagraph (1)(c), the term "recognized securities exchange" means:
(a) the NASDAQ System owned by the National Association of Securities Dealers,
Inc. and any stock exchange registered with the Securities and Exchange Commission as a
national securities exchange for purposes of the Securities Exchange Act of 1934;
(b) the Belgian stock exchanges; and
(c) any other securities exchange agreed upon by the competent authorities of the
Contracting States.
ARTICLE 4
1. This supplementary Protocol, which shall form an integral part of the Convention signed at
Brussels on July 9, 1970, shall be ratified and the instruments of ratification shall be exchanged at
Brussels as soon as possible.
2. This supplementary Protocol shall enter into force on the fifteenth day after the date of the
exchange of the instruments of ratifications and its provisions shall have effect with respect to dividends,
interest and royalties credited or paid on or after January 1, 1988.
ARTICLE 5

This supplementary Protocol shall remain in force as long as the Convention's in effect and in the
event of termination of such Convention shall terminate simultaneously with such Convention. However,
either Contracting State may terminate separately this supplementary Protocol, through diplomatic
channels, by giving to the other Contracting State at least six months' written notice of termination at any
time after five years from the day on which it enters into force. In such event, the supplementary
Protocol shall cease to have effect with respect to dividends, interest and royalties credited or paid on
or after the first day of January 1 next following the expiration of the six-month period and the
provisions of the Convention, as effective on December 31, 1987, shall have effect with respect to such
amounts.
IN WITNESS WHEREOF the undersigned, being duly authorized thereto by their respective
Governments, have signed this supplementary Protocol.
DONE at Washington in duplicate, in the English, French and Dutch languages, the three texts being
equally authentic, this 31st date of December, 1987.
FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF
UNITED STATES OF AMERICA: THE KINGDOM OF BELGIUM:
(s) William Bodde, Jr. (s) Herman Dehennin.
NOTES OF EXCHANGE (PROTOCOL)
DEPARTMENT OF STATE,
WASHINGTON
December 31, 1987.
His Excellency
Herman Dehennin,
Ambassador of Belgium.
Excellency: I have the honor to refer to the Supplementary Protocol Modifying and Supplementing
the Convention between the Government of the United States of America and the Government of the
Kingdom of Belgium for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion, signed
at Brussels on July 9, 1970. The Protocol has been signed at Washington on this date. During the
course of the discussions regarding the Protocol, one question arose with respect to which it was
deemed appropriate to exchange Notes recording the agreement reached by the delegations from our
two countries.
Article 3 of the Protocol adds a new Article 12A to the Convention, which provides that, unless
certain alternative conditions are satisfied, a person (other than an individual) which is a resident of a

Contracting State and derives dividends, interest, or royalties from the other Contracting State shall not
be entitled under the Dividends, Interest, and Royalties Articles of the Convention to relief from taxation
in the other Contracting State unless (in the language of the English text of the Protocol) more than 50
percent of the "beneficial interest" in such person is owned by one or more individual residents of one of
the Contracting States, one of the Contracting States or its political subdivisions or local authorities, or
citizens of the United States (hereinafter "listed persons").
The delegations agreed that the French and Dutch language texts of the new Article 12A
incorporate the meaning of the English language term "beneficial interest." Specifically, for the condition
in the preceding paragraph to be satisfied, more than 50 percent of the rights to income and other
economic rights in the person claiming treaty benefits must be owned by one or more of the listed
persons. In the case of a trust claiming treaty benefits, for example, more than 50 percent of the interests
held by beneficiaries of the trust must be held by listed persons for the condition to be satisfied; the
identities of the legal owners of the trust are irrelevant for this purpose.
If this is in accord with your understanding, I would appreciate a confirmation from you to this
effect.
Accept, Excellency, the renewed assurances of my highest consideration.
For the Secretary of State:
William Bodde, Jr.
EMBASSY OF BELGIUM
3330 GARFIELD STREET, N.W.
WASHINGTON, D.C. 20008
December 31, 1987.
His Excellency
George P. Shultz,
Secretary of State,
Washington.
Excellency: I have the honour to acknowledge the receipt of Your Excellency's note of today's date
which reads as follows:
“Excellency: I have the honour to refer to the Supplementary Protocol Modifying and
Supplementing the Convention between the Government of the United States of America and the
Government of the Kingdom of Belgium for the Avoidance of Double Taxation and the Prevention of

Fiscal Evasion, signed at Brussels on July 9, 1970. The Protocol has been signed at Washington on this
date. During the course of the discussions regarding the Protocol, one question arose with respect to
which it was deemed appropriate to exchange Notes recording the agreement reached by the
delegations from our two countries.
Article 3 of the Protocol adds a new Article 12A to the Convention, which provides that, unless
certain alternative conditions are satisfied, a person (other than an individual) which is a resident of a
Contracting State and derives dividends, interest, or royalties from the other Contracting State shall not
be entitled under the Dividends, Interest, and Royalties Articles of the Convention to relief from
Taxation in the other Contracting State unless (in the language of the English text of the Protocol) more
than 50 percent of the “beneficial interest” in such person is owned by one or more individual residents
of one of the Contracting States, one of the Contracting States or its political subdivisions or local
authorities, or citizens of the United States (hereinafter "listed persons").
The delegations agreed that the French and Dutch language texts of the new Article 12A
incorporate the meaning of the English language term "beneficial interest." Specifically, for the condition
in the preceding paragraph to be satisfied, more than 50 percent of the rights to income and other
economic rights in the person claiming treaty benefits must be owned by one or more of the listed
persons. In the case of a trust claiming treaty benefits, for example, more than 50 percent of the interests
held by beneficiaries of the trust must be held by listed persons for the condition to be satisfied; the
identities of the legal owners of the trust are irrelevant for this purpose.
If this is in accord with your understanding, I would appreciate a confirmation from you to this
effect.
Accept, Excellency, the renewed assurances of my highest consideration.”
I confirm this understanding on behalf of the Government of the Kingdom of Belgium.
I take the opportunity to renew to Your Excellency the assurances of my highest consideration.
Herman Dehennin,
Ambassador of Belgium.