A Protocol to the Double Taxation Convention between the UK and Belgium (PDF 76K) was signed in Paris on 24 June 2009 by the Financial Secretary to the Treasury, Stephen Timms, and the Belgian Deputy Prime Minister and Minister of Finance, Didier Reynders.
The text of the Protocol will be presented to Parliament for approval and the Protocol will enter into force once both countries have completed their legislative procedures. The provisions of the Protocol will then take effect from the next calendar year.
The Protocol updates the exchange of information article of the convention to bring it into line with current OECD standards and practice. It also introduces a provision into the article dealing with mutual agreement which will provide binding arbitration in the event of a protracted dispute between the two tax authorities.
In addition to several other technical revisions, the Protocol provides for a new dividends article that grants zero withholding tax to direct investors and pension funds; and, a new interest article that removes withholding tax on all interest paid between enterprises.
