TREATIES AND OTHER INTERNATIONAL ACTS SERIES 07-1228.2 

________________________________________________________________________ 

DOUBLE TAXATION 

 Convention Between the 

UNITED STATES OF AMERICA 

and BELGIUM 

Signed at Brussels November 27, 2006 

 with 

Protocol 
 NOTE BY THE DEPARTMENT OF STATE 

 Pursuant to Public Law 89—497, approved July 8, 1966 

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued 

under the authority of the Secretary of State shall be competent 

 evidence . . . of the treaties, international agreements other than 

treaties, and proclamations by the President of such treaties and 

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime 

jurisdiction, and in all the tribunals and public offices of the 

United States, and of the several States, without any further proof 

or authentication thereof.” 
 BELGIUM 

 Double Taxation 

Convention signed at Brussels November 27, 2006; 

Transmitted by the President of the United States of America 

 to the Senate June 21, 2007 (Treaty Doc. 110-3, 

 110th Congress, 1st Session); 

Reported favorably by the Senate Committee on Foreign Relations 

 October 31, 2007 (Senate Executive Report No. 110-2, 

 110th Congress, 1st Session); 

Advice and consent to ratification by the Senate 

 December 14, 2007; 

Ratified by the President December 21, 2007; 

Entered into force December 28, 2007. 

With protocol. 
CONVENTION BET

THE GOVERNMENT OF THE UNITE

AND THE GOVERNMENT OF THE K

FOR THE AVOIDANCE OF DOUBLE 

PREVENTION OF FISCA

WITH RESPECT TO TAXE

The Government of the United States of America 

of Belgium, desiring to conclude a Convention for the av

prevention of fiscal evasion with respect to taxes on inco
2

Article 1

GENERAL SCO

1. This Convention shall apply only to persons who 

Contracting States, except as otherwise provided in the C

2. Except as provided in subparagraph a) of paragra

Taxation), the Convention shall not restrict in any mann

accorded:

a) by the laws of either Contracting State; o

b) by any other agreement to which the Con

3. a) Notwithstanding the provisions of sub-pa

Article:

i) for purposes of paragraph 3 of Article 

Agreement on Trade in Services, the Con

arising as to the interpretation or applicat

particular, whether a taxation measure is 

shall be determined exclusively in accord

(Mutual Agreement Procedure) of this Co

ii) the provisions of Article XVII of the G

Services shall not apply to a taxation mea

agree that the measure is not within the sc

Discrimination) of this Convention.

b) For the purposes of this paragraph, a "me

procedure, decision, administrative action, or any 

4 Except to the extent provided in paragraph 5, thi

taxation by a Contracting State of its residents (as determ

its citizens. Notwithstanding the other provisions of this 

former long-term resident of a Contracting State may, fo

loss of such status, be taxed in accordance with the laws 

5. The provisions of paragraph 4 shall not affect:
3

a) the benefits conferred by a Contracting S

(Associated Enterprises), paragraphs 1 b), 2, 5, 6 

Security, Annuities, Alimony, and Child Suppor

Taxation), 23 (Non-Discrimination), and 24 (Mu

b) the benefits conferred by a Contracting S

(Pensions, Social Security, Annuities, Alimony, 

(Government Service), 19 (Students, Trainees, T

(Members of Diplomatic Missions and Consular 

neither citizens of, nor have been admitted for pe

6. An item of income, profit or gain derived throug

under the laws of either Contracting State shall be consi

State to the extent that the item is treated for purposes o

State as the income, profit or gain of a resident.

Article 2

TAXES COVERE

1. This Convention shall apply to taxes on income 

State irrespective of the manner in which they are levied

2. There shall be regarded as taxes on income all ta

elements of income, including taxes on gains from the al

3. The existing taxes to which this Convention shal

a) in the case of Belgium:

i) the individual income tax;

ii) the corporate income tax;

iii) the income tax on legal entities; a

iv) the income tax on non-residents;

including the prepayments and the surcha

b) in the case of the United States:
4

i) the Federal income taxes imposed 

excluding social security taxes); and

ii) the Federal excise taxes imposed 

4. The Convention shall apply also to any identical 

imposed after the date of signature of the Convention in 

taxes. The competent authorities of the Contracting Stat

changes that have been made in their respective taxation 

their obligations under this Convention.

Article 3

GENERAL DEFINIT

1. For the purposes of this Convention, unless the conte

a) the term "person" includes an individual, 

company, and any other body of persons;

b) the term "company" means any body cor

body corporate for tax purposes according to the 

organized;

c) the terms "enterprise of a Contracting Sta

Contracting State" mean respectively an enterpri

Contracting State, and an enterprise carried on b

State; the terms also include an enterprise carried 

through an entity that is treated as fiscally transp

d) the term "enterprise" applies to the carryi

e) the term "business" includes the perform

other activities of an independent character;

f) the term "international traffic" means any 

when such transport is solely between places in a 

g) the term "competent authority" means:

i) in Belgium: the Minister of Finan
5

ii) in the United States: the Secretar

h) the term "Belgium" means the Kingdom 

geographical sense, such term means the territor

sea and the seabed and subsoil and the superjace

areas beyond the territorial sea over which Belgi

accordance with international law;

i) the term "United States" means the Unit

states thereof and the District of Columbia; such 

thereof and the sea bed and subsoil of the subma

over which the United States exercises sovereign 

law; the term, however, does not include Puerto 

other United States possession or territory;

j) the term "national" of a Contracting State 

i) any individual possessing the nat

ii) any legal person, partnership or a

from the laws in force in that State;

k) the term "pension fund" means any perso

is:

i) operated principally:

A) to administer or provide p

benefits; or

B) to earn income for the ben

described in A); and

ii) is either:

A) in the case of Belgium, an 

regulated by the Bank Finance an

B) in the case of the United S

States with respect to the activitie

subparagraph.
6

As regards the application of the Convention at a

term not defined therein shall, unless the context otherw

ties agree to a common meaning pursuant to the provisio

Procedure), have the meaning which it has at that time u

purposes of the taxes to which the Convention applies, a

laws of that State prevailing over a meaning given to the 

Article 4

RESIDENT

1. For the purposes of this Convention, the term "re

any person who, under the laws of that State, is liable to 

residence, citizenship, place of management, place of inc

similar nature, and also includes that State and any politi

thereof. This term, however, does not include any perso

respect only of income from sources in that State or of p

establishment in that State.

2. An individual who is a United States citizen or a

permanent residence (a "green card" holder) is a resident 

individual has a substantial presence, permanent home or 

and if that individual is not a resident of a State other tha

taxation convention between that State and Belgium.

3. The term "resident of a Contracting State" includ

a) a pension fund established in that State; a

b) an organization that is established and ma

religious, charitable, scientific, artistic, cultural, o

notwithstanding that all or part of its income or gains ma

domestic law of that State.

4. Where, by reason of the provisions of paragraph 

Contracting States, then his status shall be determined as 
7

a) he shall be deemed to be a resident only 

home available to him; if he has a permanent ho

shall be deemed to be a resident only of the State 

relations are closer (center of vital interests);

b) if the State in which he has his center of 

if he does not have a permanent home available 

deemed to be a resident only of the State in whic

c) if he has an habitual abode in both States 

deemed to be a resident only of the State of whic

d) if he is a national of both States or of nei

of the Contracting States shall endeavor to settle 

5.. Where by reason of the provisions of paragraph 

resident of both Contracting States, the competent autho

mutual agreement procedure endeavor to settle the questi

reach such an agreement, that person shall not be entitled 

Convention, except those provided by paragraph 1 of Art

by paragraph 1 of Article 23 (Non-Discrimination) and by 

Procedure).

Article 5

PERMANENT ESTABLI

1. For the purposes of this Convention, the term "pe

place of business through which the business of an enter

2. The term "permanent establishment" includes esp

a) a place of management;

b) a branch;

c) an office;

d) a factory;

e) a workshop; and
8

I) a mine, an oil or gas well, a quarry, or an

resources.

3. a) A building site or construction or installa

establishment only if it lasts for more than twelv

b) An installation used for the exploration f

permanent establishment in a Contracting State 

in that State for more than twelve months.

4. Notwithstanding the preceding provisions of thi

establishment" shall be deemed not to include:

a) the use of facilities solely for the purpos

or merchandise belonging to the enterprise;

b) the maintenance of a stock of goods or m

solely for the purpose of storage, display or deliv

c) the maintenance of a stock of goods or m

solely for the purpose of processing by another en

d) the maintenance of a fixed place of busin

goods or merchandise, or of collecting informatio

e) the maintenance of a fixed place of busin

on, for the enterprise, any other activity of a prep

0 the maintenance of a fixed place of busin

activities mentioned in subparagraphs a) through 

the fixed place of business resulting from this co

auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 

agent of an independent status to whom paragraph 6 app

enterprise and has and habitually exercises in a Contract

contracts that are binding on the enterprise, that enterpri

establishment in that State in respect of any activities tha

enterprise, unless the activities of such person are limite
9

that, if exercised through a fixed place of business, wou

a permanent establishment under the provisions of that p

6. An enterprise shall not be deemed to have a perm

State merely because it carries on business in that State 

agent, or any other agent of an independent status, provi

ordinary course of their business as independent agents.

7. The fact that a company that is a resident of a CO

by a company that is a resident of the other Contracting 

other State (whether through a permanent establishment 

account in determining whether either company has a pe

State.

Article 6

INCOME FROM REAL P

1. Income derived by a resident of a Contracting St

income from agriculture or forestry, situated in the other 

other State.

The term "real property" shall have the meaning 

Contracting State in which the property in question is si

include property accessory to real property (including liv

agriculture and forestry), rights to which the provisions o

property apply, usufruct of real property and rights to va

consideration for the working of, or the right to work, mi

natural resources. Ships and aircraft shall not be regarde

3. The provisions of paragraph I shall apply to inco

or use in any other form of real property.

4. The provisions of paragraphs 1 and 3 shall also a

of an enterprise.
10

5. A resident of a Contracting State who is liable to 

income from real property situated in the other Contract

to compute the tax on such income on a net basis as if s

attributable to a permanent establishment in such other 

binding for the taxable year of the election and all subse

competent authority of the Contracting State in which th

terminate the election.

Article 7

BUSINESS PROF

I . The profits of an enterprise of a Contracting Sta

unless the enterprise carries on business in the other Co

establishment situated therein. If the enterprise carries o

the enterprise may be taxed in the other State but only s

that permanent establishment.

Subject to the provisions of paragraph 3, where 

carries on business in the other Contracting State throug

therein, there shall in each Contracting State be attribute

profits that it might be expected to make if it were a dist

engaged in the same or similar activities under the same 

3. In determining the profits of a permanent establi

deductions expenses that are incurred for the purposes o

including executive and general administrative expenses 

which the permanent establishment is situated or elsewh

4. No profits shall be attributed to a permanent esta

purchase by that permanent establishment of goods or m

5. For the purposes of the preceding paragraphs, th

permanent establishment shall be determined by the sam

good and sufficient reason to the contrary.
11

6. Where profits include items of income that are d

the Convention, then the provisions of those Articles sh

this Article.

7. In applying this Article, paragraph 8 of Article 10 

(Interest), paragraph 3 of Article 12 (Royalties), paragra

paragraph 2 of Article 20 (Other Income), any income or 

establishment during its existence is taxable in the Cont

establishment is situated even if the payments are deferr

has ceased to exist.

Article 8

SHIPPING AND AIR TRA

1. Profits of an enterprise of a Contracting State fro

international traffic shall be taxable only in that State.

2. For purposes of this Article, profits from the ope

are not limited to:

a) profits from the rental of ships or aircraft 

b) profits from the rental on a bareboat basis 

incidental to profits from the operation of ships o

c) profits from the rental on a bareboat basis o

are operated in international traffic by the lessee.

Profits derived by an enterprise from the inland transport 

Contracting State shall be treated as profits from the oper

traffic if such transport is undertaken as part of internatio

3. Profits of an enterprise of a Contracting State fro

containers (including trailers, barges, and related equipm

shall be taxable only in that Contracting State, except to 

trailers and related equipment are used for transport solel

Contracting State.

13

Article 10

DIVIDENDS

1. Dividends paid by a company that is a resident o

other Contracting State may be taxed in that other State.

2. However, such dividends may also be taxed in th

company paying the dividends is a resident and accordin

dividends are beneficially owned by a resident of the oth

otherwise provided, the tax so charged shall not exceed:

a) 5 percent of the gross amount of the divi

company that owns directly at least 10 percent o

paying the dividends;

b) 15 percent of the gross amount of the div

3. Notwithstanding the provisions of paragraph 2, w

dividends is a resident of the United States, such dividen

States if the beneficial owner is:

a) a company that is a resident of Belgium t

shares representing 80 percent or more of the vo

dividends for a 12-month period ending on the d

dividend is determined and:

i) satisfies the conditions of clause 

paragraph 2 of Article 21 (Limitation on 

ii) satisfies the conditions of clauses 

of paragraph 2 of Article 21, provided th

conditions described in paragraph 4 of th

dividends;

iii) is entitled to benefits with respect 

paragraph 3 of Article 21; or

iv) has received a determination purs

with respect to this paragraph; or
14

b) a pension fund that is a resident of Belg

not derived from the carrying on of a business b

associated enterprise.

4. Notwithstanding the provisions of paragraph 2, 

dividends is a resident of Belgium, such dividends shal

beneficial owner of the dividends is:

a) a company that is a resident of the Unite

representing at least 10 percent of the capital of 

12-month period ending on the date the dividend 

b) a pension fund that is a resident of the U

dividends are not derived from the carrying on o

through an associated enterprise.

5. Paragraphs 2, 3 and 4 shall not affect the taxatio

profits out of which the dividends are paid.

6. a) Subparagraph a) of paragraph 2 and subp

apply in the case of dividends paid by a U.S. Reg

U.S. Real Estate Investment Trust (REIT). In th

subparagraph b) of paragraph 2 and subparagrap

case of dividends paid by a REIT, subparagraph 

of paragraph 3 shall apply only if:

i) the beneficial owner of the divide

in either case holding an interest of not m

ii) the dividends are paid with respe

traded and the beneficial owner of the di

of not more than 5 percent of any class o

iii) the beneficial owner of the divide

not more than 10 percent in the REIT and 
15

b) For purposes of this paragraph, a REIT sh

single interest in real property exceeds 10 percen

For the purposes of this rule, foreclosure property 

real property. Where a REIT holds an interest in 

owning directly a proportion of the partnership's 

to its interest in the partnership.

7. For purposes of this Article, the term "dividends" 

rights, not being debt-claims, participating in profits, as w

same taxation treatment as income from shares under the 

a resident.

8. The provisions of paragraphs 1 through 6 shall no

dividends, being a resident of a Contracting State, carrie

State, of which the payer is a resident, through a perman

the holding in respect of which the dividends are paid is 

permanent establishment. In such case the provisions of 

apply.

9. A Contracting State may not impose any tax on d

State, except insofar as the dividends are paid to a reside

dividends are attributable to a permanent establishment s

nor may it impose tax on a corporation's undistributed pr

10, even if the dividends paid or the undistributed profits 

income arising in that State.

10. a) A company that is a resident of one of the 

establishment in the other State or that is subject 

on its income that may be taxed in the other State 

Property) or under paragraph 1 of Article 13 (Gai

to a tax in addition to the tax allowable under the 

b) Such tax, however, may be imposed on only 

of the company attributable to the permanent esta
16

income referred to in the preceding sentence tha

under paragraph 1 of Article 13 that, in the case 

dividend equivalent amount of such profits or inc

amount that is analogous to the dividend equival

11. The tax referred to in subparagraphs a) and b) of pa

rate exceeding the rate specified in subparagraph a) of p

imposed on a company that:

a) satisfies the conditions of clause i) or ii) o

paragraph 2 of Article 21 (Limitation on Benefits

b) satisfies the conditions of clauses i) and i

paragraph 2 of Article 21, provided that the comp

described in paragraph 4 of that Article with res

gain described in paragraph 10;

c) is entitled under paragraph 3 of Article 2

an item of income, profit, or gain described in pa

d) has received a determination pursuant to 

respect to this paragraph.

12. a) Notwithstanding Article 29 (Termination)

i) paragraph 3 of this Article shall te

effective for amounts paid or credited on 

following the year in which the Conventi

of the 5th year following entry into force, 

Treasury, on the basis of a report of the C

certifies to the Senate of the United State

complied with its obligations under Articl

Administrative Assistance); and

ii) the United States may terminate p

written notice of termination to Belgium, 

before June 30 in any year. In such case, 
17

effective for amounts paid or credited on 

following that in which such notice is giv

such notice of termination unless it has d

respect to Articles 24 (Mutual Agreemen

altered the balance of benefits of the Con

b) The competent authorities shall consult a

that arise with respect to the functioning of Artic

trigger a termination under subparagraph a).

Article 11

INTEREST

1. Interest arising in a Contracting State and benefi

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 i

not qualify as portfolio interest under United Sta

States but, if the beneficial owner of the interest 

may be taxed at a rate not exceeding 15 percent o

b) interest arising in Belgium that is determ

income, profits or other cash flow of the debtor o

value of any property of the debtor or a related p

distribution or similar payment made by the debt

Belgium, and according to the laws of Belgium, 

of the United States, the interest may be taxed at 

gross amount of the interest; and

c) interest that is an excess inclusion with re

estate mortgage investment conduit may be taxed 

domestic law.
18

3. The term "interest" as used in this Article means 

kind, whether or not secured by mortgage, and whether 

the debtor's profits, and in particular, income from gove

bonds or debentures, including premiums or prizes attac

debentures, and all other income that is subjected to the 

from money lent by the taxation law of the Contracting 

Income dealt with in Article 10 (Dividends) and penalty 

regarded as interest for the purposes of this Convention.

4. The provisions of paragraph I shall not apply if t

being a resident of a Contracting State, carries on busine

which the interest arises, through a permanent establishm

claim in respect of which the interest is paid is effective

establishment. In such case the provisions of Article 7 (

5. Interest shall be deemed to arise in a Contracting 

that State. Where, however, the person paying the intere

Contracting State or not, has in a Contracting State a per

with which the indebtedness on which the interest is pai

borne by such permanent establishment, then such intere

in which the permanent establishment is situated.

6. Where, by reason of a special relationship betwe

between both of them and some other person, the amoun

debt-claim for which it is paid, exceeds the amount whic

payer and the beneficial owner in the absence of such re

shall apply only to the last-mentioned amount. In such c

shall remain taxable according to the laws of each Contr

the other provisions of this Convention.
19

Article 12

ROYALTIES

1. Royalties arising in a Contracting State and bene

Contracting State shall be taxable only in that other State

2. The term "royalties" as used in this Article mean

consideration for the use of, or the right to use, any copy

work (including cinematographic films and software), an

plan, secret formula or process, or for information conce

scientific experience.

3. The provisions of paragraph 1 shall not apply if t

being a resident of a Contracting State, carries on busine

through a permanent establishment situated therein and 

the royalties are paid is effectively connected with such 

the provisions of Article 7 (Business Profits) shall apply

4. Where, by reason of a special relationship betwe

between both of them and some other person, the amoun

use, right, or information for which they are paid, excee

agreed upon by the payer and the beneficial owner in th

provisions of this Article shall apply only to the last-me

excess part of the payments shall remain taxable accord

State, due regard being had to the other provisions of th

Article 13

GAINS

I . Gains derived by a resident of a Contracting Stat

of real property situated in the other Contracting State m

2. For the purposes of this Article the term "real pr

State" shall include:

a) real property referred to in Article 6 (Inco
20

b) where that other State is the United States

3. Gains from the alienation of movable property fo

permanent establishment that an enterprise of a Contract

State, including such gains from the alienation of such a 

with the whole enterprise), may be taxed in that other St

4. Gains derived by an enterprise of a Contracting S

aircraft operated in international traffic or personal prope

ships or aircraft shall be taxable only in that State.

5. Gains derived by an enterprise of a Contracting S

(including trailers and related equipment for the transpor

of goods or merchandise shall he taxable only in that Sta

and related equipment are used for transport solely betw

State.

6. Gains from the alienation of any property other t

through 5 shall be taxable only in the Contracting State o

Article 14

INCOME FROM EMPL

1. Subject to the provisions of Articles 15 (Director

Annuities, Alimony, and Child Support), 18 (Governme

Teachers and Researchers), salaries, wages, and other sim

resident of a Contracting State in respect of an employm

unless the employment is exercised in the other Contrac

exercised, such remuneration as is derived therefrom ma

2. Notwithstanding the provisions of paragraph 1, r

Contracting State in respect of an employment exercised 

taxable only in the first-mentioned State if:
21

a) the recipient is present in the other State f

the aggregate 183 days in any twelve month perio

year concerned; and

b) the remuneration is paid by, or on behalf 

the other State; and

c) the remuneration is not borne by a perma

has in the other State.

3. Notwithstanding the preceding provisions of this 

paragraph 1 that is derived by a resident of a Contracting 

member of the regular complement of a ship or aircraft o

taxable only in that State.

Article 15

DIRECTORS' FE

Directors' fees and other compensation derived b

services rendered in the other Contracting State in his ca

directors of a company that is a resident of the other Con

other Contracting State.

Article 16

ENTERTAINERS AND SP

1. Income derived by a resident of a Contracting , Sta

motion picture, radio, or television artiste, or a musician

activities as such exercised in the other Contracting Stat

tax in that other Contracting State under the provisions o

(Income from Employment) may be taxed in that Other S

gross receipts derived by such entertainer or sportsman, 

or borne on his behalf, from such activities does not exc

dollars ($20,000) or its equivalent in euro for the taxable 
22

2. Where income in respect of personal activities ex

sportsman in his capacity as such accrues not to the ente

another person, that income may, notwithstanding the pr

in the Contracting State in which the activities of the ent

only in cases in which the contract pursuant to which the 

a) designates (by name or description) the en

b) allows the other party to the contract (or s

entertainer, sportsman or the first-mentioned othe

who is to perform the personal activities.

Article 17

PENSIONS, SOCIAL SECURIT

ALIMONY, AND CHILD 

1. Subject to paragraph 2 of Article 18 (Government 

a) pensions and other similar remuneration b

Contracting State shall be taxable only in that Stat

b) notwithstanding subparagraph a), the amo

remuneration arising in a Contracting State that, w

taxation in that State if the beneficial owner were 

from taxation in the Contracting State of which th

2. Notwithstanding the provisions of paragraph 1, pa

under provisions of the social security or similar legislati

other Contracting State or to a citizen of the United State

mentioned State.

3. Annuities derived and beneficially owned by an in

State shall be taxable only in that State. The term "annuit

stated sum paid periodically at stated times during a spec

an obligation to make the payments in return for adequate 

services rendered).
23

4. Alimony paid by a resident of a Contracting State 

State shall be taxable only in that other State. The term "

means periodic payments made pursuant to a written sep

divorce, separate maintenance, or compulsory support, w

recipient under the laws of the State of which he is a resid

5. Periodic payments, not dealt with in paragraph 4, 

pursuant to a written separation agreement or a decree of 

compulsory support, paid by a resident of a Contracting 

Contracting State, shall be taxable only in the first-mentio

6. Income earned by a pension fund that is a residen

as income of an individual who is a resident of the other 

subject to the provisions of paragraph 1 of this Article, to 

benefit of, that individual from the pension fund (and not 

that is a resident of the first-mentioned Contracting State

7. Where an individual who is a member or benefici

that is a resident of one of the Contracting States (or in a 

comparable third State) exercises an employment or self-

State:

a) contributions paid by or on behalf of that 

the period that he exercises an employment or sel

State shall be deductible (or excludible) in compu

Contracting State; and

b) any benefits accrued under the pension pla

pension plan by or on behalf of the individual's em

be treated as part of the employee's taxable incom

allowed as a deduction in computing the taxable i

Contracting State.

The relief available under this paragraph shall not exceed 

the other Contracting State to residents of that Contractin
24

accrued under, a pension plan established in that Contrac

States, or recognized for tax purposes in that Contracting 

8. The provisions of paragraph 7 of this Article shal

a) contributions by or on behalf of the indiv

individual's employer, under the pension plan (or 

which the first-mentioned pension plan was subs

individual began. to exercise an employment or s

Contracting State;

b) the individual has performed personal ser

a cumulative period not exceeding ten calendar y

c) the competent authority of the other Cont

pension plan generally corresponds to a pension p

other Contracting State.

9. a) Where a citizen of the United States who 

employment in Belgium the income from which 

is borne by an employer who is a resident of Belg

situated in Belgium, and the individual is a memb

pension fund that is a resident of Belgium (or in a 

comparable third State),

i) contributions paid by or on behalf 

during the period that he exercises the em

attributable to the employment, shall be d

his taxable income in the United States; an

ii) any benefits accrued under the pen

the pension plan by or on behalf of the ind

and that are attributable to the employmen

employee's taxable income in computing h

States.

b) The relief available under this paragraph s
25

i) the relief that would be allowed by 

contributions to, or benefits accrued under

plan recognized for tax purposes in the Un

ii) the amount of the contributions or 

Belgium.

c) For purposes of determining an individua

receive tax benefits with respect to a pension plan 

contributions made to, or benefits accrued under, 

purposes in Belgium shall be treated as contributi

corresponding pension plan established in the Un

available to the individual under this paragraph.

d) This paragraph shall not apply unless the 

States has agreed that the pension plan generally 

recognized for tax purposes in the United States.

10. a) For purposes of paragraphs 7 and 9, a sim

other than a Contracting State will be considered 

State only if that third State:

i) is a member state of the European 

Economic Area state or any party to the N

or Switzerland;

ii) provides, under a tax treaty or othe

for contributions to a pension fund that is 

is providing benefits under paragraph 7 or 

iii) has an information exchange provi

arrangement with the Contracting State th

paragraph 7 or 9 that is satisfactory to tha

b) a pension plan is recognized for tax purpo

contributions to the plan would qualify for tax rel
26

Article 18

GOVERNMENT SE

1. Notwithstanding the provisions of Articles 14 (In

(Directors' Fees), 16 (Entertainers and Sportsmen) and 1

Researchers):

a) salaries, wages and other similar remune

individual in respect of services rendered to a Co

subdivision or local authority thereof shall be tax

b) such remuneration, however, shall be tax

if the services are rendered in that State and the i

who:

is a national of that State; or

i . ) did not become a resident of that 

the services.

2. Notwithstanding the provisions of paragr

remuneration paid by, or out of funds created by, 

subdivision or a local authority thereof to an indi

to that State or subdivision or authority (other tha

Article 17 (Pensions, Social Security, Annuities, 

shall be taxable only in that State;

b) such pensions and other similar remunera

the other Contracting State if the individual is a re

3. The provisions of Articles 14, 15, 16 and 17 shall 

and other similar remuneration, in respect of services ren

carried on by a Contracting State or a political subdivisio

Article 19

STUDENTS, TRAINEES, TEACHERS 

a) Payments, other than compensation for pe
27

or business trainee who is, or was immediately b

resident of the other Contracting State, and who i

for the purpose of his full-time education or for h

in that State, provided that such payments arise o

purpose of his maintenance, education or training

this paragraph shall apply to a business trainee on

two years from the date the business trainee first 

Contracting State for the purpose of training.

b) A student or business trainee within the m

exempt from tax in the Contracting State in whic

with respect to income from personal services in a

or its equivalent in euro annually. The competent 

adjust the amount provided in this subparagraph t

account changes in the U.S. personal exemption a

basic allowance (quotite exemptee/belastingvrije 

c) For purposes of this paragraph, a business 

i) who is temporarily present in a Co

purpose of securing training required to qu

profession or professional specialty; or

ii) who is temporarily present in a Co

under contract with, a resident of the other 

primary purpose of acquiring technical, pr

experience from a person other than that r

State (or a person related to such resident 

2. An individual who is a resident of a Contracting S

other Contracting State and who is temporarily present in 

purpose of teaching or carrying on research at a school, c

or research institution shall be exempt from tax in the oth

exceeding two years from the date of the individual's arri
18

remuneration received in consideration of teaching or ca

shall not apply to income from research if such research 

but primarily for the private benefit of a specific person 

Article 20

OTHER INCOM

1. Items of income beneficially owned by a resident 

arising, not dealt with in the foregoing Articles of this C

State.

2. The provisions of paragraph 1 shall not apply to i

property as defined in paragraph 2 of Article 6 (Income f

owner of the income, being a resident of a Contracting St

Contracting State through a permanent establishment situ

attributable to such permanent establishment. In such ca

Profits) shall apply.

Article 21

LIMITATION ON BEN

1. A resident of a Contracting State shall be entitled 

residents of a Contracting State by this Convention only t

2. A resident of a Contracting State shall be entitled 

if the resident is:

a) an individual;

b) a Contracting State or any political subdivi

c) a company, if:

i) its principal class of shares (and an

regularly traded on one or more recognized 

A) its principal class of shares 

stock exchange located in the Cont
29

a resident (or, in the case of a com

recognized stock exchange locate

other European Economic Area s

resident in the United States, on a 

another state that is a party to the 

Agreement); or

B) the company's primary pl

Contracting State of which it is a 

ii) at least 50 percent of the aggregat

(and at least 50 percent of any disproport

are owned directly or indirectly by five o

under clause i) of this subparagraph, prov

ownership, each intermediate owner is a r

d) a person described in paragraph 3 of Arti

case of a person described in subparagraph a) of 

i) more than 50 percent of the perso

participants are individuals resident in eit

ii) the organization sponsoring such 

Convention pursuant to this Article; or

e) a person other than an individual, if:

i) on at least half the days of the tax

class of shares or other beneficial interest

indirectly, by residents of the Contracting 

that are entitled to the benefits of this Co

subparagraph b), clause i) of subparagrap

paragraph; and

ii) less than 50 percent of the person'

determined in the person's State of residen

indirectly, to persons who are not residen
30

the benefits of this Convention under sub

of subparagraph c), or subparagraph d) o

that are deductible for purposes of the ta

person's State of residence (but not inclu

ordinary course of business for services o

respect of financial obligations to a bank 

3. A company that is a resident of a Contracting Sta

of the Convention if:

a) at least 95 percent of the aggregate votin

least 50 percent of any disproportionate class of 

by seven or fewer persons that are equivalent be

b) less than 50 percent of the company's gro

company's State of residence, for the taxable yea

indirectly, to persons who are not equivalent ben

not including arm's length payments in the ordin

tangible property and payments in respect of fina

related to the payor), that are deductible for the p

Convention in the company's State of residence.

4. a) A resident of a Contracting State will be e

with respect to an item of income derived from t

whether the resident is entitled to benefits under 

engaged in the active conduct of a trade or busine

than the business of making or managing investm

unless these activities are banking, insurance, or 

hank, insurance company or registered securities 

the other Contracting State is derived in connecti

business.

h) If a resident of a Contracting State or any 

a trade or business activity in the other Contractin
31

income, subparagraph a) of this paragraph shall 

business activity in the first-mentioned State is s

business activity in the other State. Whether a tra

purposes of this paragraph will be determined ba

c) In determining whether a person is "enga

business" in a Contracting State under subparagr

conducted by persons connected to such person 

such person. A person shall he connected to anot

of the beneficial interest in the other (or, in the c

the aggregate voting power and at least 50 perce

the company or of the beneficial equity interest i

possesses, directly or indirectly, at least 50 perce

case of a company, at least 50 percent of the agg

percent of the aggregate value of the shares in th

interest in the company) in each person. In any c

connected to another if, based on all the relevant 

control of the other or both are under the control 

5. A person that is a resident of a Contracting State 

company for a multinational corporate group shall also b

Convention otherwise accorded to residents of that Cont

other specified conditions for the obtaining of such bene

headquarters company for this purpose only if:

a) it provides a substantial portion of the ov

the group, which may include, but cannot be prin

b) the corporate group consists of companie

an active business in, at least five countries, and 

each of the five countries (or five groupings of co

the gross income of the group;
32

c) the business activities carried on in any o

residence of the headquarters company generate 

of the group;

d) no more than 25 percent of its gross inco

e) it has, and exercises, independent discret

functions referred to in subparagraph a);

f) it is subject to the same income taxation 

persons described in paragraph 4; and

g) the income derived in the other State eith

incidental to, the active business referred to in su

If the gross income requirements of subparagraphs b), c

fulfilled, they will be deemed to be fulfilled if the requir

gross income of the preceding four years.

6. Notwithstanding the preceding provisions of this 

Belgium derives interest, or royalties from the United S

interest, or royalties is exempt from taxation in Belgium 

permanent establishment which that enterprise has in a t

otherwise apply under the other provisions of the Conve

the tax that is actually paid with respect to such income 

of the tax that would have been payable in Belgium if th

the enterprise and were not attributable to the permanen

interest or royalties to which the provisions of this parag

States at a rate that shall not exceed 15 percent of the gr

this paragraph shall not apply if:

a) in the case of interest, as defined in Artic

United States is derived in connection with, or is 

trade or business carried on by the permanent est

the business of making, managing, or simply hol

own account, unless these activities are banking, 
33

bank, or registered securities dealer); or

b) in the case of royalties, as defined in Arti

received as compensation for the use of, or the ri

or developed by the permanent establishment itse

7. A resident of a Contracting State that is not entit

paragraphs of this Article shall, nevertheless, be granted 

competent authority of the other Contracting State deter

acquisition, or maintenance of such person and the cond

of its principal purposes the obtaining of benefits under 

authority of the other Contracting State shall consult wit

mentioned State before denying the benefits of the Conv

8. For the purposes of this Article:

a) the term "principal class of shares" mean

company, provided that such class of shares repr

and value of the company. If no single class of o

the majority of the aggregate voting power and v

class of shares" are those classes that in the aggre

aggregate voting power and value of the company

b) the term "disproportionate class of shares

company resident in a Contracting State that entit

disproportionately higher participation, through d

otherwise, in the earnings generated in the other 

activities of the company when compared to its p

activities of such company;

c) the term "shares" shall include depository 

d) the term "recognized stock exchange" mea

i) the NASDAQ System owned by t

Dealers, Inc. and any stock exchange regi

Exchange Commission as a national secu
34

Securities Exchange Act of 1934;

ii) the Brussels Stock Exchange;

iii) the Irish Stock Exchange and the 

Frankfurt, Hamburg, Lisbon, London, M

and

iv) any other stock exchanges agreed 

the Contracting States;

e) a class of shares is considered to be regul

stock exchanges in a taxable year if the aggregate 

on such stock exchange or exchanges during the 

percent of the average number of shares outstand

taxable year;

0 a company's primary place of manageme

Contracting State of which it is a resident only if 

management employees exercise day-to-day resp

financial, and operational policy decision making 

and indirect subsidiaries) in that State than in any 

more of the day-to-day activities necessary for pr

that State than in any other state;

g) the term "equivalent beneficiary" means a 

European Union or of any other European Econom

North American Free Trade Agreement, or of Sw

i) A) would be entitled to all the 

convention between any member 

other European Economic Area sta

Free Trade Agreement, or Switzer

benefits of this Convention are cla

subparagraph a), subparagraph b), 

subparagraph d) of paragraph 2, pr
35

not contain a comprehensive limi

resident would be entitled to the b

subparagraph a), subparagraph b)

subparagraph d) of paragraph 2 if 

the Contracting States under Artic

B) with respect to insurance p

Article 10 (Dividends), 11 (Intere

under such convention to a rate o

for which benefits are being claim

least as low as the rate applicable 

ii) is a resident of a Contracting Stat

Convention by reason of subparagraph a)

subparagraph c), or subparagraph d) of pa

h) with respect to dividends, interest, or roy

beneficially owned by a company that is a reside

is a resident of a member state of the European U

requirements of subparagraph g) i) B) for purpos

States resident is entitled to the benefits of the C

payment of dividends, interest, or royalties arisin

resident of a member state of the European Unio

pursuant to any directive of the European Union, 

convention between Belgium and that other mem

provide for a higher rate of tax with respect to su

applicable to such United States company under 

Article 22

RELIEF FROM DOUBLE 

In the case of Belgium, double taxation will be re

a) Where a resident of Belgium derives inco
36

royalties, which is taxed in the United States in a

Convention, Belgium shall exempt such income 

amount of tax on the remainder of the income of 

which would have been applicable if such incom

b) The exemption provided by subparagraph 

income treated as dividends under Belgian law, w

Belgium from a participation in an entity that der

the United States or any state thereof, where that 

corporation by the United States, provided that th

by the United States, proportionally to his partici

of which the income treated as dividends under B

income is the income received after deduction of 

elsewhere in relation to the management of the pa

c) Dividends derived by a company which is 

which is a resident of the United States, shall be e

in Belgium to the extent that exemption would ha

had been residents of Belgium.

d) Where dividends described in subparagra

corporate income tax in Belgium, Belgium shall d

relating to these dividends, the United States tax 

accordance with Article 10 (Dividends). This ded

corporate income tax which is proportionally rela

e) Subject to the provisions of Belgian law r

tax of taxes paid abroad, where a resident of Belg

income for Belgian tax purposes which are interes

levied on that income shall be allowed as a credit 

income.

0 Where, in accordance with Belgian law, lo

on by a resident of Belgium in a permanent establ
37

have been effectively deducted from the profits 

Belgium, the exemption provided for in subpara

the profits of other taxable periods attributable to 

those profits have also been exempted from tax i

compensation for the said losses.

2. In accordance with the provisions and subject to 

States (as it may be amended from time to time without 

the United States shall allow to a resident or citizen of th

United States tax on income applicable to residents and c

a) the income tax paid or accrued to Belgium 

citizen; and

b) in the case of a United States company o

stock of a company that is a resident of Belgium 

company receives dividends, the income tax paid 

of the payer with respect to the profits out of wh

For the purposes of this paragraph, the taxes referred to i

(Taxes Covered) shall be considered income taxes.

3. For the purposes of applying paragraph 2 of this 

determined under the laws of the United States, derived 

under this Convention, may be taxed in Belgium shall be 

Belgium.

4. Where a resident of Belgium is also a citizen or a 

resident of the United States and is subject to United Sta

of Article 1 (General Scope), the following rules shall ap

a) taxation by the United States of the incom

taxation in Belgium of income from sources arisi

under the laws of Belgium, and received by a resi

b) in the case of income from sources within 

paragraph 1 as if the tax paid to the United States 
38

that would have been paid to the United States if 

former citizen or a former long-term resident of 

c) for purposes of applying paragraph 2 to c

items of income referred to in subparagraph b), t

against United States tax the income tax paid to 

subparagraph b); the credit so allowed shall not r

tax below the amount that is taken into account i

d) for the exclusive purpose of relieving dou

subparagraph c), items of income referred to in s

in Belgium to the extent necessary to avoid doub

subparagraph c).

Article 23

NON-DISCRIMINA

1. Nationals of a Contracting State shall not be subj

any taxation or any requirement connected therewith tha

and connected requirements to which nationals of that o

particular with respect to residence, are or may be subje

persons who are not residents of one or both of the Con

purposes of United States taxation, United States nationa

worldwide basis are not in the same circumstances as na

residents of the United States.

2. The taxation on a permanent establishment that a

in the other Contracting State shall not be less favorably 

taxation levied on enterprises of that other State carrying 

3. The provisions of paragraphs 1 and 2 shall not be 

State to grant to residents of the other Contracting State 

reductions for taxation purposes on account of civil statu

grants to its own residents.
39

4. Except where the provisions of paragraph I of A

paragraph 6 of Article 11 (Interest), or paragraph 4 of Ar

royalties, and other disbursements paid by a resident of 

other Contracting State shall, for the purpose of determi

tioned resident, be deductible under the same conditions 

the first-mentioned State. Similarly, any debts of a resid

of the other Contracting State shall, for the purpose of d

first-mentioned resident, be deductible under the same c

to a resident of the first-mentioned State.

5. Enterprises of a Contracting State, the capital of 

controlled, directly or indirectly, by one or more resident

not be subjected in the first-mentioned State to any taxat

therewith that is more burdensome than the taxation and 

similar enterprises of the first-mentioned State are or ma

6. Nothing in this Article shall be construed as prev

imposing a tax as described in paragraph 10 of Article 10 

7. The provisions of this Article shall, notwithstand

Covered), apply to taxes of every kind and description im

political subdivision or local authority thereof.

Article 24

MUTUAL AGREEMENT P

1. Where a person considers that the actions of one 

or will result for such person in taxation not in accordanc

Convention, it may, irrespective of the remedies provide

and the time limits prescribed in such laws for presenting 

the competent authority of either Contracting State. The 

years from the first notification of the action resulting in 

provisions of the Convention.
40

The competent authority shall endeavor, if the ob

if it is not itself able to arrive at a satisfactory solution, t

with the competent authority of the other Contracting St

taxation which is not in accordance with the Conventio

suspended during the period that any mutual agreement p

3. The competent authorities of the Contracting Sta

agreement any difficulties or doubts arising as to the int

Convention. In particular the competent authorities of th

a) to the same attribution of income, deduct

enterprise of a Contracting State to its permanen

Contracting State;

b) to the same attribution of income, deduct

permanent establishments of an enterprise where 

located in the Contracting States, whether or not 

Contracting State;

c) to the same allocation of income, deducti

persons;

d) to the settlement of conflicting applicatio

regarding:

i) the characterization of particular i

ii) the characterization of persons;

iii) the application of source rules wit

iv) the same meaning of any term use

e) to advance pricing arrangements; and

f) to the application of the provisions of dom

and interest in a manner consistent with the purpo

4. To the extent necessary to facilitate the resolution o

mutual agreement proceeding under the preceding paragr

Contracting State shall have the power to ask any person 
41

for the disclosure of such information and to conduct inv

notwithstanding any time limits in their domestic tax law

requests for information. Any agreement reached under 

notwithstanding any time limits or other procedural limi

Contracting States.

5. The competent authorities of the Contracting Sta

measures necessary to carry out the provisions of the Co

documentation to be furnished by a resident of a Contrac

for the exemptions or reductions of tax provided for in th

6. The competent authorities of the Contracting Sta

directly, including through a joint commission, for the pu

sense of the preceding paragraphs.

7. Where, pursuant to a mutual agreement procedu

authorities have endeavored but are unable to reach a co

shall be resolved through arbitration conducted in the ma

requirements of paragraph 8 and any rules or procedures 

if:

a) tax returns have been filed with at least on

respect to the taxable years at issue in the case;

b) the case is not a particular case that the co

date on which arbitration proceedings would othe

determination by arbitration; and

c) all concerned persons agree according to 

paragraph 8.

8. For the purposes of paragraph 7 and this paragrap

shall apply:

a) the term "concerned person" means the pr

authority for consideration under this Article and 

liability to either Contracting State may be directl
42

arising from that consideration;

b) the "commencement date" for a case is th

information necessary to undertake substantive c

has been received by both competent authorities;

c) arbitration proceedings in a case shall beg

i) two years after the commencemen

competent authorities have previously ag

ii) the earliest date upon which the ag

has been received by both competent auth

d) the concerned person(s), and their authori

agree prior to the beginning of arbitration procee

person any information received during the cours

either Contracting State or the arbitration board, 

hoard;

e) unless any concerned person does not acc

board, the determination shall constitute a resolut

Article and shall be binding on both Contracting 

0 for purposes of an arbitration proceeding 

the members of the arbitration board and their sta

authorities" to whom information may be disclos

Information and Administrative Assistance) of th

Article 25

EXCHANGE OF INFORMATION AND ADM

1. The competent authorities of the Contracting Stat

may be relevant for carrying out the provisions of this Co

the Contracting States concerning the taxes covered by th

thereunder is not contrary to the Convention, including in

or collection of, the enforcement or prosecution in respec
43

relation to, the taxes covered by the Convention. The ex

by paragraph 1 of Article 1 (General Scope).

2. Any information received under this Article by a 

secret in the same manner as information obtained under 

shall be disclosed only to persons or authorities (includin

involved in the assessment, collection, or administration 

respect of, or the determination of appeals in relation to, 

oversight of the above. Such persons or authorities shall 

purposes. They may disclose the information in public c

decisions.

3. In no case shall the provisions of the preceding p

on a Contracting State the obligation:

a) to carry out administrative measures at va

practice of that or of the other Contracting State;

b) to supply information that is not obtainab

course of the administration of that or of the other 

c) to supply information that would disclose 

commercial, or professional secret or trade proce

which would be contrary to public policy (ordre p

4. If information is requested by a Contracting State 

other Contracting State shall use its information gatherin

information, even though that other State may not need s

The obligation contained in the preceding sentence is sub

but in no case shall such limitations be construed to perm

supply information because it has no domestic interest in 

5. In no case shall the provisions of paragraph 3 be c

to decline to supply information requested by the other C

information is held by a bank, other financial institution, 

or a fiduciary capacity or because it relates to ownership 
44

such information the tax administration of the requested 

to ask for the disclosure of information and to conduct in

notwithstanding any contrary provisions in its domestic t

6. Notwithstanding paragraph 3, in order to obtain i

framework of this Article, the tax administration of the r

the power to ask for the disclosure of information and to 

outside any time limits required in its domestic tax laws.

7. Penalties provided by the domestic laws of the re

give information relevant for carrying out its domestic ta

to give information provided in paragraphs 5 or 6 was an 

tax laws of the requested State.

8. Where a person refuses to give information reque

Article or fails to give such information within the time r

the requested State, the requested State may bring appro

such person. Such enforcement proceedings include, bu

enforcement proceedings in the case of the United States 

en refere/procedure in kortgeding) in the case of Belgium

give such information under pain of such civil or crimina

the laws of the requested State.

9. If specifically requested by the competent authori

competent authority of the other Contracting State shall p

in the form of depositions of witnesses and authenticated 

(including books, papers, statements, records, accounts, a

10. The requested State shall allow representatives of t

requested State to interview individuals and examine bo

examination shall take place under the conditions and wi

competent authorities of both Contracting States.
45

11. The competent authorities of the Contracting Sta

application of this Article, including agreement to ensur

each of the Contracting States.

12. If the United States terminates paragraph 3 of Ar

paragraph 12 of Article 10, Belgium's obligations pursua

date that paragraph 3 of Article 10 is no longer effective

Article 26

ASSISTANCE IN COLL

1. Each of the Contracting States shall endeavor to 

Contracting State such taxes imposed by that other Cont

exemption or reduced rate of tax granted under this Con

shall not be enjoyed by persons not entitled to such bene

2. In no case shall this Article be construed so as to 

obligation to carry out administrative measures at varian

either Contracting State or which would be contrary to th

sovereignty, security, or public policy.

Article 27

MEMBERS OF DIPLOMATIC MISSION

Nothing in this Convention shall affect the fiscal 

missions or consular posts under the general rules of inte

of special agreements.

Article 28

ENTRY INTO FOR

1. This Convention shall be subject to ratification in 

procedures of each Contracting State. Each Contracting 
46

diplomatic channel, accompanied by an instrument of ra

required procedures.

2. The Convention shall enter into force on the date 

is received, and its provisions shall have effect:

a) in respect of taxes withheld at source, for 

the first day of the second month next following 

enters into force;

b) in respect of other taxes, for taxable perio

January next following the date on which the Con

3. Subparagraph f) of paragraph 5 of Article 21 (Lim

effect until January I, 2011.

4. The Convention between the United States of Am

the Avoidance of Double Taxation and the Prevention of 

on Income, signed at Brussels on July 9, 1970, as modifi

"prior Convention"), shall, in relation to any tax, cease to 

this Convention has effect with respect to such tax in acc

this Article.

5. Notwithstanding the preceding paragraph, where 

the prior Convention would have been entitled to greater 

Convention, the prior Convention shall, at the election of 

in its entirety with respect to such person for a twelve-m

provisions of this Convention would have effect under pa

6. Notwithstanding paragraphs 2 and 5, the provisio

Information and Administrative Assistance) shall have ef

of the Convention, without regard to the taxable period to 

7. Notwithstanding paragraph 2, paragraphs 7 and 8 

Procedure) shall have effect, with respect to. and without 

the particular case relates:
47

a) cases that are under consideration by the 

which this Convention enters into force; and

h) cases that come under such consideration 

and the commencement date for a case described in subp

the date on which this Convention enters into force.

Article 29

TERMINATIO

This Convention shall remain in force until term

Contracting State may terminate the Convention at any t

which this Convention enters into force by giving notice 

State through diplomatic channels. In such event, the Co

a) in respect of taxes withheld at source, for 

expiration of the 6-month period beginning on th

was given; and

b) in respect of other taxes, for taxable perio

of the 6-month period beginning on the date on w

IN WITNESS WHEREOF, the undersigned, bein

respective Governments, have signed this Convention.

DONE at Brussels, in duplicate, in the English la

November, 2006.

FOR THE GOVERNMENT OF

'THE UNITED STATES OF AMERICA:

FOR 

THE 
PROTOCOL

At the signing of the Convention between the G

America and the Government of the Kingdom of Belgiu

Taxation and the Prevention of Fiscal Evasion with Resp

referred to as "the Convention"), the Government of the 

Government of the Kingdom of Belgium have agreed o

Protocol shall form an integral part of the Convention.

1. In reference to Article 7 (Business Profits)

It is understood that the business profits to be att

shall include only the profits derived from the assets use

performed by the permanent establishment. The princip

Guidelines will apply for purposes of determining the pr

establishment, taking into account the different economi

entity. Accordingly, any of the methods described there

determining an arm's length result may be used to determ

establishment so long as those methods are applied in ac

particular, in determining the amount of attributable pro

be treated as having the same amount of capital that it w

were a distinct and separate enterprise engaged in the sa

to financial institutions other than insurance companies, 

amount of capital to be attributed to a permanent establi

total equity between its various offices on the basis of th

institution's risk-weighted assets attributable to each of 

company, there shall be attributed to a permanent establi

through the permanent establishment, but that portion of 

investment income from reserves and surplus that suppo

establishment.

In reference to Article 14 (Income from Employm

With respect to paragraphs 1 and 2 of Article 14 

remuneration is derived by a resident of one of the States 

employment is exercised in the place where the employe

performing the activities for which the remuneration is p

payer, the place in which the contract of employment wa

the place or time of payment, or the place where the resu
2

3. In reference to Article 15 (Directors' Fees)

a) Article 15 (Directors' Fees) also shall ap

"gerant"/"zaakvoerder" of a company, other tha

capacity as such.

b) i) Remuneration derived by a perso

company which is a resident of a Contra

day-to-day functions of a managerial or 

nature shall be taxable in accordance wi

from Employment), and not Article 15; 

Belgian company, Article 14 shall be ap

remuneration derived by an employee in 

references to the "employer" were refere

ii) Remuneration received by a resi

his day-to-day activity as a partner of a 

other than a company with share capital

provisions of Article 14, as if such remu

an employee in respect of an employme

were references to the company.

iii) Article 7 (Business Profits), and 

partner's distributive share of the income 

transparent, such as a U.S. partnership.

4. In reference to Article 17 (Pensions, Social Secu

Child Support)

The term "similar legislation" is intended to refe

Railroad Retirement benefits.

5. In reference to paragraph 1 of Article 24 (Mutua

The term "first notification of the action resultin

provisions of the Convention" shall mean:

a) in the case of Belgium, the date on whic

assessment or supplementary assessment is sent 

taxation provided for in such assessment or supp

provisions of the Convention; and
3

b) in the case of the United States, the date 

of proposed adjustment or of assessment, which

6. In reference to paragraphs 7 and 8 of Article 2

In respect of any case where the competent auth

unable to reach an agreement under Article 24 regardin

binding arbitration shall be used to determine such app

agree that the particular case is not suitable for determ

proceeding (the Proceeding) under paragraph 7 of Arti

and procedures will apply.

a) The Proceeding will be conducted in the 

subject to the requirements of, paragraphs 7 and 

and procedures, as modified or supplemented b

agreed upon by the competent authorities pursu

b) The determination reached by an arbitra

be limited to a determination regarding the amo

reportable to the Contracting States.

c) Notwithstanding the initiation of the Pro

may reach a mutual agreement to resolve a case 

Correspondingly, a concerned person may withd

authorities to engage in the Mutual Agreement P

the Proceeding) at any time.

d) The requirements of subparagraph d) of 

met when the competent authorities have each re

person a statement agreeing that the concerned p

the concerned person's behalf will not disclose t

information received during the course of the Pr

State or the arbitration hoard, other than the dete

concerned person that has the legal authority to b

person(s) on this matter may do so in a compreh

e) Each Contracting State will have 60 days 

Proceeding begins to send a written communicat

appointing one member of the arbitration board. 

which the second such communication is sent, th

Contracting States will appoint a third member, 

board. If either Contracting State fails to appoin

appointed by the Contracting States fail to agree 

manner prescribed by this paragraph, the remaini
4

by the highest-ranking member of the Secretaria

Administration of the Organisation for Econom

(OECD) who is not a citizen of either Contracti

Contracting States within 60 days of the date of 

authorities will develop a non-exclusive list of i

international tax matters who may potentially se

any case, the Chair shall not be a citizen of eithe

f) The arbitration board may adopt any pro

of its business, provided that the procedures are 

provision of Article 24 or the Protocol to the Co

g) Each of the Contracting States will be pe

of the appointment of the Chair of the arbitration 

describing the proposed disposition of the speci

expense or taxation at issue in the case, and a su

consideration by the arbitration board. Copies o

supporting Position Paper shall be provided by t

State on the date on which the later of the submi

In the event that only one Contracting State subm

the allotted time, then that Proposed Resolution 

determination of the board in that case and the P

Each of the Contracting States may, if it so desi

the board within 120 days of the appointment of 

raised by the Proposed Resolution or Position P

Contracting State. Additional information may b

board only at its request, and copies of the board

State's response shall be provided to the other C

which the request or the response is submitted. E

as those identified in subparagraphs I), n) and o) 

the Contracting States to the arbitration board, an

only through written communications between th

authorities and the Chair of the board.

h) The arbitration board will deliver a deter

Contracting States within six months of the appo

will adopt as its determination one of the Propos

Contracting States.

i) In making its determination, the arbitratio

and in descending order of priority:

i) the provisions of the Convention;
5

ii) any agreed commentaries or expl

concerning the Convention;

iii) the laws of the Contracting States 

with each other; and

iv) any OECD Commentary, Guideli

analogous portions of the OECD Model T

j) The determination of the arbitration boar

binding on the Contracting States. The determin

rationale. It will have no precedential value.

k) As provided in subparagraph e) of paragr

determination of an arbitration board shall const

agreement under Article 24. Each concerned per

receiving the determination of the board from th

the case was first presented, advise that compete

concerned person accepts the determination of t

in litigation, each concerned person who is a par

advise, within the same time frame, the relevant 

determination of the board as the resolution by m

the consideration of the court the issues resolved 

concerned person fails to so advise the relevant c

within this time frame, the determination of the b

been accepted in that case. Where the determina

case may not subsequently be the subject of a Pro

I) Any meeting(s) of the arbitration board s

the Contracting State whose competent authority 

proceedings in the case.

m) The treatment of any associated interest o

applicable domestic law of the Contracting State(

n) No information relating to the Proceeding 

determination) may be disclosed by the members 

staffs or by either competent authority, except as 

the domestic laws of the Contracting States. In a

the course of, or relating to, the Proceeding shall 

exchanged between the Contracting States. All m

and their staffs must agree in statements sent to e

confirmation of their appointment to the arbitrati

subject to the confidentiality and nondisclosure p

(Exchange of Information and Administrative As

the applicable domestic laws of the Contracting 
6

provisions conflict, the most restrictive conditio

o) The fees and expenses will be borne equ

general, the fees of members of the arbitration b

amount of $2,000 (two thousand United States d

amount in euro, subject to modification by the c

the expenses of members of the arbitration board 

the International Centre for Settlement of Invest

of Fees for arbitrators (as in effect on the date on 

proceedings begin), subject to modification by t

language translation will also be borne equally b

facilities, related resources, financial manageme

administrative coordination of the Proceeding w

Contracting State whose competent authority ini

proceedings in the case. Any other costs shall be 

incurs them.

I)) For purposes of paragraphs 7 and 8 of Ar

competent authority will confirm in writing to th

to the concerned person(s) the date of its receipt 

undertake substantive consideration for a mutua

will be:

i) in the United States, the informat

United States competent authority under 

4.05 (or any applicable successor provisi

as a request for an Advance Pricing Agre

submitted to the Internal Revenue Servic

section 4 (or any applicable successor pro

ii) in Belgium, any information that 

commentaries published by the Federal P

However, this information shall not be considere

authorities have received copies of all materials s

State by the concerned person(s) in connection w

procedure.

q) The competent authorities of the Contrac

supplement the above rules and procedures as ne

implement the intent of paragraph 7 of Article 24 
7

7. In reference to Article 25 (Exchange of Informa

Banking records will be exchanged only upon r

both a specific taxpayer and a specific bank or financia

the requested State may decline to obtain any informati

IN WITNESS WHEREOF, the undersigned, be

respective Governments, have signed this Protocol.

DONE at Brussels in duplicate, in the English la

November, 2006.

FOR THE GOVERNMENT OF

THE UNITED STATES OF AMERICA:

FO

TH