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Belgium-USA Double Tax Treaty

Belgium-USA Double Tax Treaty

A Convention between Belgium and the United States

The Convention between the governments of Belgium and the United States of America was signed in order to prevent double taxation and fiscal evasion. It concerns individuals who are residents of one or both countries and is beneficial for those who perform business activities in both countries and receive certain types of income.

Our Belgian law firm can provide you with personalized counselling regarding taxation if you are an American investor in Belgium.

The main scope of the treaty between Belgium and USA

The general purpose of the Convention is to provide relief from double taxation. In case of Belgium, the provisions apply as follows: when a Belgian resident in the United States derives income (other than dividends, interest and royalties) that is taxed in the U.S., Belgium shall not apply taxes on the same income.

Dividends paid by a company that is incorporated in Belgium or the United States to a resident company of the other state can be taxed in that other state. The dividends can also be taxed in the Contracting State in which the company is a resident but there are certain limitations as per the amount of the tax charged. The experts at our Belgian law firm can give you more details about the taxation of dividends, royalties, interest and capital gains as described in the double tax treaty between Belgium and the United States.

The taxes covered by the US-Belgium treaty

The Convention applies on taxes on income imposed by the Contracting States, irrespective of the manner in which they are levied. In case of Belgium, the taxes are the following:

– the personal income tax;

– the corporate income tax;

– the income tax on legal entities;

– the income tax on non-residents.

For the United States the taxes are the Federal income taxes imposed by the Internal Revenue Code (without the social security taxes) and the Federal excise taxes imposed with respect to private foundations.

The double tax treaty also applies to similar or identical taxes imposed in addition to or in place of the existing one after the date the Convention was signed.

Our attorneys in Belgium can help you understand the taxation system in the country if you are a foreign investor doing business here. You can contact our Belgian law firm for additional information.