Belgium-UK Double Tax Treaty

 

The Belgium-UK Double Taxation Convention was signed in 1987 and was amended in 2012 by a Protocol. The treaty was signed in order to prevent double taxation on income and capital gains and at the same time help prevent evasion.

 

Belgian-UK investors or UK-Belgian investors benefit from this Convention because the income they produce is only being taxed once. Belgium has also signed double tax treaties with other countries and the experts at our Belgian law firm can help you know more about these treaties.

 

 

The Convention for the avoidance of double taxation targets certain taxes, both in Belgium and in the United Kingdom. In Belgium, the taxes to which the treaty applies are the following:

- the individual income tax;

- the corporate income tax;

- the income tax on legal entities;

- the income tax on non-residents.

 

In the UK, the Convention applies to the same taxes, namely:

- the income tax;

- the corporate tax;

- the capital gains tax;

- the petroleum revenue tax.

 

In Belgium the treaty also applies to prepayments and the surcharges on the taxes and payments. The Convention also applies to any taxes that may be levied in place of or in addition to the ones listed above. Belgium has the obligation to announce the UK if any changes occur in its taxation law and the United Kingdom is obliged to do the same.

 

 

The Convention also sets forth the taxation method for dividends, interest, royalties and capital gains. Other forms of income that are taxed according to the treaty are independent personal services, dependent personal services, director’s fees, pensions, government services, offshore activities and other types of income.

 

If you have a branch or a subsidiary in Belgium and want to know how the treaty influences your activities, our attorneys in Belgium can help you. You can also contact us if you are a foreign investor in Belgium and need to know more about the specific laws for investments.