Convention signed at Brussels July 9, 1970; 　　Ratification advised by the Senate of the United Stages of America November 25, 1970; 　　Ratified by the President of the United States of America December 8, 1970; Ratified by Belgium August 14, 1972; Ratifications exchanged at Washington September 13, 1972; Proclaimed by the President of the United States of America September 25, 1972; Entered into Force October 13, 1972. GENERAL EFFECTIVE DATE UNDER ARTICLE 30: 1 JANUARY 1971 TABLE OF ARTICLES Article 1---------------------------------Personal Scope Article 2---------------------------------Taxes Covered Article 3---------------------------------General Definitions Article 4---------------------------------Fiscal Domicile Article 5---------------------------------Permanent Establishment Article 6---------------------------------Income from Real Property Article 7---------------------------------Business Profits Article 8---------------------------------Shipping and Air Transport Article 9---------------------------------Associated Enterprises Article 10-------------------------------Dividends Article 11-------------------------------Interest Article 12-------------------------------Royalties Article 13-------------------------------Capital Gains Article 14-------------------------------Independent Personal Services Article 15-------------------------------Dependent Personal Services Article 16-------------------------------Director's Fees Article 17-------------------------------Social Security Payments Article 18-------------------------------Private Pensions and Annuities Article 19-------------------------------Governmental Functions Article 20-------------------------------Teachers Article 21-------------------------------Students and Trainees Article 22-------------------------------Income Not Expressly Mentioned Article 23-------------------------------Relief from Double Taxation Article 24-------------------------------Nondiscrimination Article 25-------------------------------Mutual Agreement Procedure Article 26-------------------------------Exchange of Information Article 27-------------------------------Assistance in Collection Article 28-------------------------------Miscellaneous Article 29-------------------------------Extension to Territories Article 30-------------------------------Entry into Force Article 31-------------------------------Termination Letter of Submittal--------------------of 27 July, 1970 Letter of Transmittal -----------------of 13 August, 1970 Protocol-------------------------------- of 31 December, 1987 Notes of Exchange (Protocol)-------of 31 December, 1987 Letter of Submittal (Protocol)-------of 2 February, 1988 Letter of Transmittal (Protocol)-----of 29 February, 1988 The "Saving Clause"------------------Paragraph 1 of Article 23 TAX CONVENTION WITH BELGIUM MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING THE CONVENTION BETWEEN THE UNITED STATES OF AMERICA AND THE KINGDOM OF BELGIUM FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME, SIGNED AT BRUSSELS ON JULY 9, 1970 LETTER OF SUBMITTAL 　　　　　　　　　　　　　　　　　　　　　　　　　　　DEPARTMENT OF STATE, 　　　　　　　　　　　　　　　　　　　　　　　　Washington, July 27, 1970. The PRESIDENT, The White House. 　　The PRESIDENT: I have the honor to submit to you, with a view to its transmission to the Senate for advice and consent to ratification, a convention between the United States of America and the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, signed at Brussels on July 9,1970. 　　The convention was formulated as a result of technical discussions between officials of this Government and officials of the Belgian Government. The Department of State and the Department of the Treasury cooperated in its negotiation. It has the approval of both　Departments. 　　This convention, upon its coming into effect, would terminate the convention of October 28, 1948, relating to the avoidance of double taxation with respect to taxes on income as modified by supplementary conventions of September 9, 1952, and August 22, 1957, and by the Protocol of May 21, 1965 (4 UST 1647; 4 UST 1672; 10 UST 1358; 17 UST 1142; 18 UST 3011; Treaties and Other International Acts Series 2833, 4280, 6073, and 6394). 　　Negotiation of the new convention entailed a comprehensive review of the existing convention, as modified, each provision being thoroughly considered and, as necessary, rewritten to reflect changes in the internal tax laws of the two countries and to take into account other recent tax treaties concluded by the two countries. The new convention also follows, as closely as policy and technical considerations permit, the model draft convention published in 1963 by the Organization for Economic Cooperation and Development. The substance of the new convention conforms generally to that of recent revisions of United States income-tax conventions with France, the Federal Republic of Germany, and the United Kingdom. 　　In accordance with the pattern of comprehensive income-tax conventions of the United States, the new convention with Belgium contains provisions regarding the tax treatment of income from real property (art. 6), business profits (art.7), shipping and air transport (art. 8), associated enterprises (art. 9), dividends (art. 10), interest (art. 11), royalties (art. 12), capital gains (art. 13), independent and dependent personal services (arts. 14 and 15), director's fees (art. 16), social security payments (art. 17), private pensions and annuities (art. 18), government salaries and similar remuneration (art. 19), teaching or research (art. 20), and student and trainee gifts, grants, allowances, awards, and certain personal services (art. 21). Income not expressly mentioned is covered by Article 22. 　　The convention retains a maximum 15 percent rate of tax at source on dividends, as in the existing convention. The present treaty rate at source of 15 percent on interest is maintained in the general case, but drops under the new convention to zero on interest arising from commercial credit or on interbank transactions. Royalties continue to be exempt from tax at source as under the existing convention. 　　Article 1 of the new convention declares that the convention is generally applicable to persons who reside in one or both of the countries. Article 2 describes the taxes to which the convention relates in the case of the United States, the Federal income taxes imposed by the Internal Revenue Code; in the case of Belgium, a variety of income taxes and also prepayments, additional prepayments, and surcharges. 　　Article 3 contains general definitions of various terms found in the convention. Article 4 defines "resident" as applied to the determination of fiscal domicile in the two countries. Article 5 contains the definition of "permanent establishment". Under the convention business profits derived by a resident of one of the contracting states may be taxed by the other contracting state only if the resident maintains a "permanent establishment" in that other state to which the profits are attributable. 　　The credit provisions and related provisions dealing with relief from double taxation are set forth in Article 23. Article 24 contains the provisions regarding nondiscrimination (the so-called nationaltreatment provisions). 　　Articles 25-28 contain provisions relating to cooperation between the competent authorities of the two countries in effectuating the purposes of the convention. Article 28 also contains the provision that nothing in the convention shall affect the fiscal privileges of diplomatic and consular officers under the general rules of international law or provisions of special agreements. 　　Article 29 provides for an exchange-of-notes procedure whereby the convention, in whole or in part, may be extended to all or any of the areas for whose international relations the United States is responsible and which imposes taxes substantially similar in character to those which are covered by the convention. This applies only to those areas to which the convention is not otherwise applicable pursuant to the definition of "United States" in Article 3 (1) (a). 　　It is provided in Article 30 that the convention will enter into force one month after the date of exchange of instruments of ratification and that its provisions shall have effect for the first time with respect to income of calendar years or taxable years beginning (or in the case of taxes payable at the source, payments made) on or after January 1, 1971. Article 30 provides also that, as between the United States and Belgium, the 1948 convention, as modified and supplemented, shall terminate and cease to have effect in respect of income to which the new convention applies. 　　Pursuant to Article 31, the convention would remain in force until terminated by one of the parties. Either party has the right to terminate the convention at any time after five years from the date of its entry into force by giving a six-month prior written notice of termination. A special provision is included regarding Article 17 (social security payments) so that it may be terminated by either party at any time after the convention enters into force. Respectfully submitted, WILLIAM P. ROGERS. LETTER OF TRANSMITTAL THE WHITE HOUSE, August13, 1970. To the Senate of the United States: 　　With a view to receiving the advice and consent of the Senate to ratification, I transmit herewith the convention between the United States of America and the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, signed at Brussels on July 9, 1970. 　　For the information of the Senate, I transmit also the report of the Secretary of State with respect to the convention. 　　The existing income-tax convention of October 28, 1948 with Belgium. as modified by supplementary conventions of September 9, 1952, and August 22, 1957, and by the protocol of May 21, 1965, would be terminated and replaced by the new convention upon the coming into force of the latter. 　　In revising the existing convention, as modified, it has been possible to incorporate in a single comprehensive convention provisions which reflect changes in the internal tax laws of the United States and Belgium. The revised convention, while following in general the pattern of bilateral income-tax conventions now in force between the United States and a number of other countries, reflect in particular certain tax treaty policies established in recent revisions of such conventions with France, the Federal Republic of Germany, and the United Kingdom. Moreover, the revised provision reflect, to the extent that policy and technical considerations permit, the model income-tax convention published by the Organization for Economic Cooperation and Development. 　　As in the cases of other income-tax conventions of the United States, provisions in the new convention with Belgium that are of special interest include those which relate to commercial and industrial profits, dividends, interest, royalties, and capital gains. The revised provisions regarding social security payments, governmental salaries and similar remuneration, income from teaching and research and other personal services, and exemptions to which students and trainees are entitled should also be of particular interest. 　　The maximum 15 percent rate of tax at source on dividends, as provided in the existing convention, is retained in the new convention. The 15 percent rate of tax at source on interest, as provided in the existng convention, is retained as a general rule in the new convention, but interest arising from commercial credit or on interbank transactions is exempted from tax. The provision of the existing convention granting an exemption from tax in the source country to royalties derived from sources within one of the countries by a resident of the other country is retained in the new convention. 　　I recommend that the Senate give early and favorable consideration to the convention. RICHARD NIXON . 　 BY THE PRESIDENT OF THE UNITED STATES OF AMERICA A PROCLAMATION CONSIDERING THAT: 　　The Convention between the United States of America and the Kingdom of Belgium for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income was signed at Brussels on July 9, 1970, the text of which Convention, in the English, French, and Dutch languages, is hereto annexed; 　　The Senate of the United States of America by its resolution of November 25, 1970, two-thirds of the Senators present concurring therein, gave its advice and consent to the ratification of the Convention; 　　The Convention was duly ratified by the President of the United States of America on December 8, 1970, in pursuance of the advice and consent of the Senate, and was duly ratified on the part of the Kingdom of Belgium; 　　It is provided in Article 30 of the Convention that the Convention shall enter into force one month after the date of the exchange of instruments of ratification; 　　The instruments of ratification of the Convention were duly exchanged at Washington on September 13, 1972, and accordingly the Convention enters into force on October 13, 1972; 　　NOW, THEREFORE, I, Richard Nixon, President of the United States of America, proclaim and make public the Convention of July 9,1970 to the end that it shall be observed and fulfilled with good faith by the United States of America and by the citizens of the United States of America and all other persons subject to the jurisdiction thereof. 　　IN TESTIMONY WHEREOF, have signed this proclamation and caused the Seal of the United States of America to be affixed. 　　DONE at the city of Washington this twenty-fifth day of September in the year of our Lord one thousand nine hundred seventy-two and of the Independence of the United States of America the one hundred ninety-seventh. RICHARD NIXON By the President: WILLIAM P ROGERS Secretary of State