Law Approving The Following International Acts: 1 ° The Convention Between The Kingdom Of Belgium And The Kingdom Of Bahrain For The Avoidance Of Double Taxation And Fiscal Evasion With Respect To Taxes On Income And On Capital, F

Original Language Title: Loi portant assentiment aux actes internationaux suivants: 1° la Convention entre le Royaume de Belgique et le Royaume de Bahreïn tendant à éviter la double imposition et à prévenir l'évasion fiscale en matière d'impôts sur le revenu et sur la fortune, f

Read the untranslated law here: http://www.ejustice.just.fgov.be/cgi/article_body.pl?numac=2014015243&caller=list&article_lang=F&row_id=100&numero=165&pub_date=2015-12-23&dt=LOI&language=fr&fr=f&choix1=ET&choix2=ET&fromtab=+moftxt&trier=publication&sql=dt+=+'LOI'&tri=pd+AS+RANK+

Posted the: 2015-12-23 Numac: 2014015243 Foreign Affairs, external trade and development COOPERATION FEDERAL PUBLIC SERVICE June 10, 2014. -Law on consent in the following international acts: 1 ° the Convention between the Kingdom of Belgium and the Kingdom of Bahrain for the avoidance of double taxation and prevent fiscal evasion with respect to taxes on the income and on fortune, made in Manama on November 4, 2007, and (2) the Protocol, made in Manama on November 23, 2009, amending the Convention between the Kingdom of Belgium and the Kingdom of Bahrain for the avoidance of double taxation and to fiscal evasion with respect to taxes on income and on capital, and adapting the Belgian tax legislation to certain provisions of those international acts (1) (2) (3) PHILIPPE, King of the Belgians, to all, present and future, hi.
The Chambers have adopted and we endorse the following: Article 1. This Act regulates a matter referred to in article 77 of the Constitution.
S.
2. the following international acts will release their full and complete effect: 1 ° the Convention between the Kingdom of Belgium and the Kingdom of Bahrain for the avoidance of double taxation and fiscal evasion with respect to taxes on income and on capital, made in Manama November 4, 2007 (hereinafter "the Convention");
2 ° the Protocol, made in Manama on November 23, 2009, amending the Convention between the Kingdom of Belgium and the Kingdom of Bahrain aimed to avoid double taxation and prevent fiscal evasion with respect to taxes on income and on capital, made in Manama on November 4, 2007 (hereinafter "the Protocol").
S. 3 § 1. For the application by Belgium of article 28 of the Convention, there are particular be regarded, unless evidence to the contrary, that the main purpose or one of the main objectives of any person involved in the creation or the assignment of a right or a claim in respect of which claims revenues or royalties from Belgian source are paid to a company which is a resident of the Kingdom of Bahrain is to get the benefits of articles 11 or 12 of the Convention through the creation or the assignment of this right or this debt, when the following three conditions are met simultaneously:-one or more residents of the Belgium hold directly or indirectly more than 50% of the capital of this company.
— the nominal or effective tax Bahraini whereby revenues for debt or paid charges are submitted in the head of the company is less than 15%;
-the company does not actively in the Kingdom of Bahrain an effective commercial or industrial activity or, if it actively pursues such an activity, the exemption or reduction of tax in Belgium is not relative to claims income or royalties from claims or rights including the establishment or the transfer is necessitated by this activity.
§ 2. A corporation is not considered as engaged actively in the Kingdom of Bahrain an effective commercial or industrial activity when this company is:-an investment company;
-a company (other than a Bank) financing;
-a company whose activity is exclusively or principally in the provision of financial services for the benefit of companies that form a group directly or indirectly with the company;
-a cash society; or - a company that owns a portfolio investment or copyright, a patent, a trademark, a drawing, a model, a plan, a formula or a secret process totalling more than a third of its assets when such detention is not part of the active of an industrial or commercial activity effective exercise.
Promulgate this Act, order that it self under the seal of the State and published by le Moniteur.
Given to Brussels, June 10, 2014.
PHILIPPE by the King: the Deputy Prime Minister and Minister of Foreign Affairs, D. REYNDERS the Minister of finance, K. GARG sealed with the seal of the State: the Minister of Justice, Ms. A. TURTELBOOM _ Notes (1) Senate (www.senate.be): Documents: 5-2732 - annals of the Senate: 27/03/2014 House of representatives (www.lachambre.be): Documents: 53-3508 - full report: 2014-04-23 (2) see the Decree of the Flemish community / the Flemish Region's June 7, 2013 (Moniteur belge of 9 July 2013) the Decree of the French community of 11 April 2014 (Moniteur belge of 26 May 2014), the Decree of the German-speaking community of 24 November 2014 (Moniteur belge of 18 December 2014, Ed. 2), the Decree of the Walloon Region from April 28, 2014 (Moniteur belge of 27 May 2014) and the order of the Brussels-Capital Region from March 27, 2014 (Moniteur belge of 12 may 2014).
(3) entry into force 11 December 2014.

CONVENTION between the Kingdom of Belgium and the Kingdom of Bahrain for A avoid the DOUBLE taxation and A prevent the escape tax for taxes on income and on the FORTUNE the Government of Kingdom of Belgium and the Government of Kingdom of Bahrain desiring to conclude a Convention for the avoidance of double taxation and to prevent tax fraud and evasion of taxes on income and on capital , Have agreed as follows: chapter I scope of APPLICATION of the CONVENTION Article 1 persons this Convention applies to persons who are residents of a Contracting State or the two Contracting States.
Article 2 taxes covered 1. This Convention shall apply to taxes on income and on capital imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the collection system.
2 are considered as taxes on the income and on the fortune taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of property movable or immovable property, taxes on the total amount of salaries paid by enterprises, as well as taxes on capital gains.
3. the existing taxes to which the Convention shall apply are in particular: has) with respect to Bahrain: the income tax due under the Decree of the Emir (Amiri Decree) No. 22 of 1979 (hereinafter referred to as the 'Bahraini tax');
(b) in relation to the Belgium: (i) natural persons tax;
(ii) the corporation tax;
(iii) the income tax of legal persons;
(iv) the non-resident on Belgian source income tax;
(v) the supplementary crisis contribution;
including the withholding and additional such taxes and withholding taxes, (hereinafter referred to as "Belgian tax").
4. the Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention and additional to existing taxes or place. The competent authorities of the Contracting States shall communicate significant changes to their tax legislation.
Chapter II DEFINITIONS Article 3 General Definitions 1. For the purposes of this Convention, unless the context otherwise requires: a) (i) the term "Bahrain" means the territory of the Kingdom of Bahrain as well as the maritime zones, the sea-bed and subsoil over which Bahrain has, in accordance with international law, sovereign rights and jurisdiction; and (ii) the term "Belgium" means the Kingdom of Belgium; used in a geographical sense, it means the territory of the Kingdom of Belgium, including the territorial sea and maritime zones and the air space over which, in accordance with international law, the Kingdom of Belgium has sovereign rights or jurisdiction;
(b) the terms «A Contracting State» and «the other Contracting State» mean, as the context, the Belgium or Bahrain;
(c) the term "person" includes natural persons, companies and any other body of persons;
(d) the term "company" means any legal person or any entity which is treated as a legal person in the State Contracting, which it is a resident.
(e) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which the place of effective management is situated in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
(f) the term "competent authority" means: (i) with respect to Bahrain, the Minister of finance or his authorized delegate; and (ii) with regard to the Belgium, the Minister of finance or his authorized delegate;
(g) the term "national", in relation to a Contracting State, means: (i) any individual possessing the nationality or citizenship of that State Contracting; and (ii) any legal person, partnership or association established in accordance with the legislation in force in that State Contracting;
(h) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State.
2. for the purposes of the Convention at any time by a Contracting State, any term or phrase that is not defined has, unless the context requires a different interpretation, the meaning attributed to it, at that time, the law of that State concerning the taxes to which the Convention applies, the meaning attributed to the term

or expression by the tax law of that State prevailing on the meaning attributed to it by the other branches of the law of this State.
Article 4 Resident 1. For the purposes of this Convention, "resident of a Contracting State" means: a) in the case of Bahrain, a natural person who owns the Bahraini nationality and which stayed in Bahrain for a period or periods of a total duration of at least 183 days in the course of the fiscal year, a company or any other body corporate incorporated in Bahrain, or which has its place of management , and also applies to the Kingdom of Bahrain as well as all of its political subdivisions or its local authorities; and (b) in the case of Belgium, any person who, under Belgian law, is liable to tax in Belgium because of his domicile, residence, of its place of management, place of incorporation or any other criterion of a similar nature and applies also to the Kingdom of Belgium as well as all of its political subdivisions or its local authorities. However, this term does not include persons who are subject to tax in Belgium for the income from sources in that State or capital which is located.
2. where, under the provisions of paragraph 1 an individual is a resident of both Contracting States, his status is set as follows: a) this person is considered to be a resident only of the State where it has a permanent home; If it has a permanent home in the two States, it is considered as a resident only of the State with which his personal and economic relations are closer (centre of vital interests);
(b) if the State where he has his centre of vital interests cannot be determined, or if it has a permanent home in any of the States, it is considered to be a resident only of the State where she is staying in usual manner;
(c) if he has habitual abode in both States or if it resides habitually in any of them, it is considered to be a resident only of the State in which it has the nationality;
(d) If this person is a national of both States or it possesses the nationality of any of them, the competent authorities of the Contracting States settle the question by mutual agreement.
3. where, under the provisions of paragraph 1, one person other than an individual is a resident of both Contracting States, it is considered to be a resident only of the State in which its place of effective management is situated.
Article 5 establishing stable 1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which a company carries on all or part of its activity.
2. the term "permanent establishment" includes especially: a) a place of management, b) a branch, c) desks, d) a plant, e) workshop, f) a mine, a well of oil or gas, a quarry or any other place of extraction of natural resources, g) refinery, h) a point of sale, and i) a warehouse, in the case of a person who puts storage facilities at the disposal of others.
3. a building site or construction or installation constitutes a permanent establishment only if its duration exceeds twelve months.
4. Notwithstanding the preceding provisions of this article, considering that it has not 'permanent establishment' if: has) it is made use of facilities for the sole purpose of storage, exposure or delivery of goods belonging to the enterprise;
(b) goods belonging to the company are stored for the sole purpose of storage, exposure or delivery;
(c) goods belonging to the company are stored for the sole purpose of processing by another enterprise;
(d) a fixed place of business is used solely to purchase merchandise or to gather information, for the enterprise;
(e) a fixed place of business is used for the sole purpose to exercise, for the enterprise, any other activity of a preparatory or auxiliary character;
((f) a fixed place of business is used for the sole purpose of fiscal year cumulative activities mentioned in paragraph a) to (e)), provided that the activity of the fixed place of business resulting from this combination set keeps a preparatory or auxiliary character.
5. Notwithstanding the provisions of paragraphs 1 and 2, when a person-an agent of an independent status to which paragraph 6 applies acts on behalf of an enterprise and in a State Contracting powers exercised by it are usually to conclude contracts on behalf of the company, this company is considered as having a permanent establishment in that State for all the activities that this person performs for the company unless the activities of such person are limited to those mentioned in paragraph 4 and which, if they were exercised through a fixed place of business, would not consider this facility as a permanent establishment under the provisions of this paragraph.
6. an enterprise shall not be considered as having a permanent establishment in a Contracting State merely because it carries its activity through a broker, general Commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary activity course.
7. the fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other State Contracting or which carries on business (whether through an establishment stable or not) does not, in itself, to make one any of these companies a permanent establishment of the other.
Chapter III taxation of income Article 6 income real estate 1. Income derived by a resident of a Contracting State from immovable property (including income from agricultural or forestry) situated in the other Contracting State may be taxed in that other State.
2. the term "immovable property" has the meaning given to it by the law of the Contracting State where the property in question is situated. The term includes in any case accessories, livestock dead or alive's farms and forestry, rights to which the provisions of private law concerning land ownership, usufruct of real property and rights to variable or fixed payments for the exploitation or concession of exploitation of deposits minerals, sources and other natural resources; ships, boats and aircraft are not considered to be real property.
3. the provisions of paragraph 1 shall apply to income derived from the use or the direct enjoyment of the rental or leasing, as well as any other form of immovable property.
4. the provisions of paragraphs 1 and 3 shall apply also to income from real property of an enterprise and to income from real property used for the pursuit of an independent profession.
Article 7 1 corporate profits. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the company operates in the other State Contracting through a permanent establishment situated therein. If the enterprise carries on business in such a way, the profits of the enterprise are taxable in the other State but only insofar as they are attributable to that permanent establishment.
2. subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other State Contracting through a permanent establishment situated, it is charged, in each Contracting State, to that permanent establishment profits that he could achieve if it had been a separate business operating identical or similar under conditions identical or similar and acting independently.
3. in determining the profits of a permanent establishment, are allowed as deductions expenses incurred for the purposes of establishment, including Executive and general expenses so incurred administration, either in the State where the permanent establishment is situated or elsewhere.
4. If it has been customary in a Contracting State to determine the profits attributable to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed according to the distribution in use; the adopted allocation method should be such that the result is consistent with the principles contained in this article.
5. no benefit is attributed to a permanent establishment that he simply bought goods for the company.
6. for the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment are determined each year by the same method, unless there is good and sufficient contrary reasons.
7. where profits include items of income which are dealt with separately in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.
Article 8 shipping and air transport

1. profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State where the place of effective management of the enterprise is situated.
2. for the purposes of this article, profits from the operation of ships or aircraft in international traffic include: a) profits from the rental of ships or aircraft used for international transport, all armed and equipped;
b) profits from the rental bareboat vessels or aircraft if this rental activity is an ancillary activity for the undertaking of international transport;
(c) profits from the rental of containers if the rental activity is an ancillary activity for the undertaking international transport).
3. If the seat of effective management of a shipping enterprise is aboard a ship, this seat is regarded as located in the Contracting State where the homeport of the vessel, or the absence of home port, in the Contracting State of which the operator of the ship is a resident.
4. the provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint operation or an international operating agency.
Article 9 associated enterprises 1. When a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or that b) the same persons participate directly or indirectly to the direction, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and that, in the other case the two companies are, in their commercial or financial, relationships bound by agreed or imposed conditions which differ from those which would be agreed between independent companies, the benefits that without these conditions, would have been made by one of the companies but could not be in fact because of these conditions, can be included in the profits of that enterprise and taxed accordingly.
2. where a Contracting State includes in the profits of an enterprise of that State - and imposes accordingly - profits on which an enterprise of the other Contracting State has been imposed in that other State and the profits so included are profits which have been made by the company of the first State if the conditions agreed between the two companies had been those which would have been agreed between independent enterprises the other State conducts adjustment it considers appropriate to the amount of the tax which is received on these profits. To determine this adjustment, account shall be taken of the other provisions of this Convention and, if necessary, the competent authorities of the Contracting States shall consult each other.
Article 10 dividends 1.
Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the dividends.
Notwithstanding the preceding provisions of this paragraph, dividends are not taxable in the Contracting State of which the company paying the dividends is a resident if the beneficial owner of the dividends is a company which is a resident of the other Contracting State and who, at the time of the payment of the dividend, holds, for an uninterrupted period of at least 12 months, shares representing directly at least 10 per cent of the capital of the company paying the dividends.
This paragraph does not affect the taxation of the company in respect of the benefits that are used for the payment of dividends.
3. the term "dividends" as used in this article means income from shares, shares or dividend certificates, mining, founder shares or other rights with the exception of claims, as well as income subjected to the same taxation treatment as income from shares by the taxation law of the State of which the debtor company is a resident.
4. the provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the dividends, being a resident of a State Contracting, carries on in the other Contracting State of which the company paying the dividends is a resident, either an industrial or commercial activity through a permanent establishment situated therein, an independent profession through a fixed base which is located , and generating participation of dividends related actually. In this case, the provisions of article 7 or article 14, as the case may be, shall apply.
5. where a company which is a resident of a Contracting State derives profits or income from the other State Contracting, that other State may levy no tax on dividends paid by the company, except to the extent where such dividends are paid to a resident of that other State or insofar as where the dividends generating participation relates effectively to a permanent establishment or a fixed base situated in that other State , or impose any tax in respect of the taxation of retained earnings, retained earnings of the company, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income from that other State.
6. Notwithstanding the provisions of paragraph 2, dividends from a Contracting State and paid to the Government of the other Contracting State or to a local community, a public body or an agency of that other State or National Bank of that other State or any company wholly-owned by that other State, shall be exempt from tax in the first State.
Article 11 income from receivables 1. Revenues from claims from a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2. However, such income may also be taxed in the Contracting State they come and under the laws of that State, but if the beneficial owner of the income is a resident of the other Contracting State, the tax so charged shall not exceed 5 per cent of the gross amount of the income.
3. Notwithstanding the provisions of paragraph 2, revenues from claims are exempt from tax in the Contracting State they come when it comes: a) income of trade receivables (including those that are represented by trade effects) resulting from the payment term of supplies of goods, products or services by companies;
(b) income paid in respect of a loan or a credit extended, guaranteed or insured under a scheme organised by a Contracting State or a political subdivision or local to promote exports;
(c) income from receivables or loans of any nature (not represented by securities to bearer) paid by a company to a banking business;
(d) income from deposits of money made from a banking business;
(e) revenues paid to the other Contracting State, to any of its political subdivisions or local authority, a public body or an agency of the other State, to National Bank of that other State or any company entirely owned by that other State.
4 'income claims' or 'income' used in this article means income of claims of any nature, secured or not secured by mortgage or a right to participate in the debtor's profits, and including income on public funds and bonds of debentures, including premiums and prizes attaching to such securities. However, these terms do not, for the purposes of this section, the penalties for late payment or income treated as dividends under article 10, paragraph 3.
5. the provisions of paragraphs 1, 2 and 3 do not apply if the beneficial owner of the income, resident of a State Contracting, carries on in the other Contracting State comes revenues, either an activity or business through a permanent establishment situated therein, or independent through a fixed base is situated, and that the generator claim income related actually. In this case, the provisions of article 7 or article 14, as the case may be, shall apply.
6. the revenues of debt are considered as coming from a Contracting State when the payer is a resident of that State. However, when the debtor of income, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment or a fixed base, for which the debt giving rise to payment of the proceeds was contracted and which supports the load of these revenues, these are considered as coming from the State where the permanent establishment, or the base fixed is located.
7. when, due to special relationship between the payer and the beneficial owner or that one and the other have with third parties, the amount of revenues, taking into account the debt for which they are paid, exceeds the amount which would be agreed upon the payer and the beneficial owner in the absence of such

relationship, the provisions of this article apply only to the latter amount. In this case, the excess part of the payments is taxable according to the laws of each Contracting State and in light of the other provisions of this Convention.
Article 12 royalties 1.
The royalties from a Contracting State and paid to a resident of the other Contracting State are taxable only in that other State, if the resident is the beneficial owner.
2. the term "royalties" as used in this article means payments of any kind paid to the use or the right to the use of a copyright in a literary, artistic or scientific work, including software as well as motion picture films and films or tapes recorded for radio or television, a patent, of a name or trade mark a design or model, plan, a formula or process secret and information relating to experience gained in the industrial, commercial or scientific.
3. the provisions of subsection 1 do not apply if the beneficial owner of the royalties, being a resident of a State Contracting, carries on in the other Contracting State comes royalties, either an activity or business through a permanent establishment situated therein, or independent through a fixed base is situated, and that the right or well Builder royalty related actually. In this case, the provisions of article 7 or article 14, as the case may be, shall apply.
4. royalties shall be deemed as coming from a Contracting State when the payer is a resident of that State. However, when the debtor's royalties, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment or a fixed base, for which the contract giving rise to the payment of the royalties has been concluded and which supports the load of these charges, they are considered as coming from the State where the permanent establishment or fixed base is located.
5. when, due to special relationship between the payer and the beneficial owner or that one and the other have with third parties, the amount of fees, taking into account the provision for which they are paid, exceeds the amount which would be agreed upon the payer and the beneficial owner in the absence of such relationship, the provisions of this article apply only to the latter amount. In this case, the excess part of the payments is taxable according to the laws of each Contracting State and in light of the other provisions of this Convention.
Article 13 Gains in capital 1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in article 6 and situated in the other Contracting State, may be taxed in that other State.
2. gains from the alienation of movable property forming part of the assets of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or movable property which belong to a fixed base available to a resident of a Contracting State in the other Contracting State for the exercise of an independent profession, including such gains from the alienation of this establishment stable (alone or with the whole of the company) or the basic fixed may be taxed in that other State.
3. gains from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in the Contracting State where the place of effective management of the enterprise is situated.
4. gains from the alienation of any property other than those referred to in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the alienator is a resident.
Article 14 independent personal services 1. Income derived by a resident of a Contracting State of professional services or other activities of an independent character are taxable only in that State unless the resident provides habitually in the other Contracting State of a fixed basis for the exercise of its activities.
If he has such a fixed base, the income are taxable in the other State but only insofar as they are attributable to that fixed base.
2. the term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15 income from employment 1. Subject to the provisions of articles 16, 18, and 19, salaries, wages and other similar remuneration that a resident of a Contracting State receives in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is exercised, the remuneration received for this may be taxed in that other State.
2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first State if: a) the recipient is present in the other State for a period or periods exceeding in total 183 days during any period of twelve months commencing or ending in the taxable period ((, and b) the remuneration is paid by an employer, or on behalf of an employer, who is not a resident of the other State, and c) the remuneration is not borne by a permanent establishment or a fixed base that the employer has in the other State.
3. Notwithstanding the preceding provisions of this article, remuneration received in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State where the effective seat of management of the enterprise is situated.
Article 16 companies 1.
Directors, tokens of presence and other similar payments derived by a resident of a Contracting State in his capacity as member of the Board of directors or a similar organ of a company which is a resident of the other Contracting State may be taxed in that other State.
The foregoing applies also to payments received because of the performance of duties which, under the law of the Contracting State of which the company is a resident, are treated as functions of a similar nature to those performed by a person referred to in that provision.
2. the remuneration received by a person referred to in paragraph 1 from a company which is a resident of a Contracting State due to the pursuit of one activity daily management or technical, commercial or financial as well as remuneration derived by a resident of a Contracting State derives from his daily as a partner in a partnership, other than a corporation, which is a resident of a Contracting State may be taxed in accordance with the provisions of article 15, as if it were compensation an employee pulls of paid employment, and as if the employer was the company.
Article 17 Artistes and sportspersons 1. Notwithstanding the provisions of articles 14 and 15, income derived by a resident of a Contracting State from his personal activities exercised in the other Contracting State as an artist of the show, as an artist of theatre, film, radio or television, or a musician, or as a sportsperson, may be taxed in that other State.
2. where the income from activities exercised by an entertainer or a sportsperson personally and as such are attributed not to the entertainer or athlete himself but to another person, that income are taxable, notwithstanding the provisions of articles 7, 14 and 15, in the Contracting State where the activities of the entertainer or athlete are exercised.
Article 18 Pensions subject to the provisions of article 19, paragraph 2, pensions and other similar remuneration paid to a resident of a Contracting State in respect of past employment shall be taxable only in that State. However, such pensions and other similar remuneration may also be taxed in the other Contracting State if they come from that State. This provision applies also to pensions and other similar remuneration paid in implementation of the social legislation of a Contracting State or of a general scheme organized by the State to supplement the benefits provided by its social legislation.
Article 19 public functions 1. (a) salaries, wages and other similar remuneration paid by a Contracting State or of its political subdivisions or local authority to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
(b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) has the nationality of that State, or (ii) did not become a resident of that State solely to provide the services.
2. a) Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid by a State contractor or one of its political subdivisions or local authorities, either directly or out of funds created by,.

to an individual in respect of services rendered to that State or subdivision or authority, shall be taxable only in that State.
(b) However, such pension or other similar remuneration shall be taxable only in the other Contracting State if the individual is a resident of this State and has citizenship.
3. the provisions of articles 15, 16, 17 and 18 shall apply to wages, salaries, pensions and other similar remuneration paid in respect of services rendered in the framework of a trade or business carried on by a Contracting State or of its political subdivisions or local authorities.
Article 20 students are as a student or a trainee who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State and who is staying in the first State sole purpose of pursuing his studies or training, receives to cover maintenance costs, for studies or training are not taxable in that State provided that they are derived from sources outside that State.
Article 21 other income 1. Items of income of a resident of a Contracting State, wherever they come from, who are treated not in the foregoing articles of this Convention shall be taxable only in that State.
2. the provisions of paragraph 1 shall not apply to income other than income from immovable property as defined in article 6, paragraph 2, if the recipient of such income, resident of a State Contracting, carries on in the other Contracting State, or industrial activity or business through a permanent establishment situated therein, or independent with a fixed base that is located , and that the right or the generator of income related actually.
In this case, the provisions of article 7 or article 14, as the case may be, shall apply.
3. Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting State which are not covered by the preceding articles of the Convention and who come from the other Contracting State are taxable in that other State if these items are not taxed in the first State.
Chapter IV taxation of capital Article 22 Fortune 1. Capital represented by real property referred to in article 6, owned by a resident of a Contracting State and which are situated in the other Contracting State, be taxed in that other State.
2. capital represented by movable property forming part of the assets of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or by movable property which belong to a fixed base which a resident of a State Contracting has in the other Contracting State for the exercise of an independent profession, may be taxed in that other State.
3. capital represented by ships and aircraft operated in international traffic and by movable property allocated to the operation of such ships or aircraft, is taxable only in the Contracting State where the seat of effective management of the enterprise is situated.
4. all other elements of capital of a resident of a Contracting State shall be taxable only in that State.
Chapter V methods for eliminating double taxation Article 23 1. In regards to Bahrain, double taxation shall be avoided as follows: a) where a resident of Bahrain derives income which, in accordance with the provisions of this Convention, may be taxed in Belgium, Bahrain gives the tax it collects on the income of that resident a deduction of an amount equal to the tax paid in Belgium. However, this deduction shall not exceed the portion of the income tax, calculated before deduction, which corresponds to the taxable income in Belgium; and (b) where, pursuant to a provision any of this Convention, income derived by a resident of Bahrain are exempt from tax in Bahrain, Bahrain may nevertheless, in calculating the amount of tax on the remaining income of that resident, take into account the exempted income.
2. in what regards the Belgium, double taxation shall be avoided as follows: a) where a resident of the Belgium receives income, other than dividends, interest or royalties, or owns elements of capital, which may be taxable to Bahrain in accordance with the provisions of this Convention, and which are imposed, the Belgium free from tax revenues or those elements of fortune but it can to calculate the amount of its tax on the remaining income or capital of that resident, apply the same rate if revenues or elements of fortune in question had not been exempted.
Notwithstanding the provisions of this sub-paragraph and any other provision of this Convention, the Belgium takes into account, for determining additional fees established by local authorities and Belgian agglomerations, professional income exempted from tax in Belgium in accordance with this sub-paragraph. These additional fees are calculated on the tax that would be due in Belgium if the income in question were drawn from Belgian sources.
(b) dividends received by a company which is a resident of the Belgium of a company which is a resident of Bahrain are exempted from tax corporations in Belgium, under the conditions and limits laid down by Belgian legislation.
(c) subject to the provisions of Belgian law relating to the imputation on the Belgian tax of taxes paid abroad, where a resident of the Belgium derives items of income which are included in its total income subject to Belgian tax and which consist of interest or royalties, the Bahraini tax levied on that income is charged against Belgian tax relating to such income.
(d) where, in accordance with Belgian legislation, losses suffered by a business carried on by a resident of the Belgium in a permanent establishment located in Bahrain were actually deducted from the profits of this company for its imposition in Belgium, the exemption in the a) does not apply in Belgium to the profits of other taxable periods that are attributed to this establishment insofar as these benefits were also exempt from taxation in Bahrain because of their compensation with such losses.
Chapter VI provisions special Article 24 non-discrimination 1. Nationals of a Contracting State not be subjected in the other Contracting State to any taxation or obligation y, which is other or more heavy than those which are or may be subjected nationals of that other State who are in the same situation, including with regard to the residence. This provision applies also, notwithstanding the provisions of article 1, to persons who are not residents of a Contracting State or of the two Contracting States.
2. stateless persons who are residents of a Contracting State are subject in one or the other Contracting State to any taxation or obligation y, which is other or more heavy than those which are or may be subjected the State nationals who are in the same situation, including with regard to the residence.
3. the imposition of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State is not established in that other State to less favourably than the taxation levied on enterprises of that other State carrying on the same activities. This provision cannot be interpreted as obliging a Contracting State to grant to residents of the other State contracting the personal allowances, reliefs and reductions for tax depending on the situation or family responsibilities which it grants to its own residents.
4 unless the provisions of article 9, paragraph 1, article 11, paragraph 7 and article 12, paragraph 5, are applicable, revenues from claims, charges and other expenses paid by an enterprise of a Contracting State to a resident of the other Contracting State are deductible in determining taxable profits of the undertaking, under the same conditions as if they had been paid to a resident of the first State. Similarly, the debts of an enterprise of a Contracting State to a resident of the other Contracting State are deductible, for the determination of the fortune of this company, under the same conditions as if they had been contracted to a resident of the first State.
5. enterprises of a Contracting State, whose capital is wholly or in part, directly or indirectly owned or controlled by one or more residents of the other Contracting State, are subject in the first State to any taxation or obligation y, which is other or more heavy than those which are or may be subject other similar of the first State businesses.
6. the provisions of this article shall apply notwithstanding the provisions of article 2, taxes of any nature or description.
Article 25 mutual agreement Procedure 1. Where a person considers that the measures taken by a Contracting State or by the two Contracting States result or will result in taxation not in accordance with the provisions of this Convention for it, it may, irrespective of the remedies provided by the domestic law of those States, submit his case to the competent authority of the Contracting State of which it is a resident or, if his case falls under article 24 , paragraph 1, to that of the State whose

It has the nationality. The case must be submitted within three years following the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.
2. the competent authority shall endeavour, if the claim appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to avoidance of taxation not in accordance with the Convention.
The agreement is applied irrespective of the time limits provided by the domestic law of the Contracting States.
3. the competent authorities of the Contracting States shall endeavour by mutual agreement, to resolve any difficulties or doubts arising as to which can lead the interpretation or application of the Convention.
4. the competent authorities of the Contracting States agree to the administrative measures necessary for the implementation of the provisions of the Convention and, in particular, the justifications to be provided by each Contracting State residents to benefit in the other State's exemptions or tax reductions provided for by the Convention.
5. the competent authorities of the Contracting States communicate directly between them for the purposes of the Convention.
Article 26 exchange of information 1. The competent authorities of the Contracting States exchange likely relevant information to apply the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of any nature or description levied on behalf of the Contracting States insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by articles 1 and 2.
2. the information received under paragraph 1 by a Contracting State are confidential in the same way that the information obtained pursuant to the legislation of that State and will be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the collection of taxes referred to in paragraph 1, by the procedures or proceedings in respect of those taxes or the establishment by decisions on appeals related to these taxes, or the control of the foregoing. These persons or authorities use this information for these purposes only. They can reveal such information public hearings of courts or in judgments. Notwithstanding the foregoing, information received by a Contracting State can be used for other purposes where this possibility is due to the laws of both States, and when the competent authority of the State providing the information authorizes its use.
3. the provisions of paragraphs 1 and 2 shall not be interpreted as imposing a State Contracting obligation: has) to take administrative measures derogating from its legislation and its administrative practice or those of the other Contracting State;
(b) to provide information that could be obtained on the basis of its legislation or in the context of its normal administrative practice or those of the other Contracting State;
(c) to provide information that would reveal a commercial, industrial or professional secret or trade process, or information the disclosure of which would be contrary to public order;
(d) to provide information that would not neither held by its authorities nor in possession or under the control of those present within its territorial jurisdiction.
4. If information is requested by a State contractor pursuant to this article, the other Contracting State uses the powers available to it to obtain the information requested, even if there in no need for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations provided for in paragraph 3 unless these limitations are likely to prevent a Contracting State to provide information only because they are not of interest to him in the national framework.
Article 27 Assistance in recovery Contracting States, within the limits of the capacities of their tax administrations, give each other mutual help and assistance for the purpose to notify and to recover the taxes referred to in article 2 as well as all additional increases, penalties for payment late, fees and fines without criminal character. The competent authorities of the Contracting States regulate agreed, and within the limits of their tax systems, detailed rules for the application of this Article.
Section 28 Limitation of benefits the provisions of articles 10, 11 and 12 shall not apply if the main purpose or one of the main objectives of any person involved in the creation or the assignment of a right or a claim under which dividends, income from receivables or royalties are paid to take advantage of these items by means of that creation or assignment.
Article 29 members of diplomatic missions and consular posts 1. The provisions of the present Convention shall affect the fiscal privileges enjoyed by members of diplomatic missions or consular posts pursuant to the General rules of international law or the provisions of special agreements.
2. for the purposes of the Convention, the members of diplomatic missions or consular of a Contracting State certified in another State Contracting or in a third State, who have the nationality of the State accrediting, are deemed be residents of that State if they are subject to the same obligations, tax on the income and on capital as are residents of that State.
3. the Convention does not apply to international organizations, to organs or officials, or to persons who are members of diplomatic missions or consular posts of a third State, when they are located on the territory of a Contracting State and not treated as residents in one or the other Contracting State tax on the income or on capital.
Chapter VII final provisions Article 30 entry into force 1. Each Contracting State shall notify the other Contracting State the completion of the procedures required by its law for the entry into force of this Convention. The Convention shall enter into force upon the date of receipt of the latter of these notifications.
2. the provisions of the Convention shall apply: a) the taxes due at source on assigned revenues or payment from 1 January of the year next following that of the entry into force of the Convention;
(b) to other taxes on income of taxable periods commencing from 1 January of the year next following that of the entry into force of the Convention;
(c) to taxes on capital established on elements of existing fortune from 1 January of the year next following that of the entry into force of the Convention.
Article 31 termination this Convention shall remain in force as long as it has not been denounced by a Contracting State.
Each of the Contracting States may, until 30 June of any calendar year from the fifth year following that of the entry into force, the report, in writing and through diplomatic channels, to the other Contracting State. En_cas_de denunciation before July 1 of such year, the Convention shall cease to apply: a) the taxes due at source on assigned revenues or payment from 1 January of the year next following that of the termination;
(b) to other taxes on income of taxable periods commencing from January 1 of the year immediately following that of the termination;
(c) to taxes on capital established on elements of existing fortune from January 1 of the year immediately following that of the termination.
IN witness whereof, the undersigned, being duly authorized by their respective Governments, have signed the present Convention.
DONE in Manama, November 4, 2007, in duplicate, in the languages Arabic, Dutch, French, and English, the four texts being equally authentic. The English text shall prevail in the event of divergence between the texts.
Protocol at the time of signing of the Convention between the Kingdom of Belgium and the Kingdom of Bahrain for the avoidance of double taxation and fiscal evasion with respect to taxes on income and on capital, the undersigned have agreed upon the following provisions which form an integral part of the Convention.
1 Re article 3, paragraph 2: when interpreting the provisions of the Convention, which are identical or similar to those of the model of tax of the OECD Convention, Contracting States tax administrations follow the General principles of the comments of the Model Convention, provided that Contracting States have not inserted in these comments of comments expressing disagreement with these principles and insofar as the Contracting States agree not a divergent interpretation in the special circumstances.
2. Ad article 4: has) in regards to Bahrain, the expression 'resident of a Contracting State' also applies in the event that no income tax is perceived responsibility of individuals or companies resident in Bahrain. If, in the future, such tax on natural persons or companies was in effect, the definition would read as follows:

"in the case of Bahrain, any person who, under the Bahraini law, is subject to tax in Bahrain because of his domicile, residence, of its place of management, place of incorporation or any other criterion of a similar nature and applies also to the Kingdom of Bahrain as well as all of its political subdivisions or its local authorities. However, this term does not include persons who are subject to tax in Bahrain for the income from sources in that State or capital which is located. (' b) with respect to both Bahrain that the Belgium, the term "resident of a Contracting State" means as an entity, a background, an institution or an organization, established in accordance with the legislation of Bahrain or the Belgium following the case, whose purpose is limited to the granting of superannuation, even if the entity, the bottom, the institution or organization in question is exempt from tax in the State in which it is established.
(3 Ad article 11, paragraph 3: in regards to the Belgium, it is understood that the provision of b) applies in any case:-income debt or credit for which financial support is granted after the opinion of the Committee of financial support for export («Finexpo»);
-to income of a debt or credit consented by the Association for the coordination of financing medium-term Belgian exports ('Creditexport'); and - income debt or credit provided by the national Delcredere Office.
4 Ad article 15, paragraph 1: it is understood that self-employment is exercised in a Contracting State when the activity in respect of which salaries, wages and other similar remuneration are paid is effectively exercised in that State. The activity is effectively carried out in that State when the employee is physically present in this State to carry out this activity.
IN witness whereof, the undersigned, being duly authorized by their respective Governments, have signed this Protocol.
DONE in Manama, November 4, 2007, in duplicate, in the languages Arabic, Dutch, French, and English, the four texts being equally authentic. The English text shall prevail in the event of divergence between the texts.

Protocol amending the CONVENTION between the Kingdom of Belgium and the Kingdom of Bahrain for A avoid the DOUBLE taxation and A prevent the escape tax for taxes on income and on the FORTUNE the Government of the Kingdom of Belgium and the Government of Kingdom of Bahrain, desiring to amend the Convention between the Kingdom of Belgium and the Kingdom of Bahrain for avoidance of double taxation and fiscal evasion with respect to taxes on income and on capital, signed in Manama on November 4, 2007 (hereinafter "the Convention"), have agreed to the following provisions: Article 1 the text of article 26 of the Convention shall be deleted and replaced by the following: ' 1. the competent authorities of the Contracting States exchange likely relevant information to apply the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of any nature or description levied by or for the. account of the Contracting States insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by articles 1 and 2.
2. the information received under paragraph 1 by a Contracting State are confidential in the same way that the information obtained pursuant to the legislation of that State and will be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the collection of taxes referred to in paragraph 1, by the procedures or proceedings in respect of those taxes or the establishment by decisions on appeals related to these taxes, or the control of the foregoing. These persons or authorities use this information for these purposes only. They can reveal such information public hearings of courts or in judgments. Notwithstanding the foregoing, information received by a Contracting State can be used for other purposes where this possibility is due to the laws of both States, and when the competent authority of the State providing the information authorizes its use.
3. the provisions of paragraphs 1 and 2 may not be interpreted as imposing a State Contracting obligation: (a) administrative measures derogating from its legislation and its administrative practice or those of the other Contracting State;
(b) to provide information that could be obtained on the basis of its legislation or in the context of its normal administrative practice or those of the other Contracting State;
(c) to provide information that would reveal a commercial, industrial or professional secret or trade process, or information the disclosure of which would be contrary to public order.
4. If information is requested by a Contracting State in accordance with the provisions of this article, the other Contracting State uses the powers available to it to obtain the information requested, even if there in no need for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations provided for in paragraph 3 of this article unless these limitations are likely to prevent a Contracting State to provide information only because they are not of interest to him in the national framework.
5. the provisions of paragraph 3 of this article may in no case be interpreted as allowing a Contracting State to withhold information only because they are held by a Bank, other financial institution, a trust, a Foundation, an agent or a person acting as an agent or trustee or because the information relate to the rights of property of a person. To obtain this information, the tax authorities of the requested Contracting State has the power to request information and to carry out investigations and hearings notwithstanding any contrary provision in its tax legislation. ' Article 2 each Contracting State shall notify, by diplomatic channels to the other Contracting State the completion of the procedures required by its law for the entry into force of the present Protocol. The Protocol shall enter into force on the date of the latter of these notifications and its provisions shall have effect: a) to taxes due at source on assigned revenues or payment from 1 January of the year next following that of the entry into force of the Protocol;
(b) to other taxes on income of taxable periods commencing from 1 January of the year next following that of the entry into force of the Protocol;
(c) in relation to the other taxes collected by or on behalf of the Contracting States, to all other tax payable in respect of taxable events occurring from 1 January of the year next following that of the entry into force of the Protocol.
Article 3 this Protocol, which is part of the Convention, shall remain in force so long that the Convention remains in force and will apply as long as the Convention itself applies.
IN witness whereof, the undersigned being duly authorized by their respective Governments, have signed this Protocol.
DONE in Manama, November 23, 2009, in duplicate, in the languages Arabic, Dutch, French and English, all texts being equally authentic. The English text shall prevail in the event of divergence between the texts.