**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**

**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 as follows:

**Article 1**

**GENERAL SCOPE**

1\. This Convention shall apply only to persons who are residents of one
or both of the Contracting States, except as otherwise provided in the
Convention.

2\. Except as provided in subparagraph a) of paragraph 4 of Article 22
(Relief from Double Taxation), the Convention shall not restrict in any
manner any benefit now or hereafter accorded:

> a\) by the laws of either Contracting State; or

b\) by any other agreement to which the Contracting States are party.

3\. a) Notwithstanding the provisions of sub-paragraph b) of paragraph 2
of this Article:

> i\) for purposes of paragraph 3 of Article XXII (Consultation) of the
> General Agreement on Trade in Services, the Contracting States agree
> that any question arising as to the interpretation or application of
> this Convention and, in particular, whether a taxation measure is
> within the scope of this Convention, shall be determined exclusively
> in accordance with the provisions of Article 24 (Mutual Agreement
> Procedure) of this Convention; and
>
> ii\) the provisions of Article XVII of the General Agreement on Trade
> in Services shall not apply to a taxation measure unless the competent
> authorities agree that the measure is not within the scope of Article
> 23 (Non-Discrimination) of this Convention.

b\) For the purposes of this paragraph, a "measure" is a law,
regulation, rule, procedure, decision, administrative action, or any
similar provision or action.

4\. Except to the extent provided in paragraph 5, this Convention shall
not affect the taxation by a Contracting State of its residents (as
determined under Article 4 (Resident)) and its citizens. Notwithstanding
the other provisions of this Convention, a former citizen or former
long-term resident of a Contracting State may, for the period of ten
years following the loss of such status, be taxed in accordance with the
laws of that Contracting State.

5\. The provisions of paragraph 4 shall not affect:

> a\) the benefits conferred by a Contracting State under paragraph 2 of
> Article 9 (Associated Enterprises), para­graphs 1 b), 2, 5, 6 and 9 of
> Article 17 (Pensions, Social Security, Annuities, Alimony, and Child
> Support), and Articles 22 (Relief from Double Taxation), 23
> (Non‑Discrimination), and 24 (Mutual Agreement Procedure); and
>
> b\) the benefits conferred by a Contracting State under paragraph 7 of
> Article 17 (Pensions, Social Security, Annuities, Alimony, and Child
> Support), Articles 18 (Government Service), 19 (Students, Train­ees,
> Teachers and Researchers), and 27 (Members of Diplomatic Missions and
> Consular Posts), upon individuals who are neither citizens of, nor
> have been admitted for permanent residence in, that State.

6\. An item of income, profit or gain derived through an entity that is
fiscally transparent under the laws of either Contracting State shall be
considered to be derived by a resident of a State to the extent that the
item is treated for purposes of the taxation law of such Contracting
State as the income, profit or gain of a resident.

**Article 2**

### TAXES COVERED

1\. This Convention shall apply to taxes on income imposed on behalf of
a Contracting State irrespective of the manner in which they are levied.

2\. There shall be regarded as taxes on income all taxes imposed on
total income, or on elements of income, including taxes on gains from
the alienation of property.

3\. The existing taxes to which this Convention shall apply are:

a\) in the case of Belgium:

i\) the individual income tax;

ii\) the corporate income tax;

iii\) the income tax on legal entities; and

iv\) the income tax on non-residents;

> including the prepayments and the surcharges on these taxes and
> prepayments;
>
> b\) in the case of the United States:
>
> i\) the Federal income taxes imposed by the Internal Revenue Code (but
> excluding social security taxes); and
>
> ii\) the Federal excise taxes imposed with respect to private
> foundations.

4\. The Convention shall apply also to any identical or substantially
similar taxes that are imposed after the date of signature of the
Convention in addition to, or in place of, the existing taxes. The
competent authorities of the Contracting States shall notify each other
of any changes that have been made in their respective taxation or other
laws that significantly affect their obligations under this Convention.

**Article 3**

### GENERAL DEFINITIONS

1\. For the purposes of this Convention, unless the context otherwise
requires:

> a\) the term \"person\" includes an individual, an estate, a trust, a
> partnership, a company, and any other body of persons;
>
> b\) the term \"company\" means any body corporate or any entity that
> is treated as a body corporate for tax purpos­es according to the laws
> of the state in which it is organized;
>
> c\) the terms \"enterprise of a Contracting State\" and \"enterprise
> of the other Contracting State\" mean respective­ly an enterprise
> carried on by a resident of a Contracting State, and an enterprise
> carried on by a resident of the other Contracting State; the terms
> also include an enterprise carried on by a resident of a Contracting
> State through an entity that is treated as fiscally transparent in
> that Contracting State;

d\) the term "enterprise" applies to the carrying on of any business;

e\) the term "business" includes the performance of professional
services and of other activities of an independent character;

> f\) the term \"international traffic\" means any transport by a ship
> or aircraft, except when such transport is solely between places in a
> Contracting State;

g\) the term \"competent authority\" means:

> i\) in Belgium: the Minister of Finance or his authorized
> representative; and
>
> ii\) in the United States: the Secretary of the Treasury or his
> delegate;
>
> h\) the term "Belgium" means the Kingdom of Belgium; when used in a
> geographical sense, such term means the territory of Belgium and
> includes the territorial sea and the seabed and subsoil and the
> superjacent waters of the adjacent submarine areas beyond the
> territorial sea over which Belgium exercises sovereign rights in
> accordance with international law;
>
> i\) the term \"United States\" means the United States of America, and
> includes the states thereof and the District of Columbia; such term
> also includes the territorial sea thereof and the sea bed and subsoil
> of the submarine areas adjacent to that territorial sea, over which
> the United States exercises sovereign rights in accordance with
> international law; the term, however, does not include Puerto Rico,
> the Virgin Islands, Guam or any other United States possession or
> territory;

j\) the term \"national\" of a Contracting State means:

> i\) any individual possessing the nationality or citizenship of that
> State; and
>
> ii\) any legal person, partnership or association deriving its status
> as such from the laws in force in that State;

k\) the term "pension fund" means any person established in a
Contracting State that is:

> i\) operated principally:
>
> A\) to administer or provide pension or retirement
>
> benefits; or
>
> B\) to earn income for the benefit of one or more arrangements
>
> described in A); and
>
> ii\) is either:
>
> A\) in the case of Belgium, an entity organized under Belgian law and
>
> regulated by the Bank Finance and Insurance Commission; or
>
> B\) in the case of the United States, exempt from tax in the United
>
> States with respect to the activities described in clause i) of this
>
> subparagraph.

2\. As regards the application of the Convention at any time by a
Contracting State, any term not defined therein shall, unless the
context otherwise requires, or the competent authori­ties agree to a
common meaning pursuant to the provisions of Article 24 (Mutual
Agreement Procedure), have the meaning which it has at that time under
the law of that State for the purposes of the taxes to which the
Convention applies, any meaning under the applicable tax laws of that
State prevailing over a meaning given to the term under other laws of
that State.

**Article 4**

**RESIDENT**

1\. For the purposes of this Convention, the term \"resident of a
Contracting State\" means any person who, under the laws of that State,
is liable to tax therein by reason of his domicile, residence,
citizenship, place of management, place of incorpora­tion, or any other
criterion of a similar nature, and also includes that State and any
political subdivision or local authority thereof. This term, however,
does not include any person who is liable to tax in that State in
respect only of income from sources in that State or of profits
attributable to a permanent establishment in that State.

2\. An individual who is a United States citizen or an alien admitted to
the United States for permanent residence (a \"green card\" holder) is a
resident of the United States only if the individual has a substantial
presence, permanent home or habitual abode in the United States and if
that individual is not a resident of a State other than Belgium for the
purposes of a double taxation convention between that State and Belgium.

3\. The term "resident of a Contracting State" includes:

> a\) a pension fund established in that State; and

b\) an organization that is established and maintained in that State
exclusively for religious, charitable, scientific, artistic, cultural,
or educational purposes,

notwithstanding that all or part of its income or gains may be exempt
from tax under the domestic law of that State.

4\. Where, by reason of the provisions of paragraph 1, an individual is
a resident of both Contracting States, then his status shall be
determined as follows:

> a\) he shall be deemed to be a resident only of the State in which he
> has a permanent home available to him; if he has a permanent home
> available to him in both States, he shall be deemed to be a resident
> only of the State with which his personal and economic relations are
> closer (center of vital inter­ests);
>
> b\) if the State in which he has his center of vital interests cannot
> be determined, or if he does not have a permanent home available to
> him in either State, he shall be deemed to be a resident only of the
> State in which he has an habitual abode;
>
> c\) if he has an habitual abode in both States or in neither of them,
> he shall be deemed to be a resident only of the State of which he is a
> national;
>
> d\) if he is a national of both States or of neither of them, the
> competent authorities of the Contracting States shall endeavor to
> settle the question by mutual agreement.

5\. Where by reason of the provisions of paragraph 1 a person other than
an individual is a resident of both Contracting States, the competent
authorities of the Contracting States shall by mutual agreement
procedure endeavor to settle the question. If the competent authorities
do not reach such an agreement, that person shall not be entitled to
claim any benefit provided by the Convention, except those provided by
paragraph 1 of Article 22 (Relief from Double Taxation), by paragraph 1
of Article 23 (Non-Discrimination) and by Article 24 (Mutual Agreement
Procedure).

**Article 5**

### PERMANENT ESTABLISHMENT

1\. For the purposes of this Convention, the term \"permanent
establishment\" means a fixed place of business through which the
business of an enterprise is wholly or partly carried on.

2\. The term \"permanent establishment\" includes especially:

a\) a place of management;

> b\) a branch;

c\) an office;

> d\) a factory;

e\) a workshop; and

> f\) a mine, an oil or gas well, a quarry, or any other place of
> extraction of natural resources.

3\. a) A building site or construction or installation project
constitutes a permanent establishment only if it lasts for more than
twelve months.

> b\) An installation used for the exploration for natural resources
> constitutes a permanent establishment in a Contracting State only if
> it lasts or the activity continues in that State for more than twelve
> months.

4\. Notwithstanding the preceding provisions of this Arti­cle, the term
\"permanent establishment\" shall be deemed not to include:

> a\) the use of facilities solely for the purpose of storage, display
> or delivery of goods or merchandise be­longing to the enterprise;
>
> b\) the maintenance of a stock of goods or merchandise belonging to
> the enterprise solely for the purpose of stor­age, display or delivery;
>
> c\) the maintenance of a stock of goods or merchandise belonging to
> the enterprise solely for the purpose of pro­cessing by another
> enterprise;
>
> d\) the maintenance of a fixed place of business solely for the
> purpose of purchasing goods or merchandise, or of collecting
> information, for the enterprise;
>
> e\) the maintenance of a fixed place of business solely for the
> purpose of carrying on, for the enterprise, any other activity of a
> preparatory or auxiliary character;
>
> f\) the maintenance of a fixed place of business solely for any
> combination of the activities mentioned in subpara­graphs a) through
> e), provided that the overall activity of the fixed place of business
> resulting from this combination is of a preparatory or auxiliary
> character.

5\. Notwithstanding the provisions of paragraphs 1 and 2, where a person
‑- other than an agent of an independent status to whom paragraph 6
applies ‑- is acting on behalf of an enterprise and has and habitually
exercises in a Contracting State an authority to conclude contracts that
are binding on the enterprise, that enterprise shall be deemed to have a
permanent establishment in that State in respect of any activities that
the person undertakes for the enterprise, unless the activities of such
person are limited to those mentioned in paragraph 4 that, if exercised
through a fixed place of business, would not make this fixed place of
business a permanent establishment under the provisions of that
paragraph.

6\. An enterprise shall not be deemed to have a permanent establishment
in a Contracting State merely because it carries on business in that
State through a broker, general commission agent, or any other agent of
an independent status, provided that such persons are acting in the
ordinary course of their business as independent agents.

7\. The fact that a company that is a resident of a Con­tracting State
controls or is controlled by a company that is a resident of the other
Contracting State, or that carries on business in that other State
(whether through a permanent estab­lishment or otherwise), shall not be
taken into account in determining whether either company has a permanent
establishment in that other State.

**Article 6**

**INCOME FROM REAL PROPERTY**

1\. Income derived by a resident of a Contracting State from real
property, including income from agri­culture or forestry, situated in the
other Contracting State may be taxed in that other State.

2\. The term \"real property" shall have the meaning which it has under
the law of the Contracting State in which the property in question is
situated. The term shall in any case include property accessory to real
property (including livestock and equipment used in agriculture and
forestry), rights to which the provisions of general law respecting
landed property apply, usufruct of real property and rights to variable
or fixed payments as consideration for the working of, or the right to
work, mineral deposits, sources and other natural resources. Ships and
aircraft shall not be regarded as real property.

3\. The provisions of paragraph 1 shall apply to income derived from the
direct use, letting, or use in any other form of real property.

4\. The provisions of paragraphs 1 and 3 shall also apply to the income
from real property of an enterprise.

5\. A resident of a Contracting State who is liable to tax in the other
Contracting State on income from real property situated in the other
Contracting State may elect for any taxable year to compute the tax on
such income on a net basis as if such income were business profits
attributable to a permanent estab­lishment in such other State. Any such
election shall be binding for the taxable year of the election and all
subsequent taxable years unless the competent authority of the
Contracting State in which the property is situated agrees to terminate
the election.

**Article 7**

### BUSINESS PROFITS

1\. The profits of an enterprise of 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
of the enterprise may be taxed in the other State but only so much of
them as are attributable to that permanent establishment.

2\. Subject to the provisions of paragraph 3, where an enterprise of 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 that it might be expected to make if it were a distinct and
independent enterprise engaged in the same or similar activities under
the same or similar conditions.

3\. In determining the profits of a permanent establishment, there shall
be allowed as deductions expenses that are incurred for the purposes of
the permanent establish­ment, including executive and general
administrative expenses so incurred, whether in the State in which the
permanent establishment is situated or elsewhere.

4\. No profits shall be attributed to a permanent establishment by
reason of the mere purchase by that permanent establishment of goods or
merchandise for the enterprise.

5\. For the purposes of the preceding paragraphs, the profits to be
attributed to the permanent establishment shall be determined by the
same method year by year unless there is good and sufficient reason to
the contrary.

6\. Where profits include items of income that are dealt with separately
in other Articles of the Convention, then the provisions of those
Articles shall not be affected by the provisions of this Article.

7\. In applying this Article, paragraph 8 of Article 10 (Dividends),
paragraph 4 of Article 11 (Interest), paragraph 3 of Article 12
(Royalties), paragraph 3 of Article 13 (Gains) and paragraph 2 of
Article 20 (Other Income), any income or gain attributable to a
permanent establishment during its existence is taxable in the
Contracting State where such permanent establishment is situat­ed even if
the payments are deferred until such permanent estab­lishment has ceased
to exist.

### Article 8

**SHIPPING AND AIR TRANSPORT**

1\. Profits of an enterprise of a Contracting State from the operation
of ships or aircraft in international traffic shall be taxable only in
that State.

2\. For purposes of this Article, profits from the operation of ships or
aircraft include, but are not limited to:

> a\) profits from the rental of ships or aircraft on a full (time or
> voyage) basis;
>
> b\) profits from the rental on a bareboat basis of ships or aircraft
> if the rental income is incidental to profits from the operation of
> ships or aircraft in international traffic; and
>
> c\) profits from the rental on a bareboat basis of ships or aircraft
> if such ships or aircraft are operated in international traffic by the
> lessee.

Profits derived by an enterprise from the inland transport of property
or passengers within either Contracting State shall be treated as
profits from the operation of ships or aircraft in international traffic
if such transport is undertaken as part of international traffic.

3\. Profits of an enterprise of a Contracting State from the use,
maintenance, or rental of containers (including trailers, barges, and
related equipment for the transport of containers) shall be taxable only
in that Contracting State, except to the extent that those containers or
trailers and related equipment are used for transport solely between
places within the other Contracting State.

4\. The provisions of paragraphs 1 and 3 shall also apply to profits
from participation in a pool, a joint business, or an international
operating agency.

**Article 9**

**ASSOCIATED ENTERPRISES**

1\. Where:

> a\) an enterprise of a Contracting State participates directly or
> indirectly in the management, control or capital of an enterprise of
> the other Contracting State; or
>
> b\) the same persons participate directly or indirectly in the
> management, control, or capital of an enterprise of a Contracting
> State and an enterprise of the other Contracting State,

and in either case conditions are made or imposed between the two
enterprises in their commercial or financial relations that differ from
those that would be made between independent enter­prises, then, any
profits that, but for those conditions, would have accrued to one of the
enterpris­es, but by reason of those conditions have not so accrued, may
be included in the profits of that enterprise and taxed accordingly.

2\. Where a Contracting State includes in the profits of an enterprise
of that State, and taxes accordingly, profits on which an enterprise of
the other Contracting State has been charged to tax in that other State,
and the other Contracting State agrees that the profits so included are
profits that would have accrued to the enterprise of the first‑mentioned
State if the conditions made between the two enterprises had been those
that would have been made between independent enterprises, then that
other State shall make an appropriate adjustment to the amount of the
tax charged therein on those profits. In determining such adjust­ment,
due regard shall be had to the other provisions of this Convention and
the competent authorities of the Contracting States shall if necessary
consult each other.

**Article 10**

**DIVIDENDS**

1\. Dividends paid by a company that 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 dividends are beneficially owned by a
resident of the other Con­tract­ing State, except as otherwise provided,
the tax so charged shall not exceed:

> a\) 5 percent of the gross amount of the dividends if the beneficial
> owner is a company that 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.

3\. Notwithstanding the provisions of paragraph 2, where the company
paying the dividends is a resident of the United States, such dividends
shall not be taxed in the United States if the beneficial owner is:

> a\) a company that is a resident of Belgium that has owned directly or
> indirectly shares representing 80 percent or more of the voting power
> in the company paying the dividends for a 12-month period ending on
> the date on which entitlement to the dividend is determined and:

i\) satisfies the conditions of clause i) or ii) of subparagraph c) of

paragraph 2 of Article 21 (Limitation on Benefits);

ii\) satisfies the conditions of clauses i) and ii) of subparagraph e)

of paragraph 2 of Article 21, provided that the company satisfies the

conditions described in paragraph 4 of that Article with respect to the

dividends;

iii\) is entitled to benefits with respect to the dividends under

paragraph 3 of Article 21; or

> iv\) has received a determination pursuant to paragraph 7 of Article
> 21 with respect to this paragraph; or

b\) a pension fund that is a resident of Belgium, provided that such
dividends are not derived from the carrying on of a business by the
pension fund or through an associated enterprise.

4\. Notwithstanding the provisions of paragraph 2, where the company
paying the dividends is a resident of Belgium, such dividends shall not
be taxed in Belgium if the beneficial owner of the dividends is:

> a\) a company that is a resident of the United States that has owned
> directly shares representing at least 10 percent of the capital of the
> company paying the dividends for a 12-month period ending on the date
> the dividend is declared; or

b\) a pension fund that is a resident of the United States, provided
that such dividends are not derived from the carrying on of a business
by the pension fund or through an associated enterprise.

5\. Para­graphs 2, 3 and 4 shall not affect the taxation of the company
in respect of the profits out of which the dividends are paid.

6\. a) Subparagraph a) of paragraph 2 and subparagraph a) of paragraph 3
shall not apply in the case of dividends paid by a U.S. Regulated
Investment Company (RIC) or a U.S. Real Estate Investment Trust (REIT).
In the case of dividends paid by a RIC, subparagraph b) of paragraph 2
and subparagraph b) of paragraph 3 shall apply. In the case of dividends
paid by a REIT, subparagraph b) of paragraph 2 and subparagraph b) of
paragraph 3 shall apply only if:

> i\) the beneficial owner of the dividends is an individual or a
> pension fund, in either case holding an interest of not more than 10
> percent in the REIT;
>
> ii\) the dividends are paid with respect to a class of stock that is
> publicly traded and the beneficial owner of the dividends is a person
> holding an interest of not more than 5 percent of any class of the
> REIT's stock; or
>
> iii\) the beneficial owner of the dividends is a person holding an
> interest of not more than 10 percent in the REIT and the REIT is
> diversified.
>
> b\) For purposes of this paragraph, a REIT shall be \"diversified\" if
> the value of no single interest in real property exceeds 10 percent of
> its total interests in real property. For the purposes of this rule,
> foreclosure property shall not be considered an interest in real
> property. Where a REIT holds an interest in a partnership, it shall be
> treated as owning directly a proportion of the partnership\'s
> interests in real property corresponding to its interest in the
> partnership.

7\. For purposes of this Article, the term \"dividends\" means income
from shares or other rights, not being debt‑claims, participating in
profits, as well as income that is subjected to the same taxation
treatment as income from shares under the laws of the State of which the
­payer is a resident.

8\. The provisions of paragraphs 1 through 6 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
payer­ is a resident, through a permanent establishment situated therein,
and the holding in respect of which the dividends are paid is
effectively connected with such permanent establishment. In such case
the provi­sions of Article 7 (Business Profits) shall apply.

9\. A Contracting State may not impose any tax on dividends paid by a
resident of the other State, except insofar as the dividends are paid to
a resident of the first-mentioned State or the dividends are
attributable to a permanent establishment situated in the
first-mentioned State, nor may it impose tax on a corporation\'s
undistributed profits, except as provided in paragraph 10, even if the
dividends paid or the undistributed profits consist wholly or partly of
profits or income arising in that State.

10\. a) A company that is a resident of one of the States and that has a
permanent establishment in the other State or that is subject to tax in
the other State on a net basis on its income that may be taxed in the
other State under Article 6 (Income from Real Property) or under
paragraph 1 of Article 13 (Gains) may be subject in that other State to
a tax in addi­tion to the tax allowable under the other provisions of
this Convention.

> b\) Such tax, however, may be imposed on only the portion of the
> business profits of the company attributable to the permanent
> establishment and the portion of the income referred to in the
> preceding sentence that is subject to tax under Article 6 or under
> paragraph 1 of Article 13 that, in the case of the United States,
> represent the dividend equiva­lent amount of such profits or income
> and, in the case of Belgium, is an amount that is analogous to the
> dividend equivalent amount.

11\. The tax referred to in subparagraphs a) and b) of paragraph 10
shall not be imposed at a rate exceeding the rate specified in
subparagraph a) of paragraph 2. In any case, it shall not be imposed on
a company that:

a\) satisfies the conditions of clause i) or ii) of subparagraph c) of

paragraph 2 of Article 21 (Limitation on Benefits);

b\) satisfies the conditions of clauses i) and ii) of subparagraph e) of

paragraph 2 of Article 21, provided that the company satisfies the
conditions

described in paragraph 4 of that Article with respect to an item of
income, profit, or gain described in paragraph 10;

c\) is entitled under paragraph 3 of Article 21 to benefits with respect
to

an item of income, profit, or gain described in paragraph 10; or

d\) has received a determination pursuant to paragraph 7 of Article 21
with respect to this paragraph.

12\. a) Notwithstanding Article 29 (Termination):

> i\) paragraph 3 of this Article shall terminate on, and shall cease to
> be effective for amounts paid or credited on or after, January 1 of
> the 6th year following the year in which the Convention enters into
> force, unless, by June 30 of the 5th year following entry into force,
> the United States Secretary of the Treasury, on the basis of a report
> of the Commissioner of Internal Revenue, certifies to the Senate of
> the United States that Belgium has satisfactorily complied with its
> obligations under Article 25 (Exchange of Information and
> Administrative Assistance); and
>
> ii\) the United States may terminate paragraph 3 of this Article by
> giving written notice of termination to Belgium, through the
> diplomatic channel, on or before June 30 in any year. In such case,
> paragraph 3 hereof shall cease to be effective for amounts paid or
> credited on or after January 1 of the year next following that in
> which such notice is given. The United States will not give such
> notice of termination unless it has determined that Belgium\'s actions
> with respect to Articles 24 (Mutual Agreement Procedure) and 25 have
> materially altered the balance of benefits of the Convention.
>
> b\) The competent authorities shall consult at least annually
> regarding any issues that arise with respect to the functioning of
> Articles 24 and 25 that otherwise might trigger a termination under
> subparagraph a).

**Article 11**

### INTEREST

1\. Interest arising in a Contracting State and beneficially owned by a
resident of the other Contracting State shall be taxable only in that
other State.

2\. Notwithstanding the provisions of paragraph 1:

> a\) interest arising in the United States that is contingent interest
> of a type that does not qualify as portfolio interest under United
> States law may be taxed by the United States but, if the beneficial
> owner of the interest is a resident of Belgium, the interest may be
> taxed at a rate not exceeding 15 percent of the gross amount of the
> interest;
>
> b\) interest arising in Belgium that is determined with reference to
> receipts, sales, income, profits or other cash flow of the debtor or a
> related person, to any change in the value of any property of the
> debtor or a related person or to any dividend, partnership
> distribution or similar payment made by the debtor to a related person
> may be taxed in Belgium, and according to the laws of Belgium, but if
> the beneficial owner is a resi­dent of the United States, the interest
> may be taxed at a rate not exceeding 15 percent of the gross amount of
> the interest; and
>
> c\) interest that is an excess inclusion with respect to a residual
> inter­est in a real estate mortgage invest­ment conduit may be taxed by
> each State in accordance with its domestic law.

3\. The term \"interest\" as used in this Article means income from
debt‑claims of 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 or prizes attaching to such
securities, bonds or debentures, and all other income that is subjected
to the same taxation treatment as income from money lent by the taxation
law of the Contracting State in which the income arises. Income dealt
with in Article 10 (Dividends) and penalty charges for late payment
shall not be regarded as interest for the purposes of this Convention.

4\. The provisions of paragraph 1 shall not apply if the beneficial
owner of the interest, being a resident of a Con­tracting State, carries
on business in the other Contracting State, in which the interest
arises, through a permanent estab­lishment situat­ed therein, and the
debt-claim in respect of which the interest is paid is effectively
connected with such permanent establishment. In such case the provi­sions
of Article 7 (Busi­ness Profits) shall apply.

5\. Interest shall be deemed to arise in a Contracting State when the
payer is a resident of that State. Where, however, the person paying the
interest, whether he is a resident of a Contracting State or not, has in
a Contracting State a permanent establishment in connection with which
the indebtedness on 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 State in which the permanent
establishment is situated.

6\. Where, by reason of a special relationship between the payer and the
beneficial owner or between both of them and some other person, the
amount of the interest, 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 beneficial owner in the absence of such relation­ship, the
provisions of this Article shall apply only to the last‑mentioned
amount. In such case the excess part of the payments shall remain
taxable according to the laws of each Contracting State, due regard
being had to the other provisions of this Convention.

**Article 12**

**ROYALTIES**

1\. Royalties arising in a Contracting State and beneficial­ly owned by a
resident of the other Contracting State shall be taxable only in that
other State.

2\. The term \"royalties\" as used in this Article means payments of any
kind received as a consideration for the use of, or the right to use,
any copyright of literary, artistic, or scientific work (including
cinematographic films and software), any patent, trade mark, design or
model, plan, secret formula or process, or for information concerning
industrial, commercial or scientific experience.

3\. The provisions of paragraph 1 shall not apply if the beneficial
owner of the royalties, being a resident of a Con­tract­ing State, carries
on business in the other Contracting State through a perma­nent
estab­lishment situated therein and the right or property in respect of
which the royalties are paid is effectively connected with such
permanent establish­ment. In such case the provi­sions of Article 7
(Business Profits) shall apply.

4\. Where, by reason of a special relationship between the payer and the
beneficial owner or between both of them and some other person, the
amount of the royalties, 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 beneficial owner in the absence of such
relationship, the provi­sions of this Article shall apply only to the
last‑mentioned amount. In such case the excess part of the payments
shall remain taxable according to the laws of each Contracting State,
due regard being had to the other provisions of this Convention.

**Article 13**

**GAINS**

1\. Gains derived by a resident of a Contracting State that are
attributable to the alienation of real property situated in the other
Contracting State may be taxed in that other State.

2\. For the purposes of this Article the term \"real property situated
in the other Contracting State\" shall include:

> a\) real property referred to in Article 6 (Income from Real
> Property); and
>
> b\) where that other State is the United States, a United States real
> property interest.

3\. Gains from the alienation of movable proper­ty forming part of the
business property of a permanent establishment that an enterprise of a
Contracting State has in the other Con­tracting State, including such
gains from the alienation of such a permanent establish­ment (alone or
with the whole enterprise), may be taxed in that other State.

4\. Gains derived by an enterprise of a Contracting State from the
alienation of ships or aircraft operated in international traffic or
personal property pertaining to the operation of such ships or aircraft
shall be taxable only in that State.

5\. Gains derived by an enterprise of a Contracting State from the
alienation of containers (including trailers and related equipment for
the transport of containers) used for the transport of goods or
merchandise shall be taxable only in that State, unless those containers
or trailers and related equipment are used for transport solely between
places within the other Contracting State.

6\. Gains from the alienation of any property other than property
referred to in paragraphs 1

through 5 shall be taxable only in the Contracting State of which the
alienator is a resi­dent.

**Article 14**

**INCOME FROM EMPLOYMENT**

1\. Subject to the provisions of Articles 15 (Directors\' Fees), 17
(Pensions, Social Security, Annuities, Alimony, and Child Support), 18
(Government Service) and 19 (Students, Trainees, Teachers and
Researchers), salaries, wages, and other similar remuneration derived by
a resident of a Contracting State in respect of 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.

2\. Notwithstanding the provisions of paragraph 1, remunera­tion derived
by a resident of a Contracting State in respect of an employment
exercised in the other Contracting State shall be taxable only in the
first‑mentioned State if:

> a\) the recipient is present in the other State for a period or
> periods not exceeding in the aggregate 183 days in any twelve month
> period commencing or ending in the taxable year concerned; and
>
> b\) the remuneration is paid by, or on behalf of, an employer who is
> not a resident of the other State; and
>
> c\) the remuneration is not borne by a permanent estab­lishment which
> the employer has in the other State.

3\. Notwithstanding the preceding provisions of this Article,
remuneration described in paragraph 1 that is derived by a resi­dent of a
Con­tracting State in respect of an employment as a member of the regular
complement of a ship or aircraft operated in internation­al traffic shall
be taxable only in that State.

**Article 15**

**DIRECTORS\' FEES**

Directors\' fees and other compensation derived by a resident of a
Contracting State for services rendered in the other Con­tracting State
in his capacity as a member of the board of directors of a company that
is a resident of the other Contract­ing State may be taxed in that other
Contracting State.

**Article 16**

**ENTERTAINERS AND SPORTSMEN**

1\. Income derived by a resident of a Contracting State as an
entertainer, such as a theater, motion picture, radio, or television
artiste, or a musician, or as a sportsman, from his personal activities
as such exercised in the other Contracting State, which income would be
exempt from tax in that other Contracting State under the provisions of
Articles 7 (Business Profits) and 14 (Income from Employment) may be
taxed in that other State, except where the amount of the gross receipts
derived by such entertainer or sportsman, includ­ing expenses reimbursed
to him or borne on his behalf, from such activities does not exceed
twenty thousand United States dollars (\$20,000) or its equivalent in
euro for the taxable year of the payment.

2\. Where income in respect of personal activities exercised by an
entertainer or a sportsman in his capacity as such accrues not to the
entertainer or sportsman himself but to another person, that income may,
notwithstanding the provisions of Articles 7 and 14, be taxed in the
Contracting State in which the activities of the entertainer or
sportsman are exercised, but only in cases in which the contract
pursuant to which the personal activities are performed

> a\) designates (by name or description) the entertainer or sportsman;
> or
>
> b\) allows the other party to the contract (or some third person other
> than the entertainer, sportsman or the first-mentioned other person)
> to designate the individual who is to perform the personal activities.

**Article 17**

**PENSIONS, SOCIAL SECURITY, ANNUITIES,**

**ALIMONY, AND CHILD SUPPORT**

1\. Subject to paragraph 2 of Article 18 (Government Service),

a\) pensions and other similar remuneration beneficially owned by a
resident of a Contracting State shall be taxable only in that State;

b\) notwithstanding subparagraph a), the amount of any such pension or
remuneration arising in a Contracting State that, when received, would
be exempt from taxation in that State if the beneficial owner were a
resident thereof shall be exempt from taxation in the Contracting State
of which the beneficial owner is a resident.

2\. Notwithstanding the provisions of paragraph 1, pay­ments made by a
Contracting State under provisions of the social security or similar
legislation of that State to a resi­dent of the other Contracting State
or to a citizen of the United States shall be taxable only in the
first­-mentio­ned State.

3\. Annuities derived and beneficially owned by an individual resident
of a Contracting State shall be taxable only in that State. The term
\"annuities\" as used in this paragraph means a stated sum paid
periodically at stated times during a specified number of years, or for
life, under an obligation to make the payments in return for adequate
and full consideration (other than services rendered).

4\. Alimony paid by a resident of a Contracting State to a resident of
the other Contracting State shall be taxable only in that other State.
The term \"alimony\" as used in this paragraph means periodic payments
made pursuant to a w­ritten separation agreement or a decree of divorce,
separate main­tenance, or compulsory support, which payments are taxable
to the recipient under the laws of the State of which he is a resident.

5\. Periodic payments, not dealt with in paragraph 4, for the support of
a child made pursuant to a written separa­tion agreement or a decree of
divorce, separate maintenance, or compulsory support, paid by a resident
of a Contracting State to a resident of the other Contracting State,
shall be taxable only in the first-mentioned State.

6\. Income earned by a pension fund that is a resident of a Contracting
State may be taxed as income of an individual who is a resident of the
other Contracting State only when, and, subject to the provisions of
paragraph 1 of this Article, to the extent that, it is paid to, or for
the benefit of, that individual from the pension fund (and not
transferred to another pension fund that is a resident of the
first-mentioned Contracting State).

7\. Where an individual who is a member or beneficiary of, or
participant in, a pension fund that is a resident of one of the
Contracting States (or in a similar fund that is a resident of a
comparable third State) exercises an employment or self-employment in
the other Contracting State:

a\) contributions paid by or on behalf of that individual under a
pension plan during the period that he exercises an employment or
self-employment in the other Contracting State shall be deductible (or
excludible) in computing his taxable income in that other Contracting
State; and

b\) any benefits accrued under the pension plan, or contributions made
under the pension plan by or on behalf of the individual's employer,
during that period shall not be treated as part of the employee's
taxable income and any such contributions shall be allowed as a
deduction in computing the taxable income of his employer in that other
Contracting State.

The relief available under this paragraph shall not exceed the relief
that would be allowed by the other Contracting State to residents of
that Contracting State for contributions to, or benefits accrued under,
a pension plan established in that Contracting State, in the case of the
United States, or recognized for tax purposes in that Contracting State,
in the case of Belgium.

8\. The provisions of paragraph 7 of this Article shall not apply
unless:

a\) contributions by or on behalf of the individual, or by or on behalf
of the individual's employer, under the pension plan (or under another
similar pension plan for which the first-mentioned pension plan was
substituted) were made before the individual began to exercise an
employment or self-employment in the other Contracting State;

b\) the individual has performed personal services in the other
Contracting State for a cumulative period not exceeding ten calendar
years; and

c\) the competent authority of the other Contracting State has agreed
that the pension plan generally corresponds to a pension plan recognized
for tax purposes in that other Contracting State.

9\. a) Where a citizen of the United States who is a resident of Belgium
exercises an employment in Belgium the income from which is taxable in
Belgium, the contribution is borne by an employer who is a resident of
Belgium or by a permanent establishment situated in Belgium, and the
individual is a member or beneficiary of, or participant in, a pension
fund that is a resident of Belgium (or in a similar fund that is a
resident of a comparable third State),

i\) contributions paid by or on behalf of that individual under a
pension plan

during the period that he exercises the employment in Belgium, and that
are

> attributable to the employment, shall be deductible (or excludible) in
> computing his taxable income in the United States; and

ii\) any benefits accrued under the pension plan, or contributions made
under

the pension plan by or on behalf of the individual's employer, during
that period,

and that are attributable to the employment, shall not be treated as
part of the

employee's taxable income in computing his taxable income in the United

States.

> b\) The relief available under this paragraph shall not exceed the
> lesser of:
>
> i\) the relief that would be allowed by the United States to its
> residents for contributions to, or benefits accrued under, a generally
> corresponding pension plan recognized for tax purposes in the United
> States; and
>
> ii\) the amount of the contributions or benefits that qualify for tax
> relief in Belgium.
>
> c\) For purposes of determining an individual's eligibility to
> participate in and receive tax benefits with respect to a pension plan
> established in the United States, contributions made to, or benefits
> accrued under, a pension plan recognized for tax purposes in Belgium
> shall be treated as contributions or benefits under a generally
> corresponding pension plan established in the United States to the
> extent relief is available to the individual under this paragraph.

d\) This paragraph shall not apply unless the competent authority of the
United States has agreed that the pension plan generally corresponds to
a pension plan recognized for tax purposes in the United States.

10\. a) For purposes of paragraphs 7 and 9, a similar fund that is a
resident of a State other than a Contracting State will be considered to
be a resident of a comparable third State only if that third State:

> i\) is a member state of the European Union or any other European
> Economic Area state or any party to the North American Free Trade
> Agreement or Switzerland;
>
> ii\) provides, under a tax treaty or otherwise, comparable favorable
> treatment for contributions to a pension fund that is a resident of
> the Contracting State that is providing benefits under paragraph 7 or
> 9; and

iii\) has an information exchange provision in a tax treaty or other
arrangement with the Contracting State that is providing benefits under
paragraph 7 or 9 that is satisfactory to that Contracting State;

> b\) a pension plan is recognized for tax purposes in a Contracting
> State if
>
> contributions to the plan would qualify for tax relief in that
> Contracting State.

**Article 18**

**GOVERNMENT SERVICE**

1\. Notwithstanding the provisions of Articles 14 (Income from
Employment), 15 (Directors' Fees), 16 (Entertainers and Sportsmen) and
19 (Students, Trainees, Teachers and Researchers):

> a\) salaries, wages and other similar remuneration, other than a
> pension, paid to an individual in re­spect of services rendered to a
> Contracting State or a political subdivision or local authority
> thereof shall be taxable only in that State;
>
> b\) such remuneration, however, shall be taxable only in the other
> Contracting State if the services are rendered in that State and the
> individual is a resident of that State who:
>
> i\) is a national of that State; or
>
> ii\) did not become a resident of that State solely for the purpose of
> rendering the services.

2\. a) Notwithstanding the provisions of paragraph 1, any pension and
other similar remuneration paid by, or out of funds created by, a
Con­tracting State or a political subdivision or a local author­ity
thereof to an individual in respect of services rendered to that State
or subdivision or authority (other than a payment to which paragraph 2
of Article 17 (Pensions, Social Security, Annuities, Alimony, and Child
Support) applies) shall be taxable only in that State;

> b\) such pensions and other similar remuneration, however, shall be
> taxable only in the other Contracting State if the individual is a
> resident of, and a national of, that State.

3\. The provisions of Articles 14, 15, 16 and 17 shall apply to
salaries, wages, pensions, and other similar remuneration, in respect of
services rendered in connection with a business carried on by a
Contracting State or a political subdivision or a local authority
thereof.

**Article 19**

**STUDENTS, TRAINEES, TEACHERS AND RESEARCHERS**

1\. a) Payments, other than compensation for personal services, received
by a student or business trainee who is, or was immediately before
visiting a Contracting State, a resident of the other Contracting State,
and who is present in the first-mentioned State for the purpose of his
full-time education or for his full-time training, shall not be taxed in
that State, provid­ed that such payments arise outside that State, and
are for the purpose of his maintenance, education or training. The
exemp­tion from tax provided by this paragraph shall apply to a business
trainee only for a period of time not exceeding two years from the date
the business trainee first arrives in the first-mentioned Contracting
State for the purpose of training.

> b\) A student or business trainee within the meaning of subparagraph
> a) shall be exempt from tax in the Contracting State in which the
> individual is temporarily present with respect to income from personal
> services in an aggregate amount equal to \$9,000 or its equivalent in
> euro annually. The competent authorities shall, every five years,
> adjust the amount provided in this subparagraph to the extent
> necessary to take into account changes in the U.S. personal exemption
> and standard deduction and the Belgian basic allowance (quotité
> exemptée/belastingvrije som).

c\) For purposes of this paragraph, a business trainee is an individual:

i\) who is temporarily present in a Contracting State for the purpose of
securing training required to qualify the individual to practice a
profession or professional specialty; or

ii\) who is temporarily present in a Contracting State as an employee
of, or under contract with, a resident of the other Contracting State,
for the primary purpose of acquiring technical, professional, or
business experience from a person other than that resident of the other
Contracting State (or a person related to such resident of the other
Contracting State).

2\. An individual who is a resident of a Contracting State at the
beginning of his visit to the other Contracting State and who is
temporarily present in the other Contracting State for the purpose of
teaching or carrying on research at a school, college, university or
other educational or research institution shall be exempt from tax in
the other Contracting State for a period not exceeding two years from
the date of the individual\'s arrival in that other State on the
remuneration received in consideration of teaching or carrying on
research. This paragraph 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 20**

**OTHER INCOME**

1\. Items of income beneficially owned by a resident of a Con­tracting
State, wherever arising, not dealt with in the foregoing Articles of
this Convention shall be taxable only in that State.

2\. The provisions of paragraph 1 shall not apply to income, other than
income from real property as defined in paragraph 2 of Article 6 (Income
from Real Property), if the bene­ficial owner of the income, being a
resident of a Con­tracting State, carries on business in the other
Contracting State through a permanent establishment situated therein and
the income is attributable to such permanent establishment. In such case
the provisions of Article 7 (Business Profits) shall apply.

**Article 21**

**LIMITATION ON BENEFITS**

1\. A resident of a Contracting State shall be entitled to benefits
otherwise accorded to residents of a Contracting State by this
Convention only to the extent provided in this Article.

2\. A resident of a Contracting State shall be entitled to all the
benefits of this Convention if the resident is:

a\) an individual;

b\) a Contracting State or any political subdivision or local authority
thereof;

c\) a company, if:

> i\) its principal class of shares (and any disproportionate class of
> shares) is regularly traded on one or more recognized stock exchanges,
> and either:
>
> A\) its principal class of shares is primarily traded on a recognized
> stock exchange located in the Contracting State of which the company
> is a resident (or, in the case of a company resident in Belgium, on a
> recognized stock exchange located within the European Union or in any
> other European Economic Area state, or, in the case of a company
> resident in the United States, on a recognized stock exchange located
> in another state that is a party to the North American Free Trade
> Agreement); or
>
> B\) the company's primary place of management and control is in the
> Contracting State of which it is a resident; or
>
> ii\) at least 50 percent of the aggregate voting power and value of
> the shares (and at least 50 percent of any disproportionate class of
> shares) in the company are owned directly or indirectly by five or
> fewer companies entitled to benefits under clause i) of this
> subparagraph, provided that, in the case of indirect ownership, each
> intermediate owner is a resident of either Contracting State;
>
> d\) a person described in paragraph 3 of Article 4 (Resident),
> provided that, in the case of a person described in subparagraph a) of
> that paragraph, either:
>
> i\) more than 50 percent of the person's beneficiaries, members or
> participants are individuals resident in either Contracting State; or
>
> ii\) the organization sponsoring such person is entitled to the
> benefits of this Convention pursuant to this Article; or

e\) a person other than an individual, if:

> i\) on at least half the days of the taxable year at least 50 percent
> of each class of shares or other beneficial interests in the person is
> owned, directly or indirectly, by residents of the Contracting State
> of which that person is a resident that are entitled to the benefits
> of this Convention under subparagraph a), subparagraph b), clause i)
> of subparagraph c), or subparagraph d) of this paragraph; and
>
> ii\) less than 50 percent of the person\'s gross income for the
> taxable year, as determined in the person\'s State of residence, is
> paid or accrued, directly or indirectly, to persons who are not
> residents of either Contracting State entitled to the benefits of this
> Convention under subparagraph a), subparagraph b), clause i) of
> subparagraph c), or subparagraph d) of this paragraph in the form of
> payments that are deductible for purposes of the taxes covered by this
> Convention in the person\'s State of residence (but not including
> arm\'s length payments in the ordinary course of business for services
> or tangible property and payments in respect of financial obligations
> to a bank that is not related to the payor).

3\. A company that is a resident of a Contracting State shall also be
entitled to the benefits of the Convention if:

> a\) at least 95 percent of the aggregate voting power and value of its
> shares (and at least 50 percent of any disproportionate class of
> shares) is owned, directly or indirectly, by seven or fewer persons
> that are equivalent beneficiaries; and
>
> b\) less than 50 percent of the company's gross income, as determined
> in the company\'s State of residence, for the taxable year is paid or
> accrued, directly or indirectly, to persons who are not equivalent
> beneficiaries, in the form of payments (but not including arm\'s
> length payments in the ordinary course of business for services or
> tangible property and payments in respect of financial obligations to
> a bank that is not related to the payor), that are deductible for the
> purposes of the taxes covered by this Convention in the company\'s
> State of residence.

4\. a) A resident of a Contracting State will be entitled to benefits of
the Convention with respect to an item of income derived from the other
Contracting State, regardless of whether the resident is entitled to
benefits under paragraph 2 or 3, if the resident is engaged in the
active conduct of a trade or business in the first-mentioned State
(other than the business of making or managing investments for the
resident's own account, unless these activities are banking, insurance,
or securities activities carried on by a bank, insurance company or
registered securities dealer), and the income derived from the other
Contracting State is derived in connection with, or is incidental to,
that trade or business.

> b\) If a resident of a Contracting State or any of its associated
> enterprises carries on a trade or business activity in the other
> Contracting State which gives rise to an item of income, subparagraph
> a) of this paragraph shall apply to such item only if the trade or
> business activity in the first-mentioned State is substantial in
> relation to the trade or business activity in the other State. Whether
> a trade or business activity is substantial for purposes of this
> paragraph will be determined based on all the facts and circumstances.
>
> c\) In determining whether a person is \"engaged in the active conduct
> of a trade or business\" in a Contracting State under subparagraph a)
> of this paragraph, activities conducted by persons connected to such
> person shall be deemed to be conducted by such person. A person shall
> be connected to another if one possesses at least 50 percent of the
> beneficial interest in the other (or, in the case of a company, at
> least 50 percent of the aggregate voting power and at least 50 percent
> of the aggregate value of the shares in the company or of the
> beneficial equity interest in the company) or another person
> possesses, directly or indirectly, at least 50 percent of the
> beneficial interest (or, in the case of a company, at least 50 percent
> of the aggregate voting power and at least 50 percent of the aggregate
> value of the shares in the company or of the beneficial equity
> interest in the company) in each person. In any case, a person shall
> be considered to be connected to another if, based on all the relevant
> facts and circumstances, one has control of the other or both are
> under the control of the same person or persons.

5\. A person that is a resident of a Contracting State and functions as
a headquarters company for a multinational corporate group shall also be
entitled to all the benefits of this Convention otherwise accorded to
residents of that Contracting State if that person satisfies any other
specified conditions for the obtaining of such benefits. A person shall
be considered a headquarters company for this purpose only if:

a\) it provides a substantial portion of the overall supervision and
administration of the group, which may include, but cannot be
principally, group financing;

b\) the corporate group consists of companies which are resident in, and
engaged in an active business in, at least five countries, and the
business activities carried on in each of the five countries (or five
groupings of countries) generate at least 10 percent of the gross income
of the group;

c\) the business activities carried on in any one country other than the
State of residence of the headquarters company generate less than 50
percent of the gross income of the group;

d\) no more than 25 percent of its gross income is derived from the
other State;

e\) it has, and exercises, independent discretionary authority to carry
out the functions referred to in subparagraph a);

f\) it is subject to the same income taxation rules in its country of
residence as persons described in paragraph 4; and

g\) the income derived in the other State either is derived in
connection with, or is incidental to, the active business referred to in
subparagraph b).

If the gross income requirements of subparagraphs b), c), or d) of this
paragraph are not fulfilled, they will be deemed to be fulfilled if the
required ratios are met when averaging the gross income of the preceding
four years.

6\. Notwithstanding the preceding provisions of this Article, where an
enterprise of Belgium derives interest, or royalties from the United
States, and the income consisting of such interest, or royalties is
exempt from taxation in Belgium because it is attributable to a
permanent establishment which that enterprise has in a third state, the
tax benefits that would otherwise apply under the other provisions of
the Convention will not apply to such income if the tax that is actually
paid with respect to such income in the third state is less than 60
percent of the tax that would have been payable in Belgium if the income
were earned in Belgium by the enterprise and were not attributable to
the permanent establishment in the third state. Any interest or
royalties to which the provisions of this paragraph apply may be taxed
in the United States at a rate that shall not exceed 15 percent of the
gross amount thereof. The provisions of this paragraph shall not apply
if:

> a\) in the case of interest, as defined in Article 11 (Interest), the
> income from the United States is derived in connection with, or is
> incidental to, the active conduct of a trade or business carried on by
> the permanent establishment in the third state (other than the
> business of making, managing, or simply holding investments for the
> enterprise's own account, unless these activities are banking, or
> securities activities carried on by a bank, or registered securities
> dealer); or
>
> b\) in the case of royalties, as defined in Article 12 (Royalties),
> the royalties are received as compensation for the use of, or the
> right to use, intangible property produced or developed by the
> permanent establishment itself.

7\. A resident of a Contracting State that is not entitled to benefits
pursuant to the preceding paragraphs of this Article shall,
nevertheless, be granted benefits of the Convention if the competent
authority of the other Contracting State determines that the
establishment, acquisition, or maintenance of such person and the
conduct of its operations did not have as one of its principal purposes
the obtaining of benefits under the Convention. The competent authority
of the other Contracting State shall consult with the competent
authority of the first-mentioned State before denying the benefits of
the Convention under this paragraph.

8\. For the purposes of this Article:

> a\) the term \"principal class of shares\" means the ordinary or
> common shares of the company, provided that such class of shares
> represents the majority of the voting power and value of the company.
> If no single class of ordinary or common shares represents the
> majority of the aggregate voting power and value of the company, the
> \"principal class of shares\" are those classes that in the aggregate
> represent a majority of the aggregate voting power and value of the
> company;
>
> b\) the term \"disproportionate class of shares\" means any class of
> shares of a company resident in a Contracting State that entitles the
> shareholder to disproportionately higher participation, through
> dividends, redemption payments, or otherwise, in the earnings
> generated in the other Contracting State by particular assets or
> activities of the company when compared to its participation in
> overall assets or activities of such company;

c\) the term \"shares\" shall include depository receipts thereof;

d\) the term \"recognized stock exchange\" means:

> i\) the NASDAQ System owned by the National Association of Securities
> Dealers, Inc. and any stock exchange registered with the U.S.
> Securities and Exchange Commission as a national securities exchange
> under the U.S. Securities Exchange Act of 1934;
>
> ii\) the Brussels Stock Exchange;
>
> iii\) the Irish Stock Exchange and the stock exchanges of Amsterdam,
> Frankfurt, Hamburg, Lisbon, London, Madrid, Milan, Paris, Toronto and
> Zurich; and
>
> iv\) any other stock exchanges agreed upon by the competent
> authorities of the Contracting States;
>
> e\) a class of shares is considered to be regularly traded on one or
> more recognized stock exchanges in a taxable year if the aggregate
> number of shares of that class traded on such stock exchange or
> exchanges during the preceding taxable year is at least 6 percent of
> the average number of shares outstanding in that class during that
> preceding taxable year;
>
> f\) a company's primary place of management and control will be in the
> Contracting State of which it is a resident only if executive officers
> and senior management employees exercise day-to-day responsibility for
> more of the strategic, financial, and operational policy decision
> making for the company (including its direct and indirect
> subsidiaries) in that State than in any other state, and the staffs
> conduct more of the day-to-day activities necessary for preparing and
> making those decisions in that State than in any other state;
>
> g\) the term \"equivalent beneficiary\" means a resident of a member
> state of the European Union or of any other European Economic Area
> state or of a party to the North American Free Trade Agreement, or of
> Switzerland, but only if that resident:
>
> i\) A) would be entitled to all the benefits of a comprehensive tax
> convention between any member state of the European Union or any other
> European Economic Area state or any party to the North American Free
> Trade Agreement, or Switzerland, and the State from which the benefits
> of this Convention are claimed under provisions analogous to
> subparagraph a), subparagraph b), clause i) of subparagraph c) or
> subparagraph d) of paragraph 2, provided that if such convention does
> not contain a comprehensive limitation on benefits provision, the
> resident would be entitled to the benefits of this Convention by
> reason of subparagraph a), subparagraph b), clause i) of subparagraph
> c), or subparagraph d) of paragraph 2 if such person were a resident
> of one of the Contracting States under Article 4 (Resident); and
>
> B\) with respect to insurance premiums and to income referred to in
> Article 10 (Dividends), 11 (Interest), or 12 (Royalties), would be
> entitled under such convention to a rate of tax with respect to the
> item of income for which benefits are being claimed under this
> Convention that is at least as low as the rate applicable under this
> Convention; or
>
> ii\) is a resident of a Contracting State that is entitled to the
> benefits of this Convention by reason of subparagraph a), subparagraph
> b), clause i) of subparagraph c), or subparagraph d) of paragraph 2;
>
> h\) with respect to dividends, interest, or royalties arising in
> Belgium and beneficially owned by a company that is a resident of the
> United States, a company that is a resident of a member state of the
> European Union will be treated as satisfying the requirements of
> subparagraph g) i) B) for purposes of determining whether such United
> States resident is entitled to the benefits of the Convention under
> this paragraph if a payment of dividends, interest, or royalties
> arising in Belgium and paid directly to such resident of a member
> state of the European Union would have been exempt from tax pursuant
> to any directive of the European Union, notwithstanding that the tax
> convention between Belgium and that other member state of the European
> Union would provide for a higher rate of tax with respect to such
> payment than the rate of tax applicable to such United States company
> under Article 10, 11, or 12.

**Article 22**

**RELIEF FROM DOUBLE TAXATION**

1\. In the case of Belgium, double taxation will be relieved as follows:

> a\) Where a resident of Belgium derives income, other than dividends,
> interest and royalties, which is taxed in the United States in
> accordance with the provisions of this Convention, 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\) The exemption provided by subparagraph a) shall also be granted
> with respect to income treated as dividends under Belgian law, which
> is derived by a resident of Belgium from a participation in an entity
> that derives its status as such from the laws of the United States or
> any state thereof, where that entity has not been taxed as a
> corporation by the United States, provided that the resident of
> Belgium has been taxed by the United States, proportionally to his
> participation in such entity, on the income out of which the income
> treated as dividends under Belgian law is paid. The exempted income is
> the income received after deduction of the costs incurred in Belgium
> or elsewhere in relation to the management of the participation in the
> entity.
>
> c\) Dividends derived by a company which is a resident of Belgium from
> a company which is a resident of the United States, shall be exempt
> from the corporate income tax in Belgium to the extent that exemption
> would have been accorded if the two companies had been residents of
> Belgium.
>
> d\) Where dividends described in subparagraph c) are not exempted from
> the corporate income tax in Belgium, Belgium shall deduct from the
> corporate income tax relating to these dividends, the United States
> tax levied on these dividends in accordance with Article 10
> (Dividends). This deduction shall not exceed that part of the
> corporate income tax which is proportionally relating to these
> dividends.
>
> e\) Subject to the provisions of Belgian law regarding the deduction
> from Belgian tax of taxes paid abroad, where a resident of Belgium
> derives items of his aggregate income for Belgian tax purposes which
> are interest or royalties, the United States tax levied on that income
> shall be allowed as a credit against Belgian tax relating to such
> income.
>
> f\) Where, in accordance with Belgian law, losses incurred by an
> enterprise carried on by a resident of Belgium in a permanent
> establishment situated in the United States, have been effectively
> deducted from the profits of that enterprise for its taxation in
> Belgium, the exemption provided for 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
> exempted from tax in the United States by reason of compensation for
> the said losses.

2\. In accordance with the provisions and subject to the limitations of
the law of the United States (as it may be amended from time to time
without changing the general principle hereof), the United States shall
allow to a resident or citizen of the United States as a credit against
the United States tax on income applicable to residents and citizens:

> a\) the income tax paid or accrued to Belgium by or on behalf of such
> resident or citizen; and
>
> b\) in the case of a United States company owning at least 10 percent
> of the voting stock of a company that is a resident of Belgium and
> from which the United States company receives dividends, the income
> tax paid or accrued to Belgium by or on behalf of the payer with
> respect to the profits out of which the dividends are paid.

For the purposes of this paragraph, the taxes referred to in paragraphs
3 a) and 4 of Article 2 (Taxes Covered) shall be considered income
taxes.

3\. For the purposes of applying paragraph 2 of this Article, an item of
gross income, as determined under the laws of the United States, derived
by a resident of the United States that, under this Convention, may be
taxed in Belgium shall be deemed to be income from sources in Belgium.

4\. Where a resident of Belgium is also a citizen or a former citizen or
former long-term resident of the United States and is subject to United
States tax in accordance with paragraph 4 of Article 1 (General Scope),
the following rules shall apply:

> a\) taxation by the United States of the income of such persons shall
> not affect the taxation in Belgium of income from sources arising in
> third countries, as determined under the laws of Belgium, and received
> by a resident of Belgium;
>
> b\) in the case of income from sources within the United States,
> Belgium shall apply paragraph 1 as if the tax paid to the United
> States in respect of such income were the tax that would have been
> paid to the United States if the resident were not a citizen or a
> former citizen or a former long-term resident of the United States;
>
> c\) for purposes of applying paragraph 2 to compute United States tax
> on those items of income referred to in subparagraph b), the United
> States shall allow as a credit against United States tax the income
> tax paid to Belgium in accordance with subparagraph b); the credit so
> allowed shall not reduce the amount of the United States tax below the
> amount that is taken into account in applying subparagraph b); and
>
> d\) for the exclusive purpose of relieving double taxation in the
> United States under subparagraph c), items of income referred to in
> sub­paragraph b) shall be deemed to arise in Belgium to the extent
> necessary to avoid double taxa­tion of such income under subpara­graph
> c).

**Article 23**

**NON-DISCRIMINATION**

1\. Nationals of a Contracting State shall not be subjected in the other
Contracting State to any taxation or any requirement connected therewith
that is more burdensome than the taxation and connected requirements to
which nationals of that other State in the same circumstances, in
particular with respect to residence, are or may be subjected. This
provision shall also apply to persons who are not residents of one or
both of the Contract­ing States. However, for the purposes of United
States taxation, United States nationals who are subject to tax on a
worldwide basis are not in the same circumstances as nationals of
Belgium who are not residents of the United States.

2\. The taxation on a permanent establishment that an enterprise of a
Contracting State has in the other Contracting State shall not be less
favorably levied in that other State than the taxation levied on
enterprises of that other State carrying on the same activities.

3\. The provi­sions of paragraphs 1 and 2 shall not be construed as
obliging a Con­tract­ing State to grant to resi­dents of the other
Contracting State any personal allow­ances, reliefs, and reduc­tions for
taxation purpos­es on account of civil status or family responsi­bilities
that it grants to its own residents.

4\. Except where the provisions of paragraph 1 of Article 9 (Associated
Enterprises), paragraph 6 of Article 11 (Interest), or paragraph 4 of
Article 12 (Royalties) apply, interest, royal­ties, and other
disbursements paid by a resident of a Contracting State to a resident of
the other Contracting State shall, for the purpose of determining the
taxable profits of the first-men­tioned resident, be deductible under the
same conditions as if they had been paid to a resident of the
first‑mentioned State. Similarly, any debts of a resident of a
Contracting State to a resident of the other Contracting State shall,
for the purpose of determining the taxable capital of the
first-mentioned resi­dent, be deductible under the same conditions as if
they had been contracted to a resident of the first‑mentioned State.

5\. Enterprises of a Contracting State, 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 State to any taxation or any requirement connected
therewith that is more burden­some than the taxation and connected
requirements to which other similar enterprises of the first‑mentioned
State are or may be subjected.

6\. Nothing in this Article shall be construed as preventing either
Contracting State from imposing a tax as described in paragraph 10 of
Article 10 (Dividends).

7\. The provisions of this Article shall, notwithstanding the provisions
of Article 2 (Taxes Covered), apply to taxes of every kind and
description imposed by a Contracting State or a political subdivision or
local authority thereof.

**Article 24**

**MUTUAL AGREEMENT PROCEDURE**

1\. Where a person considers that the actions of one or both of the
Contracting States result or will result for such person in taxation not
in accordance with the provisions of this Convention, it may,
irrespective of the remedies provided by the domestic law of those
States, and the time limits prescribed in such laws for presenting
claims for refund, present its case to the competent authority of either
Contracting State. The case must be presented within three years from
the first notification of the action resulting in taxation not in
accordance with the provisions of the Convention.

2\. The competent authority shall endeavor, if the objection appears to
it to be justified and if it is not itself able to arrive at a
satisfactory solution, to resolve the case by mutual agreement with the
competent authority of the other Contracting State, with a view to the
avoidance of taxation which is not in accordance with the Convention.
Collection procedures shall be suspended during the period that any
mutual agreement proceeding is pending.

3\. The competent authorities of the Contracting States shall endeavor
to resolve by mutual agreement any difficulties or doubts arising as to
the interpre­tation or application of the Convention. In particular the
competent authorities of the Contracting States may agree:

> a\) to the same attribution of income, deductions, credits, or
> allowances of an enterprise of a Contracting State to its permanent
> establishment situated in the other Contract­ing State;
>
> b\) to the same attribution of income, deductions, credits, or
> allowances between permanent establishments of an enterprise where the
> permanent establishments are located in the Contracting States,
> whether or not the enterprise is an enterprise of a Contracting State;
>
> c\) to the same allocation of income, deductions, credits, or
> allowances between persons;
>
> d\) to the settlement of conflicting application of the Convention,
> including conflicts regarding:
>
> i\) the characterization of particular items of income;
>
> ii\) the characterization of persons;
>
> iii\) the application of source rules with respect to particular items
> of income;
>
> iv\) the same meaning of any term used in the Convention;
>
> e\) to advance pricing arrangements; and
>
> f\) to the application of the provisions of domestic law regarding
> penalties, fines, and interest in a manner consis­tent with the
> purposes of the Convention.

4\. To the extent necessary to facilitate the resolution of a case that
is the subject of a mutual agreement proceeding under the preceding
paragraphs, the tax authorities of each Contracting State shall have the
power to ask any person who may have relevant information for the
disclosure of such information and to conduct investigations and
hearings notwithstanding any time limits in their domestic tax laws that
would otherwise bar such requests for information. Any agreement reached
under this Article shall be implemented notwithstanding any time limits
or other procedural limitations in the domestic law of the Contracting
States.

5\. The competent authorities of the Contracting States may agree on
administrative measures necessary to carry out the provisions of the
Convention and particularly on the documentation to be furnished by a
resident of a Contracting State in order to support its claim for the
exemptions or reductions of tax provided for in the Convention.

6\. The competent authorities of the Contracting States may communicate
with each other directly, including through a joint commission, for the
purpose of reaching an agreement in the sense of the preceding
paragraphs.

7\. Where, pursuant to a mutual agreement procedure under this Article,
the competent authorities have endeavored but are unable to reach a
complete agreement in a case, the case shall be resolved through
arbitration conducted in the manner prescribed by, and subject to, the
requirements of paragraph 8 and any rules or procedures agreed upon by
the Contracting States, if:

> a\) tax returns have been filed with at least one of the Contracting
> States with respect to the taxable years at issue in the case;
>
> b\) the case is not a particular case that the competent authorities
> agree, before the date on which arbitration proceedings would
> otherwise have begun, is not suitable for determination by
> arbitration; and
>
> c\) all concerned persons agree according to the provisions of
> subparagraph d) of paragraph 8.

8\. For the purposes of paragraph 7 and this paragraph, the following
rules and definitions shall apply:

> a\) the term "concerned person" means the presenter of a case to a
> competent authority for consideration under this Article and all other
> persons, if any, whose tax liability to either Contracting State may
> be directly affected by a mutual agreement arising from that
> consideration;
>
> b\) the "commencement date" for a case is the earliest date on which
> the information necessary to undertake substantive consideration for a
> mutual agreement has been received by both competent authorities;

c\) arbitration proceedings in a case shall begin on the later of:

> i\) two years after the commencement date of that case, unless both
> competent authorities have previously agreed to a different date, and
>
> ii\) the earliest date upon which the agreement required by
> subparagraph d) has been received by both competent authorities;
>
> d\) the concerned person(s), and their authorized representatives or
> agents, must agree prior to the beginning of arbitration proceedings
> not to disclose to any other person any information received during
> the course of the arbitration proceeding from either Contracting State
> or the arbitration board, other than the determination of such board;
>
> e\) unless any concerned person does not accept the determination of
> an arbitration board, the determination shall constitute a resolution
> by mutual agreement under this Article and shall be binding on both
> Contracting States with respect to that case; and
>
> f\) for purposes of an arbitration proceeding under paragraph 7 and
> this paragraph, the members of the arbitration board and their staffs
> shall be considered \"persons or authorities\" to whom information may
> be disclosed under Article 25 (Exchange of Information and
> Administrative Assistance) of the Convention.
>
> **Article 25**

**EXCHANGE OF INFORMATION AND ADMINISTRATIVE ASSISTANCE**

1\. The competent authorities of the Contracting States shall exchange
such information as may be relevant for carrying out the provisions of
this Convention or of the domestic laws of the Contracting States
concerning the taxes covered by the Convention insofar as the taxation
thereunder is not contrary to the Conven­tion, including information
relating to the assessment or collection of, the enforcement or
prosecution in respect of, or the determination of appeals in relation
to, the taxes covered by the Convention. The exchange of information is
not restricted by paragraph 1 of Article 1 (General Scope).

2\. Any information received under this Article by a Contracting State
shall be treated as secret in the same manner as information obtained
under the domestic laws of that State and shall be disclosed only to
persons or authorities (including courts and administrative bodies)
involved in the assessment, collection, or administration of, the
enforcement or prosecution in respect of, or the determination of
appeals in relation to, the taxes referred to above, or the oversight of
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.

3\. In no case shall the provisions of the preceding paragraphs 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 of that or of the other Contracting State;
>
> b\) to supply information that is not obtainable under the laws or in
> the normal course of the administration of that or of the other
> Contracting State;
>
> c\) to supply information that 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
> (ordre public).

4\. If information is requested by a Contracting State in accordance
with 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 purposes. The
obligation contained in the preceding sentence is subject to the
limitations of paragraph 3 but in no case shall such limitations be
construed to permit a Contracting State to decline to supply information
because it has no domestic interest in such information.

5\. In no case shall the provisions of paragraph 3 be construed to
permit a Contracting State to decline to supply information requested by
the other Contracting State because the information is held by a bank,
other financial institution, nominee or 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 of
the requested Contracting State shall have the power to ask for the
disclosure of information and to conduct investigations and hearings
notwithstanding any contrary provisions in its domestic tax laws.

6\. Notwithstanding paragraph 3, in order to obtain information
requested within the framework of this Article, the tax administration
of the requested Contracting State shall have the power to ask for the
disclosure of information and to conduct investigations and hearings
outside any time limits required in its domestic tax laws.

7\. Penalties provided by the domestic laws of the requested State for a
person failing to give information relevant for carrying out its
domestic tax laws shall apply as if the obligation to give information
provided in paragraphs 5 or 6 was an obligation provided in the domestic
tax laws of the requested State.

8\. Where a person refuses to give information requested within the
framework of this Article or fails to give such information within the
time required by the tax administration of the requested State, the
requested State may bring appropriate enforcement proceedings against
such person. Such enforcement proceedings include, but are not limited
to, summary summons enforcement proceedings in the case of the United
States and summary proceedings (procédure en référé/procedure in
kortgeding) in the case of Belgium. Such person may be compelled to give
such information under pain of such civil or criminal penalties as may
be available under the laws of the requested State.

9\. If specifically requested by the competent authority of a
Contracting State, the competent author­ity of the other Contracting
State shall provide information under this Article in the form of
depositions of witnesses and authenticated copies of unedited original
documents (including books, papers, statements, records, accounts, and
writings).

10\. The requested State shall allow representatives of the requesting
State to enter the requested State to interview individuals and examine
books and records. Such interview or examination shall take place under
the conditions and within the limits agreed upon by the competent
authorities of both Contracting States.

11\. The competent authorities of the Contracting States shall agree
upon the mode of application of this Article, including agreement to
ensure comparable levels of assistance to each of the Contracting
States. 

12\. If the United States terminates paragraph 3 of Article 10
(Dividends) in accordance with paragraph 12 of Article 10, Belgium's
obligations pursuant to paragraph 5 shall cease as of the date that
paragraph 3 of Article 10 is no longer effective.

**Article 26**

**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 27**

**MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS**

Nothing in this Convention shall affect the fiscal privileg­es of members
of diplomatic missions or consular posts under the general rules of
international law or under the provisions of special agreements.

**Article 28**

**ENTRY INTO FORCE**

1\. This Convention shall be subject to ratification in accordance with
the applicable procedures of each Contracting State. Each Contracting
State shall notify the other through the diplomatic channel, accompanied
by an instrument of ratification, when it has completed the required
procedures.

2\. The Convention shall enter into force on the date on which the later
of the notifications is received, and its provisions shall have effect:

> a\) in respect of taxes withheld at source, for amounts paid or
> credited on or after the first day of the second month next following
> the date on which the Convention enters into force;
>
> b\) in respect of other taxes, for taxable periods beginning on or
> after the first day of January next follow­ing the date on which the
> Convention enters into force.

3\. Subparagraph f) of paragraph 5 of Article 21 (Limitation on
Benefits) shall not have effect until January 1, 2011.

4\. 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, as modified by a Supplementary Protocol (the "prior
Convention"), shall, in relation to any tax, cease to have effect as of
the date on which this Convention has effect with respect to such tax in
accordance with paragraphs 2 and 6 of this Article.

5\. Notwithstanding the preceding paragraph, where any person entitled
to benefits under the prior Convention would have been entitled to
greater benefits thereunder than under this Convention, the prior
Convention shall, at the election of such person, continue to have
effect in its entirety with respect to such person for a twelve-month
period from the date on which the provisions of this Convention would
have effect under paragraph 2 of this Article.

6\. Notwithstanding paragraphs 2 and 5, the provisions of Article 25
(Exchange of Information and Administrative Assistance) shall have
effect from the date of entry into force of the Convention, without
regard to the taxable period to which the matter relates.

7\. Notwithstanding paragraph 2, paragraphs 7 and 8 of Article 24
(Mutual Agreement Procedure) shall have effect, with respect to, and
without regard to the taxable period to which the particular case
relates:

> a\) cases that are under consideration by the competent authorities as
> of the date on which this Convention enters into force; and
>
> b\) cases that come under such consideration after such time,

and the commencement date for a case described in subparagraph a) of
this paragraph shall be the date on which this Convention enters into
force.

**Article 29**

**TERMINATION**

This Convention shall remain in force until terminated by a Contracting
State. Either Contracting State may terminate the Convention at any time
after 5 years from the date on which this Convention enters into force
by giving notice of termination to the other Contracting State through
diplo­matic channels. In such event, the Conven­tion shall cease to have
effect:

> a\) in respect of taxes withheld at source, for amounts paid or
> credited after the expiration of the 6-month period beginning on the
> date on which notice of termination was given; and

b\) in respect of other taxes, for taxable periods beginning on or after
­the expiration of the 6-month period beginning on the date on which
notice of termination was given.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto by
their respective Governments, have signed this Convention.

DONE at Brussels, in duplicate, in the English language, this
twenty-seventh day of November, 2006.

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF

THE UNITED STATES OF AMERICA: THE KINGDOM OF BELGIUM: