BELGIUM [ S.L.123.05 SUBSIDIARY LEGISLATION 123.05 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM ORDER 20th August, 1976 13th September, 2013* LEGAL NOTICE 108
1976, as amended by Legal Notice 83
2003 and 274
2013, as modified by S.L.123.183. 1. The title
this Order is Double Taxation Relief Double Taxation Relief on Taxes on Income with the Kingdom
Belgium Order. 2. It is hereby declared (a) that the arrangements specified in the Agreement set out in the Schedule to this Order have been made with the Government
the Kingdom
Belgium with a view to affording relief from double taxation and preventing fiscal evasion in relation to the following taxes imposed by the laws
the Kingdom
Belgium: (
2020. Title. Arrangements to have effect. 1 [ S.L.123.05 2 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM SCHEDULE Amended by: L.N. 83
2003; L.N. 274
2013. AGREEMENT BETWEEN THE STATE
MALTA AND THE KINGDOM
BELGIUM FOR THE AVOIDANCE
DOUBLE TAXATION AND THE PREVENTION
FISCAL EVASION The Government
the State
Malta and the Government
the Kingdom
Belgium, desiring to conclude an Agreement for the avoidance
double taxation and the prevention
fiscal evasion, have agreed as follows: I. Scope
the Agreement ARTICLE 1 Personal scope This Agreement shall apply to persons who are residents
one or both
the Contracting States. ARTICLE 2 Taxes covered
each Contracting State or its political subdivisions or local authorities, irrespective
the manner in which they are levied.
income or
capital, including taxes on gains from the alienation
movable or immovable property, taxes on the total amounts
wages and salaries paid by enterprises, as well as taxes an capital appreciation.
tax whether made by deduction at source or otherwise, (hereinafter referred to as "Malta tax"). DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM [ S.L.123.05 3
signature
this Agreement in addition to, or in place
, the existing taxes. The competent authorities
the Contracting States shall notify to each other any changes which have been made in their respective taxation laws.
the income as is remitted to or received in the other State. II. Definitions ARTICLE 3 General definitions
Belgium, including the territorial waters thereof, and any area outside the territorial sea
Belgium which, in accordance with international law, has been or may hereafter be designated, under the laws
Belgium concerning the continental shelf, as an area within which the rights
Belgium with respect to the sea-bed and subsoil and their natural resources may be exercised; (b) the term "Malta", when used in a geographical sense, means the Island
Malta, the Island
Gozo and the other islands
the Maltese archipelago, including the territorial waters thereof, and any area outside the territorial sea
Malta which, in accordance with international law, has been or may hereafter be designated, under the laws
Malta concerning the continental shelf, as an area within which the rights
Malta with respect to the sea-bed and subsoil and their natural resources may be exercised; (
persons; (
a Contracting State" and "enterprise
the other Contracting State" mean, respectively, an enterprise carried on by a resident
a Contracting State and an enterprise carried on by a resident
the other Contracting State; (
Belgium any individual possessing the nationality
Belgium and any legal person, partnership and association deriving its status as such from the law in force in Belgium; (ii) in respect
Malta, any citizen
Malta as provided for in Chapter III
the Constitution
Malta and in the Maltese Citizenship Act, and any [ S.L.123.05 4 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM legal person, partnership and association deriving its status as such from the law in force in Malta; (h) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place
effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; (i) the term "competent authority" means: (i) in the case
Belgium, the Minister responsible for finance or his authorised representative; (ii) in the case
Malta, the Minister responsible for finance or his authorised representative.
this Agreement by a Contracting State, any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the law
that Contracting State relating to the taxes which are the subject
this Agreement. ARTICLE 4 Fiscal Domicile
this Agreement, the term "resident
a Contracting State" means any person, whose income is subject to tax in that State, by reason
his domicile, residence, place
management or any other criterion
a similar nature, but does not include any person who is liable to tax in that Contracting State in respect only
income from sources therein or capital situated in that State.
the provisions
paragraph
both Contracting States, then his case shall be determined in accordance with the following rules: (a) He shall be deemed to be a resident
the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident
the Contracting State with which his personal and economic relations are closest (centre
vital interests). (b) If the Contracting State in which he has his centre
vital interests cannot be determined, or if he has no permanent home available to him, in either Contracting State, he shall be deemed to be a resident
the Contracting State in which he has an habitual abode. (c) If he has an habitual abode in both Contracting States or in neither
them, he shall be deemed to be a resident
the Contracting State
which he is a national. (d) If he is a national
both Contracting States or
neither
them, the competent authorities
the Contracting States shall settle the question by mutual agreement.
the provisions
paragraph
both Contracting States, then it shall be deemed to be a resident
the Contracting State in which its place
effective management is situated. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM [ S.L.123.05 5 ARTICLE 5 Permanent establishment
this Agreement the term "permanent establishment" means a fixed place
business in which the business
the enterprise is wholly or partly carried on.
management; (
fice; (
extraction
natural resources; (g) a building site or construction or assembly project which exists for more than twelve months.
facilities solely for the purpose
storage, display or delivery
goods or merchandise belonging to the enterprise; (b) the maintenance
a stock
goods or merchandise belonging to the enterprise solely for the purpose
storage, display or delivery; (c) the maintenance
a stock
goods or merchandise belonging to the enterprise solely for the purpose
processing by another enterprise; (d) the maintenance
a fixed place
business solely for the purpose
purchasing goods or merchandise, or for collecting information, for the enterprise; (e) the maintenance
a fixed place
business solely for the purpose
advertising, for the supply
information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise.
an enterprise
the other Contracting State - other than an agent
an independent status to whom paragraph
the enterprise, unless his activities are limited to the purchase
goods or merchandise for the enterprise.
a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent
an independent status, where such persons are acting in the ordinary course
their business.
a Contracting State controls or is controlled by a company, which is a resident
the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not
itself make either company a permanent establishment
the other. 6 [ S.L.123.05 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM III. Taxation
Income ARTICLE 6 Income from immovable property
the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, rights to which the provisions
general law respecting immovable property apply, usufruct
immovable property and rights to variable or fixed payments as consideration for the working
, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.
paragraph
immovable property.
paragraphs
an enterprise and to income from immovable property used for the performance
professional services. ARTICLE 7 Business profits
an enterprise
a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits
the enterprise may be taxed in the other State but only so much
them as is attributable to that permanent establishment.
paragraph
a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities and the same or similar conditions and dealing wholly independently with the enterprise
which it is a permanent establishment.
the profits
a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purpose
the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.
an apportionment
the total profits
the enterprise to its various parts, nothing in paragraph
apportionment adopted shall, however, be such that the result shall be in accordance with the principles laid down in this Article.
the mere purchase by that permanent establishment
goods or merchandise for the enterprise. For the purposes
the preceding paragraphs, the profits to be attributed DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM [ S.L.123.05 7 to the permanent establishment, shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
income which are dealt with separately in other Articles
this Agreement, then the provisions
these Articles shall not be affected by the provisions
this Article. ARTICLE 8 Shipping and air transport
ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place
effective management
the enterprise is situated.
effective management
a shipping enterprise is aboard a ship, then it shall be decided to be situated in the Contracting State in which the home harbour
the ship is situated, or, if there is no such home harbour, in the Contracting State
which the operator
the ship is a resident.
paragraph
a Contracting State participates directly or indirectly in the arrangement, control or capital
an enterprise
the other Contracting State, or (b) the same persons participate directly or indirectly in the management, control or capital
an enterprise
a Contracting State and an enterprise
the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one
the enterprises, but by reason
those conditions, have not so accrued, may be included in the profits
that enterprise and taxed accordingly. ARTICLE 10 Dividends
a Contracting State to a resident
the other Contracting State may be taxed in that other State.
which the company paying the dividends is a resident and according to the law
that State, but (a) where dividends are paid by a company resident
Belgium to a resident
Malta who is the beneficial owner thereof, the tax so charged shall not exceed 15 per cent
the gross amount
the dividends; this provision shall not affect the taxation
the Belgian company in respect
the profits out
which the dividends are paid; [ S.L.123.05 8 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM (b) where dividends are paid by a company resident
Malta to a resident
Belgium who is the beneficial owner thereof (i) Malta tax shall not exceed that chargeable on the company paying the dividends in respect
the profits so distributed; (ii) notwithstanding the provisions
sub-paragraph (i) hereof, Malta tax shall not exceed 15 per cent
the dividends if such dividends are paid out
gains or profits earned in any year in respect
which the company is in receipt
any benefit under the provisions regulating aids to industries in Malta, and the shareholder submits returns and accounts to the taxation authorities
Malta in respect
his income liable to Malta tax for the relative year
assessment.
the State
which the Company making the distribution is a resident. This term means also income, even when paid in the form
interest, which is taxable under the head
income on capital invested by the members
a company other than a company with share capital, which is a resident
Belgium.
paragraphs
the dividends, being a resident
a Contracting State, carries on business in the other Contracting State,
which the company paying the dividends is a resident through a permanent establishment situated therein or performs in that other State professional services from a fixed base situated therein and the holding in respect
which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case, the dividends may be taxed by that other State in accordance with its law.
one
the Contracting States derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company to residents
the first mentioned State, or subject the company’s undistributed profits to a tax on undistributed profits even if the dividends paid or the undistributed profits consist wholly or partly
profits or income arising in that other State; this provision shall not prevent that other State from taxing dividends relating to a holding which is effectively connected with a permanent establishment maintained in that other State by a resident
the first-mentioned State. ARTICLE 11 Interest
the other Contracting State may be taxed in that other State.
that State, but if the recipient is the beneficial owner
the interest, the tax so charged shall not exceed 10 per cent
the amount
the interest.
paragraph
Malta, the Central DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM [ S.L.123.05 9 Bank
Malta or any other institution the capital
which is wholly owned by the State
Malta shall be exempt from Belgian tax; (b) interest arising in Malta and paid to the Kingdom
Belgium, the National Bank
Belgium or any other institution the capital
which is wholly owned by the Kingdom
Belgium shall be exempt from Malta tax; (c) interest on commercial debt-claims - including debt-claims represented by negotiable instruments - resulting from deferred payments for goods, merchandise or services supplied by an enterprise
a Contracting State shall be exempt from tax in the other Contracting State.
every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor’s profits, and, in particular, income from Government securities and income from bonds or debentures, including premiums and prizes attaching to bonds or debentures, as well as income assimilated to or taxed in the same way as income from money lent by the taxation law
the State in which the income arises. However, the term "interest" does not include for the purpose
this Article, penalty charges far late payment nor interest treated as dividends under paragraph
paragraphs
the interest, being a resident
a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment situated therein or performs in that other State professional services from a fixed base situated therein and the debt-claim in respect
which the interest is paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions
or Article 14
this Agreement, as the case may be, shall apply.
that State. Where, however, the person paying the interest whether he is a resident
a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness
which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated.
them and some other person, the amount
the interest paid, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence
such relationship, the provisions
this Article shall apply only to the last mentioned amount. In that case, the excess part
the payments shall remain taxable according to the law
each Contracting State, due regard being had to the other provisions
this Agreement. ARTICLE 12 Royalties
the other Contracting State shall be taxable only in that other State if such resident is the beneficial owner
the royalties and the royalties consist
payments
any kind received as a consideration for the use
, or the right to use, any copyright
10 [ S.L.123.05 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM literary, artistic or scientific work, including cinematographic films or tapes for television or broadcasting.
the other Contracting State may be taxed in that other Contracting State if the royalties consist
payments
any kind received as a consideration for the use
, or the right to use, any patent, trade mark, design, model, plan, secret formula or process, industrial, commercial or scientific equipment, or information concerning industrial, commercial or scientific experience. However, such royalties may also be taxed in the Contracting State in which they arise, and according to the law
that State, but if the recipient is the beneficial owner
the royalties, the tax so charged shall not exceed 10 per cent
the gross amount
such royalties.
paragraphs
this Article shall not apply if the recipient
the royalties, being a resident
a Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment situated therein, or performs in that other State professional services from a fixed base situated therein, and the right or property in respect
which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions
or Article 14
this Agreement, as the case may be, shall apply.
that State. Where, however, the person paying the royalties, whether he is a resident
a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the contract under which the royalties are paid was concluded, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment is situated.
them and some other person, the amount
the royalties paid having regard to the use, right or information for which they are paid exceeds the amount which would have been agreed upon by the payer and the recipient in the absence
such relationship, the provisions
this Article shall apply only to the last-mentioned amount. In that case, the excess paid
the payments shall remain taxable according to the law
each Contracting State, due regard being had to the other provisions
this Agreement. ARTICLE 13 Capital gains
immovable property, as defined in paragraph
movable property forming part
the business property
a permanent establishment which an enterprise
a Contracting State has in the other Contracting State or
movable property pertaining to a fixed base available to a resident
a Contracting State in the other Contracting State for the purpose
performing professional services, including such gains from the alienation
such a permanent establishment (alone or together with the whole enterprise) or
such a fixed base, may be taxed in the other State. However, gains from the alienation
moveable property
the kind referred to in paragraph
shall be taxable only in the Contracting State in which such movable DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM [ S.L.123.05 11 property is taxable according to the said Article.
any property other than those mentioned in paragraphs
which the alienator is a resident. ARTICLE 14 Independent personal services (l) Income derived by a resident
a Contracting State in respect
professional services or other independent activities
a similar character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose
performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much
it as is attributable to that fixed base.
physicians, lawyers, engineers, architects, dentists and accountants. ARTICLE 15 Dependent personal services
Articles 13, 18, 19 and 20, salaries, wages and other similar remuneration derived by a resident
a Contracting State in respect
an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.
paragraph
a Contracting State in respect
an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: (
, an employer who is not a resident
the other State, and (c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
this Article, remuneration in respect
an employment exercised aboard a ship or aircraft in international traffic, may be taxed in the Contracting State in which the place
effective management
the enterprise is situated. ARTICLE 16 Company Managers
a contracting State in his capacity as a member
the board
directors or a similar organ
a company which is a resident
the other Contracting State may be taxed in that other State. This provision shall also apply to payment derived in respect
the discharge
functions which, under the law
the Contracting State
which the 12 [ S.L.123.05 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM company is a resident, are regarded as functions
a similar nature as those performed by a person referred to in the said provision.
the discharge
day-to-day functions
a managerial or technical nature and remuneration received by a resident
a Contracting State in respect
his personal activity as a partner
a company, other than a company with share capital, which is a resident
the other Contracting State, may be taxed in accordance with the provisions
, as if the remuneration were remuneration
an employee in respect
an employment and as if references to the employer were references to the company. ARTICLE 17 Artistes and athletes
Articles 14 and 15, income derived by public entertainers, such as theatre, motion picture, radio or television artistes, and musicians, and by athletes, from their personal activities as such may be taxed in the Contracting State in which these activities are exercised.
personal activities as such
an entertainer or athlete accrues not to that entertainer or athlete himself but to another person, that income may, notwithstanding the provisions
Articles 7, 14 and 15, be taxed in the Contracting State in which the activities
the entertainer or athlete are exercised. ARTICLE 18 Pensions
paragraph
, pensions and other similar remuneration paid to a resident
a Contracting State in consideration
past employment shall be taxable only in that State.
a Contracting State or under a public scheme organised by a Contracting State in order to supplement the benefits
that legislation shall be taxed in that State. ARTICLE 19 Government Service
services rendered in that State or subdivision or local authority thereof shall be taxable only in that State. (b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the recipient is a resident
that other Contracting State who: (i) is a national
that State; or (ii) did not become a resident
that State solely for the purpose
performing the services.
funds created by a Contracting State or a political subdivision or a local authority thereof to any individual in respect
services rendered to that State or subdivision or local authority thereof shall be DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM [ S.L.123.05 13 taxable only in that State. (b) However, such pension shall be taxable only in the other Contracting State if the recipient is a national
and a resident
that State.
paragraph
remuneration paid under a development assistance programme
a Contracting State, a political subdivision or a local authority thereof, out
funds exclusively supplied by that State, those political subdivisions or local authorities thereof, to a specialist or volunteer seconded to the other Contracting State with the consent
that other State.
Articles 15, 16 and 18 shall apply to remuneration and pensions in respect
services rendered in connection with any business carried on by a Contracting State or a political subdivision or a local authority thereof. ARTICLE 20 Teachers, students and trainees
a Contracting State and who visits the other Contracting State for a period not exceeding two years for the purpose
carrying out advanced study or research or for teaching at a university or any other recognized educational institution receives for such work shall not be taxed in that other State.
a Contracting State immediately before visiting the other Contracting State and is temporarily present in that other State solely as a student at a university or any other recognized educational institution in that other State or as a business apprentice shall, from the date
his first arrival in that other State in connection with that visit, be exempt from tax in that other State: (a) on all remittances from abroad for purposes
his maintenance, education or training; and (b) for a period not exceeding in the aggregate four years, on any remuneration not exceeding 120,000 Belgian Francs or the equivalent in Malta currency, for each calendar year for personal services rendered in that other Contracting State with a view to supplementing the resources available to him for such purposes.
a Contracting State immediately before visiting the other Contracting State and is temporarily present in that other State solely for the purpose
study, research or training as a recipient
a grant, allowance or award f rom a scientific, educati onal, r elig ious o r ch arit able organisation or under a technical assistance programme entered into by the Government
a Contracting State shall, from the date
his first arrival in that other State in connection with that visit, be exempt from tax in that other State: (a) on the amount
such grant, allowance or award: and (b) on all remittances from abroad for the purposes
his maintenance, education or training. ARTICLE 21 Other income
income
a resident
a Contracting State, wherever arising, not dealt with in the foregoing Articles
this Agreement shall be taxable only in that State. 14 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM [ S.L.123.05
paragraph
the income, being a resident
a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State professional services from a fixed base situated therein, and the right or property in respect
which the income is paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions
IV. Taxation
Capital ARTICLE 22
the business property
a permanent establishment
an enterprise, or by moveable property pertaining to a fixed base used for the performance
professional services, may be taxed in the Contracting State in which the permanent establishment or fixed base is situated.
such ships and aircraft, shall be taxable only in the Contracting State in which the place
effective management
the enterprise is situated.
capital
a resident
a Contracting State shall be taxable only in that State. V. Elimination
Double Taxation ARTICLE 23
Belgium, double taxation shall be avoided as follows: (a) Where a resident
Belgium derives income or owns items
capital which may be taxed in Malta in accordance with the provisions
this Agreement, other than those
subparagraph (b)
paragraph
,
paragraphs
and
paragraphs
, Belgium shall exempt such income or such items
capital from tax but may, in calculating the amount
tax on the remaining income or capital
that resident, apply the rate
tax which would have been applicable if such income or items
capital had not been exempted. (
the Belgian law regarding the allowance as a credit against Belgian tax
taxes paid abroad, when a resident
Belgium derives items
his aggregate income for Belgian tax purposes which are dividends taxable in accordance with paragraph
, the Malta tax levied on that income shall be allowed as a credit against Belgian tax relating to such income. (ii) Belgium shall also allow the credit provided for in (i)
this DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM [ S.L.123.05 15 subparagraph in respect
tax chargeable on dividends or interest derived from direct investment which are taxable in Malta by virtue
the Agreement and the general law
Malta where such tax is temporarily remitted or reduced under special provisions designed to promote the economic development
Malta. Such credit shall apply for the first five years for which the Supplementary Agreement is effective; however the competent authorities
the Contracting States may consult each other to determine whether this period
time shall be extended or not. The term ''dividends or interest derived from direct investment'' means dividends paid in respect
shares or interest paid in respect
debtclaims which are directly and durably connected with industrial or commercial development projects in Malta.. (c) Where a company which is a resident
Belgium owns shares in a company which is a resident
Malta, dividends which are paid to it by the latter company and which may be taxed in Malta in accordance with subparagraph (b)
paragraph
, shall be exempt from the corporate income tax in Belgium under the conditions and within the limits provided for in Belgian law. (d) When, in accordance with Belgian law, losses
a Belgian enterprise attributable to a permanent establishment situated in Malta have been effectively deducted from the profits
that enterprise for its taxation in Belgium, the exemption provided in sub-paragraph (a) shall not apply in Belgium to the profits
other taxable periods attributable to that establishment to the extent that those profits have also been exempted from tax by Malta by reason
compensation for the said losses.
Malta, double taxation shall be avoided as follows: Subject to the provisions
the law
Malta regarding the allowance
a credit against Malta tax in respect
foreign tax, where, in accordance with the provisions
this Agreement, there is included in a Malta assessment income from sources within Belgium or elements
capital situated in Belgium, the Belgian tax on such income or elements
capital shall be allowed as a credit against Malta tax payable thereon. VI. Special Provisions ARTICLE 24 Non-discrimination
, the nationals
a Contracting State, whether or not they are residents
one
the Contracting States, shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals
that other State in the same circumstances are or may be subjected.
a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises
that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents
the other Contracting State any personal allowances, reliefs and 16 [ S.L.123.05 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM reductions for taxation purposes on account
civil status or family responsibilities which it grants to its own residents.
apply, interest, royalties and other disbursements paid by an enterprise
a Contracting State to a resident
the other Contracting State shall, for the purpose
determining the taxable profits
such enterprise, be deductible under the same conditions as if they had been paid to a resident
the firstmentioned State. Similarly, any debts
an enterprise
a Contracting State to a resident
the other Contracting State shall, for the purpose
determining the taxable capital
such enterprise, be deductible as if they had been contracted to a resident
the first-mentioned State.
a Contracting State, the capital
which is wholly or partly owned or controlled, directly or indirectly, by one or more residents
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 other similar enterprises
that first-mentioned State are or may be subjected
the profits attributable to a permanent establishment in Belgium
a company being a resident
Malta or
an association having its place
effective management in Malta at the rate
tax provided by the Belgian law, but this rate may not exceed the maximum rate applicable to the whole or a portion
the profits
companies which are residents
Belgium; (b) from imposing the movable property prepayment on dividends derived from a holding which is effectively connected with a permanent establishment or a fixed base maintained in Belgium by a company which is a resident
Malta or by an association which has its place
effective management in Malta and is taxable as a body corporate in Belgium.
every kind and description. ARTICLE 25 Mutual agreement procedure
a Contracting State considers that the actions
one or both
the Contracting States result or will result for him in taxation not in accordance with this Agreement, he may, saving the remedies provided by the national laws
those States, present his case to the competent authority
the Contracting State
which he is a resident. This case must be presented within three years
the first notification
the action which gives rise to taxation not in accordance with the Agreement.
the other Contracting State, with a view to the avoidance
taxation not in accordance with the Agreement.
the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the application
the Agreement. DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM [ S.L.123.05 17
the Contracting States shall agree on administrative measures necessary to carry out the provisions
the Agreement, particularly on the proofs to be furnished by residents
either Contracting State in order to benefit in the other Contracting State from the exemptions and reductions provided for in the Agreement.
the Contracting States shall communicate directly with each other for the application
the Agreement. ARTICLE 26 Exchange
information
the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions
this Agreement or to the administration or enforcement
the domestic laws concerning taxes
every kind and description imposed by or on behalf
the Contracting States, insofar as the taxation thereunder is not contrary to the Agreement. The exchange
information is not restricted by Articles 1 and 2.
that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection
, the enforcement or prosecution in respect
, the determination
appeals in relation to the taxes referred to in paragraph 1, or the oversight
the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes when such information may be used for such other purposes under the laws
both States and the competent authority
the supplying State authorises such use.
paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation: (a) to carry out administrative measures at variance with the laws and administrative practice
that or
the other Contracting State; (b) to supply information which is not obtainable under the laws or in the normal course
the administration
that or
the other Contracting State; (c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure
which would be contrary to public policy (ordre public).
this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations
paragraph 3
this Article but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.
paragraph 3
this Article be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, trust, foundation, nominee or 18 [ S.L.123.05 DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person. In order to obtain such information the tax administration
the requested Contracting State shall have the power to ask for the disclosure
information and to conduct investigations and hearings notwithstanding any contrary provisions in its domestic tax laws.ARTICLE 27 Diplomatic and Consular
ficials
international law or under the provisions
special agreements.
this Agreement, persons who are members
a diplomatic or consular mission
a Contracting State in the other Contracting State or in a third State and who are nationals
the sending State, shall be deemed to be residents
the sending State if they are subjected therein to the same obligations in respect
taxes on income and capital as are residents
that State. VII. Final Provisions ARTICLE 28 Entry into force
ratification shall be exchanged at Brussels as soon as possible.
exchange
instruments
ratification, and its provisions shall have effect (a) in Belgium: (i) in respect
taxes due at source on income credited or payable on or after the first day
January in the calendar year immediately following that in which the instruments
ratification have been exchanged; (ii) in respect
taxes other than taxes due at source, on income
any accounting period ending on or after the 31st day
December in the calendar year in which the instruments
ratification have been exchanged; (b) in Malta: in respect
taxes which are levied for any year
assessment beginning on or after the first day
January in the calendar year immediately following that in which the instruments
ratification have been exchanged. ARTICLE 29 Termination This Agreement shall remain in force indefinitely but either
the Contracting States may, on or before the thirteenth day
June in any calendar year from the third year following that in which the instruments
ratification have been exchanged, give to the other Contracting State, through diplomatic channels, written notice
termination and, in such event, the Agreement shall cease to have effect (a) in Belgium: (i) in respect
taxes due at source on income credited or payable after the 31st day
December
the calendar year in which the DOUBLE TAXATION RELIEF ON TAXES ON INCOME WITH THE KINGDOM
BELGIUM [ S.L.123.05 19 notice
termination is given; (ii) in respect
taxes other than taxes due at source, on income
any accounting period ending after the 30th day
December
the calendar year in which the notice
termination is given; (b) in Malta: in respect
texes which are levied for the year
assessment beginning on the first day
January
the calendar year immediately following that in which the notice
termination is given and for subsequent years
assessment. IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Agreement. DONE at Brussels this 28th day
June, 1974, in duplicate in the English language. For the Government
The Kingdom
Belgium For the Government
The State
Malta R. VAN ELSLANDE J. ATTARD KINGSWELL PROTOCOL At the signing
the Agreement between the Kingdom
Belgium and the State
Malta for the Avoidance
Double Taxation and the Prevention
Fiscal Evasion, the undersigned have agreed that the following provisions shall form an integral part
the Agreement: Notwithstanding the provisions
the Agreement, profits from the operation
a ship in international traffic derived by a company which is a resident
Malta having more than 25 per cent
its capital owned, directly or indirectly, by persons not residents
Malta, may be taxed in Belgium unless the company proves that the profits derived from the operation
such ship are subject to Malta tax without regard to any relief therefrom as provided for in article 88
the Merchant Shipping Act, or in any identical or similar provision. DONE at Brussels this 28th day
June, 1974, in duplicate in the English language. For the Government
The Kingdom
Belgium For the Government
The State
Malta R. VAN ELSLANDE J. ATTARD KINGSWELL
AI explanation based on the official legal text. Indicative, not a substitute for legal advice.