Double Taxation Treaties In Belgium: How Do They Work And When Do They Apply?

• Published date: 24 May 2022
• Subject Matter: Tax, Tax Treaties, Income Tax, Tax Authorities
• Law Firm: Innovation Park
• Author: Ms Julia Vorontsova

The tax authorities are always looking for their piece of your tax pie. But things get complicated when your income crosses borders. Fortunately, Belgium has double taxation treaties (DTTs) with over 150 countries.

But how do they work, and when do they apply? Well, your (or your company's) tax residency status plays a major role.

Here's what you need to know about double taxation treaties in Belgium.

What is a Double Taxation Treaty?

A double taxation treaty (DTT) is an agreement signed between two contracting countries to prevent double taxation on the same income of an individual or company.

It's also commonly referred to as a:

• Double taxation agreement (DTA)
• Double taxation convention (DTC)
• Double taxation avoidance agreement (DTAA)

In a DTT, the two countries agree on which of them can tax corporate income, dividends, interest, rental income, salaries, pensions, royalties, and more. A DTT also has provisions for tax relief when double taxation arises.

While double taxation treaties in Belgium are modeled after the OECD's Model Taxation Convention in Income and Capital, none of them is exactly the same.

Each treaty has unique regulations on taxing income and capital of individuals and legal entities.

Belgium's conventions for the avoidance of double taxation serve other purposes, too. They help limit tax evasion, stop tax discrimination, and encourage foreign investment. They also allow for information interchanges between countries.

Which Countries Have Double Taxation Treaties With Belgium?

Belgium has double taxation treaties with countries across the globe. Here's a quick breakdown by geographic location according to the Belgian MyMinfin (Tax-on-Web) website:

EU Countries

The following European Union member states have double taxation avoidance agreements with Belgium:

• Austria
• Bulgaria
• Czech Republic
• Cyprus
• Germany
• Denmark
• Estonia
• Finland
• Greece
• France
• Hungary
• Ireland
• Italy
• Latvia
• Lithuania
• Luxembourg,
• Malta
• The Netherlands
• Poland
• Portugal
• Romania
• The United Kingdom
• Slovenia
• Slovakia
• Sweden
• Spain

Non-EU Countries

Belgium has double taxation agreements with these non-EU countries:

• Albania
• Belarus
• Bosnia-Herzegovina
• Croatia
• Georgia
• Iceland
• Kosovo
• Macedonia
• Moldova
• Norway
• Serbia
• Montenegro
• The Republic of San Marino
• Switzerland
• Ukraine

African Countries

Belgium has double taxation conventions with the following countries in Africa:

• Algeria
• Bahrain
• Egypt
• Gabon
• Ghana
• Ivory Coast
• Mauritius
• Morocco
• Nigeria
• The Republic of the Congo
• Rwanda
• Senegal
• Seychelles
• South Africa
• Tunisia

Asian and Eurasian Countries

These countries in Asia have double taxation avoidance agreements with Belgium:

• Armenia
• Azerbaijan
• Bangladesh
• China
• Hong Kong
• India
• Israel
• Indonesia
• Japan
• Kazakhstan
• Kyrgyzstan
• Kuwait
• Malaysia
• Mongolia
• Pakistan
• The Philippines
• Taiwan
• Tajikistan
• Thailand
• Turkey
• Turkmenistan
• Russia
• Singapore
• South Korea
• Sri Lanka
• The United Arab Emirates
• Uzbekistan
• Vietnam

South American Countries

The following South American countries have double taxation...