Law Approving The Convention Between The Government Of The Kingdom Of Belgium And The Government Of The People's Republic Of China For The Avoidance Of Double Taxation And Prevent Tax Evasion Regarding Income Tax, Made To Br

Original Language Title: Loi portant assentiment à la Convention entre le Gouvernement du Royaume de Belgique et le Gouvernement de la République populaire de Chine tendant à éviter la double imposition et à prévenir la fraude fiscale en matière d'impôts sur le revenu, faite à Br

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Read the untranslated law here: http://www.ejustice.just.fgov.be/cgi/article_body.pl?numac=2014015003&caller=list&article_lang=F&row_id=900&numero=922&pub_date=2014-02-21&dt=LOI&language=fr&fr=f&choix1=ET&choix2=ET&fromtab=+moftxt&trier=publication&sql=dt+=+'LOI'&tri=pd+AS+RANK+

Posted the: 2014-02-21 Numac: 2014015003 FEDERAL Foreign Affairs, external trade and development COOPERATION PUBLIC SERVICE November 26, 2013. -Law approving the agreement between the Government of the Kingdom of Belgium and the Government of the People's Republic of China for the avoidance of double taxation and prevent tax evasion on income taxes, done at Brussels on October 7, 2009 (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 agreement between the Government of the Kingdom of Belgium and the Government of the People's Republic of China for the avoidance of double taxation and prevent tax evasion on income taxes, done at Brussels on 7 October 2009, will release its full and complete effect.
Promulgate this Act, order that it self under the seal of the State and published by le Moniteur.
Given in Brussels, on November 26, 2013.
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) Session 2012 - 2013 and 2013-2014.
Senate.
Documents: Bill filed July 11, 2013, no. 5 - 2204/1.
Report, no. 5-2204/2.
Parliamentary Annals: Discussion, meeting of October 24, 2013.
Vote, meeting of October 24, 2013.
House of representatives.
Documents: Draft transmitted by the Senate, no. K.53 - 3092/1.
Report on behalf of the Committee, no. K.53 - 3092/2.
Text adopted in plenary plenary and subject to Royal assent, no. K.53 - 3092/3.
Parliamentary Annals: Discussion, meeting of November 7, 2013.
Vote, meeting of November 7, 2013.
(2) see the Decree of the Flemish community / the Flemish Region of 13 July 2012 (Moniteur belge of 10 September 2012), the Decree of the French community of 24 January 2013 (Moniteur belge of 6 March 2013), the Decree of the German-speaking community of 22 October 2012 (Moniteur belge of 9 November 2012), the Decree of the Walloon Region from March 7, 2013 (Moniteur belge of 26 March 2013 - ed. 2) and order of the Brussels-Capital Region from 11 July 2013 (Moniteur belge of 18 July 2013).
(3) this convention entered into force on 29 December 2013, in accordance with article 28.

CONVENTION between the Government of Kingdom of Belgium and the Government of the Republic popular of China for A avoid the DOUBLE taxation and A prevent the fraud tax for taxes on income the Government of the Kingdom of Belgium and the Government of the Republic of China, desiring to conclude a Convention for the avoidance of double taxation and prevent tax evasion regarding taxes on income , Have agreed upon the following provisions: Article 1 persons this Convention shall apply 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 imposed on behalf of a Contracting State, its political subdivisions or its local authorities, irrespective of the collection system.
2 are regarded as taxes on income taxes imposed on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property, as well as taxes on capital gains.
3. the existing taxes to which the Convention shall apply are in particular: has) with regard to China: (i) the tax on the income of natural persons (the individual income tax);
(ii) the tax on income from business (the enterprise income tax);
including relating to these taxes and the additional said taxes withholdings and prepayments (hereinafter referred to as "Chinese 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 tax;
(v) the supplementary crisis contribution;
including relating to these taxes and the additional such taxes and prepayments prepayments (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 provide timely substantial changes made to their respective taxation laws.
Article 3 General Definitions 1. For the purposes of this Convention, unless the context otherwise requires: a) "Belgium" means the Kingdom of Belgium; used in a geographical sense, it means the territory of the Kingdom of Belgium, including its territorial sea as well as the areas in which, in accordance with international law, the Kingdom of Belgium has sovereign rights or jurisdiction;
(b) the term "China" means the People's Republic of China; used in a geographical sense, it means the whole of the territory of the People's Republic of China, within which the Chinese tax legislation applies, including its territorial sea, as well as areas beyond its territorial sea on which, in accordance with international law and its own internal law, the People's Republic of China has sovereign rights for the purpose of exploration and exploitation of the resources of the seabed subsoil and the superjacent waters;
(c) the terms «A Contracting State» and «The other Contracting State» mean, as the context, the Belgium or China;
(d) the term "tax" means, depending on the context, the Belgian tax or Chinese tax;
(e) the term "person" includes natural persons, companies and any other body of persons;
(f) the term "company" means any legal person or any entity that is regarded as a legal person for the purposes of taxation in the State Contracting, which it is a resident.
(g) 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;
(h) 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;
(i) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
(j) 'competent authority' means: (i) with regard to China, the national tax Administration (State Administration of Taxation) or his authorized delegate;
(ii) in relation to the Belgium, the Minister of finance or his authorized representative.
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 otherwise requires, meaning that assigns, at that time, the law of that State concerning the taxes covered by the Convention, the meaning given to this term or expression by the tax of that State prevailing on the meaning attributed to it by the other branches of the law of This state.
Article 4 Resident 1. To the meaning of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax in that State, because of his domicile, residence, place of incorporation, place of effective management, of its seat of management or any other criterion of a similar nature and also applies to that State as well as all of its political subdivisions its local authorities or its public bodies. However, this term does not include persons who are subject to tax in that State as the income from sources in that State.
2. when, under the provisions of paragraph 1 an individual is a resident of both Contracting States, his status is set as follows: has) 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. If the place of effective management cannot be determined, the competent authorities of the Contracting States settle the question by mutual agreement.
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) an office;
(d) a factory;
e) a workshop, and f) a mine, an oil or gas, a quarry or any other place of extraction of natural resources.
3. the term "permanent establishment" also includes: a) a site construction or mounting or monitoring training, but only when this project or these activities continue for a period of more than twelve months;
b) the supply of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for this purpose, but only where such activities continue (for the same project or a connected project) within the territory of a Contracting State for one or more periods, representing a total of more than 183 days within a period any of 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, where one person (b) other than an agent of an independent status to which paragraph 6(b) applies acting in a Contracting State on behalf of an enterprise of the other Contracting State and has powers she is usually to enter into contracts on behalf of the company, this company is considered as having a permanent establishment 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 of a Contracting State shall not be considered as having a permanent establishment in the other Contracting State merely that it carries on its business 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. However, when the activities of such an agent are exercised wholly or almost wholly on behalf of this company, this agent is not regarded as an independent agent within the meaning of this paragraph.
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.
Article 6 property income 1. Income derived by a resident of a Contracting State from immovable property 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 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 to practice 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 analogous in identical or similar conditions and dealing independently with the enterprise of which it is a permanent establishment.
3. in determining the profits of a permanent establishment, shall be allowed as deduction expenses incurred for the purposes of the permanent establishment, including Executive and general expenses so incurred administration, either in the Contracting 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 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 derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.
2. the provisions of paragraph 1 apply also to the beneficesprovenant of the participation in a pool, a joint operation or an international operating agency.
Article 9 companies associated 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 B and accordingly imposes B of the 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 companies

independent, the other State proceeded to an appropriate adjustment of the amount of the tax that is received on the 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: a) 5 per cent of the gross amount of the dividends if the beneficial owner of the dividends is one company (other than a partnership) which prior to the payment of dividends, held, during an uninterrupted period of at least twelve months, directly at least 25 per cent of the capital of the company paying the dividends;
b) 10 per cent of the gross amount of the dividends in all other cases.
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 or rights, with the exception of receivables, as well as other revenues which are subject to the same taxation treatment as income from shares by the laws of the State Contracting including 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 , nor impose no tax on undistributed profits 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. the provisions of this article are not applicable if the main purpose or one of the main objectives of any person involved in the creation or assignment of the shares or other rights in respect of which the dividends are paid is to take advantage of this article by means of that creation or assignment.
Article 11 interest 1.
Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2. However, such interest may also be taxed in the Contracting State they come and under the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2, interest from a Contracting State and paid to the Government of the other Contracting State, any of its political subdivisions or local authorities, its Central Bank or any financial institution wholly owned by the Government of that other Contracting State, as well as interest paid due loans guaranteed or insured by the Government of a Contracting State one of its political subdivisions or local authorities, its Central Bank or any financial institution wholly owned by the Government of that State Contracting are exempt from tax in the first State.
4. the term «interest» as 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, this term does not, within the meaning of this section, the penalties for late payment or interest considered dividends by the legislation of the Contracting State in which the debtor company is a resident.
5. the provisions of paragraphs 1 and 2 do not apply where the beneficial owner of the interest, being a resident of a State Contracting, carries on in the other Contracting State comes the interests, either an industrial activity or business through a permanent establishment situated therein, or independent through a fixed base which is located, and that the generator of the interest receivable related actually.
In this case, the provisions of article 7 or article 14, as the case may be, shall apply.
6. the interests are regarded as arising in a Contracting State when the payer is a resident of that Contracting State. However, when the debtor of interests, whether or not a resident of a Contracting State, has in a State Contracting a permanent establishment or a fixed base which the debt giving rise to the payment of interest was contracted and which supports the load of these interests, these are considered as being from the State Contracting where the permanent establishment or fixed base 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 interest, 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 interest is taxable according to the laws of each Contracting State and in light of the other provisions of this Convention.
8. the provisions of this article shall not apply if the main purpose or one of the main objectives of any person involved in the creation or the assignment of the claim in respect of which the interest is paid to take advantage of this article by means of that creation or assignment.
Article 12 royalties 1. The royalties from a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 7 per cent of the gross amount of the royalties.
3. the term "royalties" as used in this article means payments of any kind paid to use or the concession of the use of a copyright in a literary, artistic or scientific work, including cinematograph films and films or tapes for radio or television, patent, know-how (know-how), a name or trade mark a drawing or a model, a plan, a formula or a secret process, as well as to the use or the right to use industrial, commercial or scientific equipment and information with respect to experience gained in the industrial, commercial or scientific field.
4. the provisions of paragraphs 1 and 2 shall 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.
5. royalties shall be deemed as arising in a Contracting State when the payer is a resident of that Contracting State.
However, when the debtor's royalties, whether or not a resident of a Contracting State, has in a State Contracting 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 being from the State Contracting where the permanent establishment or fixed base is located.
6. 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 royalties remain taxable according to the law

of each Contracting State and in light of the other provisions of this Convention.
7. the provisions of this article shall not apply if the main purpose or one of the main objectives of any person involved in the creation or assignment of the rights in respect of which the royalties are paid is to take advantage of this article by means of that creation or assignment.
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 that an enterprise of a State Contracting 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 that State.
4. gains a resident of a State Contracting draws from the alienation of shares deriving directly or indirectly more than 50 per cent of their value of immovable property situated in the other Contracting State may be taxed in that other State.
5. gains derived by a resident of a Contracting State from the alienation of shares of a company which is a resident of the other Contracting State may be taxed in that other Contracting State if the first resident at a time any period of twelve months preceding this alienation, owned, directly or indirectly, at least 25 percent of the shares of this company. This provision does not apply to the shares which are the subject of substantial transactions and regular on a stock exchange recognised if the total number of shares disposed of by that resident in the fiscal year in which the disposition takes place does not exceed 5 per cent of the shares traded this company.
6. gains from the alienation of any property other than those referred to in paragraphs 1, 2, 3, 4 and 5 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 to a liberal profession or other activities of an independent character shall be taxable only in that State. However, such income may also be taxed in the other Contracting State: a) if the resident has in usual way, in the other Contracting State, of a fixed basis for the exercise of its activities; in this case, only the fraction of the revenue that is attributable to that fixed base may be taxed in that other State; or (b) if his stay in the other Contracting State extends over a period, or periods of a duration equal to or greater than 183 days in a period any of twelve months commencing or ending in the fiscal year concerned; in this case, only the portion of revenues that is derived from activities exercised in the other Contracting State is taxable in that other State.
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 dependent personal services 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 not in total 183 days during any period of twelve months commencing or ending in the fiscal year concerned; 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 by an enterprise of a Contracting State are taxable in that State.
Article 16 directors presence chips. directors ' fees 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.
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 1. 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.
2. Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid in implementation of the social legislation of a Contracting State may be taxed in that State. This provision applies also to pensions and other similar remuneration paid in implementation of a general plan hosted by that Contracting State to supplement the pension benefits provided under this legislation.
Article 19 public functions 1.
(a) salaries, wages and other similar remuneration paid by a Contracting State or any of its political subdivisions or local authorities 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 Contracting State or of its political subdivisions or local authorities, either directly or by sampling on funds that they have made, 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 pensions and 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 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, receives to cover maintenance costs or studies are not taxable in that State, provided that they are derived from sources outside that State.
Article 21 other income items of income which are not covered by the preceding articles of the present Convention and which come from a Contracting State may be taxed in that State.
Article 22 Elimination of double taxation 1.
In what regards the Belgium, double taxation is eliminated in the following manner: has) where a resident of the Belgium derives income other than dividends, interest or royalties, which emerged in China in accordance with the provisions of this Convention, the Belgium exempts from tax revenues but it can calculate the amount of tax on the remaining income of that resident apply the same rate if the income in question had not been exempted.
The Belgium free also subject to escalation the profits of an enterprise of the Belgium

that are attributable to a permanent establishment through which the company carries on its business in China and which may be taxed in China in accordance with the provisions of this Convention. This exemption shall not apply where the activities carried on through that permanent establishment are solely or principally:-to make investments collective or financial.
-to provide financial services for the exclusive or dominant benefit the company or related companies;
or when this establishment holds a portfolio investment or a copyright, a patent, a name or trade mark, a drawing, a model, a plan, a formula or secret process representing a total of more than a third of the elements that make up the assets of the establishment, and that such detention is not part of the activities, other than the detention of such rights or property carried on through that permanent establishment.
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) the exemption provided for in subparagraph a) is also granted in relation to the income treated as dividends under the Belgian law, a resident of the Belgium receives in respect of an interest in an entity incorporated under the laws of China, when this entity was not imposed as such in China, provided that the resident of the Belgium has been imposed in China proportionally to its interest in this entity, on the revenue payment revenues considered dividends under the Belgian legislation. The exempt income is income after deduction of expenses, presentations in Belgium or elsewhere, pertaining to the management of the interest in this entity.
(c) dividends received by a company which is a resident of the Belgium of a company which is a resident of China are exempt from the corporate income tax in Belgium under the conditions and within the limits provided for by Belgian legislation.
(d) where a company which is a resident of the Belgium receives from a company which is a resident of China for dividends that are not exempt pursuant to subparagraph (c)), such dividends are nevertheless exempt from tax the corporations in Belgium if the company which is a resident of China has actively in China an effective commercial or industrial activity. In this case, these dividends are exempt under the conditions and within the limits laid down in the Belgian legislation, with the exception of those relating to the tax regime for the revenues that are used for the payment of dividends.
A corporation is not considered as engaged actively in China an effective commercial or industrial activity when this company is an investment company, a Corporation (other than a Bank) financing or a cash company or this company holds a portfolio investment or a copyright, a patent, a trademark, a drawing, a model a plan, a formula or secret process in total representing more than one-third of its assets and that this detention is not part of the active exercise of an industrial or commercial activity.
(e) 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, Chinese tax levied on that income is charged on the Belgian tax relating to such income.
(f) where pursuant to the Belgian legislation, losses suffered by a business carried on by a resident of the Belgium in a permanent establishment situated in China were actually deducted from the profits of this company for its imposition in Belgium, the exemption provided for in subparagraph (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 China due to their compensation with such losses.
(2 in China, double taxation is eliminated as follows: a) where a resident of China derives income from Belgium, the amount of tax payable on such income in accordance with the provisions of the Convention in Belgium is due on the Chinese tax resident dependants. The amount of the charge cannot exceed the amount of that income-related Chinese tax, calculated in accordance with the laws and tax regulations of China.
(b) where a company which is a resident of the Belgium pays a dividend to a company which is a resident of the China and who holds at least 20 per cent of the shares of the company paying the dividend, the allocation takes account of Belgian tax paid in respect of its revenue by the company paying the dividend.
Article 23 miscellaneous provisions of the present Convention are without prejudice to the right of each of the Contracting States to apply its legislation and its internal measures for fraud and tax evasion that they whether or not described as such, insofar as they do not rise to a levy contrary to this Convention.
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. the taxation 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.
3 unless the provisions of article 9, paragraph 1, article 11, paragraph 7, or article 12, paragraph 6, shall apply, interest, royalties and other expenses paid by an enterprise of a Contracting State to a resident of the other Contracting State are deductible, for the determination of the taxable profits of the company, under the same conditions as if they had been paid to a resident of the first State.
4. 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.
5. 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 Contracting State in which it is a national. 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 may communicate with each other about the administrative measures necessary for the implementation of the provisions of the Convention and, inter alia, about the justifications to be provided by the residents of each State to benefit in the other State's exemptions or tax reductions provided for by this Convention.
5. the competent authorities of the Contracting States may communicate directly with each other for the purposes of the Convention.
Article 26 exchange of information 1. The competent authorities

Contracting States exchange information likely to be relevant 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, in particular to prevent tax evasion relating to these taxes, 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 in accordance with the internal law of that State and are communicated only to persons or authorities (including courts and administrative bodies) involved in the establishment or the collection of taxes referred to in paragraph 1, by the procedures or proceedings in respect of those taxes 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.
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.
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.
5. the provisions of paragraph 3 may not be interpreted as allowing a Contracting State to refuse to provide, at the request of the other Contracting State, information held by banks or other financial institutions.
Article 27 members of diplomatic and posts missions consular 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.
Article 28 entry into force 1.
The two Contracting States shall notify, in writing and through diplomatic channels, the completion of the procedures required by their legal internal for the entry into force of this Convention.
This Convention shall enter into force the 30th day following receipt of the latter of these notifications. This Convention shall be applicable to the income from January 1 of the year following the year of its entry into force or relating to fiscal years beginning on or after January 1 of the year following the year of its entry into force.
2. the agreement between the Government of the Kingdom of Belgium and the Government of the People's Republic of China for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and the Protocol signed in Beijing on April 18, 1985, as amended by the additional protocol signed at Beijing on 27 November 1996, will cease to be applicable to the income with respect to which the provisions of this Convention will produce their effects in accordance with the provisions of paragraph 1.
Article 29 termination this Convention shall remain in force indefinitely but either of the Contracting States may, until June 30 of any calendar year beginning after the expiration of a period of five years from the date of its entry into force, denounce, in writing and through diplomatic channels to the other Contracting State. In such a case, this Convention shall cease to apply in what concerns income received during the tax years beginning on or after 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 at Brussels, on October 7, 2009, in duplicate, in languages Chinese, Dutch, French and English, the four texts being equally authentic. In case of divergence of interpretation between the texts in languages Chinese, Dutch, English and French, the English text shall prevail.

Protocol at the time of signing of the Convention between the Government of the Kingdom of Belgium and the Government of the People's Republic of China for the avoidance of double taxation and to prevent tax evasion regarding taxes on income, the undersigned have agreed to the following provisions which are an integral part of the Convention.
1. for the purposes of the provisions of this Convention, it is understood that the term "fiscal year" means: has) with regard to Belgium, the taxable period;
(b) with regard to China, the taxable year.
2. for the purposes of article 13, paragraphs 4 and 5: If in a Contracting State, the tax rate on capital gains referred to in article 13, paragraphs 4 and 5, exceeds 10 percent, the competent authorities shall consult.
3. for the purposes of article 26, paragraph 5: the information held by banks and other financial institutions will be exchanged on request. If the request identifies both a specific taxpayer and a bank or financial institution says, the competent authority of the requested State may refuse to collect information that is not already in its possession.
4. for the application by Belgium of article 26, paragraph 5: a) to obtain this information, the Belgian tax administration has the power to request information and to carry out investigations and hearings notwithstanding any contrary provision of the domestic tax laws of the Belgium;
(b) the penalties provided for by the domestic legislation of Belgium against a person who fails to provide relevant information for the purposes of its internal tax legislation shall apply as if the obligation to provide information laid down in paragraph 5 was an obligation under the tax legislation of the Belgium;
(c) where a person refuses to provide information requested under paragraph 5 or fails to provide this information within the time limit prescribed by the Belgian tax authorities, the Belgian tax authorities may have recourse to enforcement measures against this person.
IN witness whereof, the undersigned, being duly authorized by their respective Governments, have signed this Protocol.
DONE at Brussels, on October 7, 2009, in duplicate, in languages Chinese, Dutch, French and English, the four texts being equally authentic. In case of divergence of interpretation between the texts in languages Chinese, Dutch, English and French, the English text shall prevail.