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13 FEBRUARY 2009. - An Act to assent to the Convention between the Kingdom of Belgium and the Democratic Republic of the Congo with a view to avoiding double taxation and preventing tax evasion and fraud in respect of income and capital taxes, and the Protocol, signed in Brussels on 23 May 2007 (1)

ALBERT II, King of the Belgians,
To all, present and to come, Hi.
The Chambers adopted and We sanction the following:
Article 1^er. This Act regulates a matter referred to in Article 77 of the Constitution.
Art. 2. The Convention between the Kingdom of Belgium and the Democratic Republic of the Congo with a view to avoiding double taxation and preventing tax evasion and fraud on income and property taxes, and the Protocol, signed in Brussels on 23 May 2007, will come out their full and full effect.
Promulgate this law, order that it be clothed with the seal of the State and published by the Belgian Monitor.
Given in Brussels on 13 February 2009.
ALBERT
By the King:
Minister of Foreign Affairs,
K. DE GUCHT
Minister of Finance,
D. REYNDERS
Seal of the state seal:
Minister of Justice
S. DE CLERCK
____
Notes
(1) 2007-2008 and 2008-2009 session:
Senate.
Documents. - Bill tabled on 7 October 2008, No. 4-946/1. - Report, number 4-946/2.
Annales parliamentarians. - Discussion and voting: meeting of 11 December 2008.
House of Representatives.
Documents. - Transmitted project speaks Senate, No. 52-1673/1. - Text adopted in plenary and subject to Royal Assent, No. 52-1673/3. Report, no. 52-1673/2.
Annales parliamentarians. - Discussion in vote: meeting on 29 January 2009.
(2) The Convention entered into force on 24 December 2011, in accordance with article 28.

CONVENTION
ENTER
BELGIUM ROYAUME
AND
DEMOCRACY REPUBLIC OF CONGO
THE DOUBLE IMPOSITION
AND FIRST FRENCH AND FISCAL EVASION
IN THE MATIERE D'IMPOTS SUR LE REVENU
AND ON FORTUNE
THE GOVERNMENT OF THE BELGIUM ROYAUME
AND
THE GOVERNMENT OF THE DEMOCRACY REPUBLIC OF CONGO,
DECISIONS to enter into a convention to avoid double taxation and to prevent tax fraud and evasion in respect of income and property taxes,
agreed on the following provisions:
CHAPTER I^er. - Scope of the Convention
Article 1^er
Target persons
This Convention applies to persons who are residents of a Contracting State or both Contracting States.
Article 2
Taxes targeted
1. This Convention applies to taxes on income and on property collected on behalf of a Contracting State, its political subdivisions or local authorities, irrespective of the system of perception.
2. The taxes on total income, total property, or income or property, including taxes on earnings from the alienation of movable or real estate property, taxes on the total amount of wages paid by companies and taxes on surplus-values, are considered income and property taxes.
3. The current taxes to which the Convention applies are:
(a) with regard to the Democratic Republic of the Congo:
(i) rental income tax;
(ii) movable income tax;
(iii) corporate profits tax;
(iv) tax on the profits of the liberal professions;
(v) professional compensation tax;
(vi) the exceptional tax on compensation paid by employers to their expatriate staff; and
(vii) land tax on built properties;
including additional penalties for such taxes,
(hereinafter referred to as the Congolese tax) and
(b) with regard to the Kingdom of Belgium:
(i) the tax of natural persons;
(ii) corporate tax;
(iii) corporation tax;
(iv) non-resident tax;
(v) the complementary contribution of crisis;
including pre-payments and additional taxes and pre-payments,
(hereinafter referred to as "Belgian tax").
4. The Convention also applies to taxes of an identical or similar nature that would be established after the date of signature of the Convention and that would be in addition to or replace existing taxes. The competent authorities of the Contracting States shall communicate the significant changes to their tax laws.
CHAPTER II. - Definitions
Article 3
General definitions
1. For the purposes of this Convention, unless the context requires a different interpretation:
(a) (i) the term "Democratic Republic of the Congo" refers to the territory of the Democratic Republic of the Congo and the areas adjacent to territorial waters, as well as the maritime areas and air spaces on which, in accordance with international law, the Democratic Republic of the Congo exercises the rights relating to air space, seabed, marine basement and their natural resources;
(ii) the term "Belgium" means the Kingdom of Belgium; employed in a geographical sense, it designates the territory of the Kingdom of Belgium, including the territorial sea and the maritime areas and the airspace on which, in accordance with international law, the Kingdom of Belgium exercises sovereign rights or jurisdiction;
(b) the terms "a Contracting State" and "the other Contracting State" mean, in the context, the Democratic Republic of the Congo or Belgium;
(c) the terms "activity", in relation to a business, and "business" include the exercise of liberal professions or other independent activities;
(d) the term "society" means any corporation or entity that is considered to be a legal entity for taxation purposes in the Contracting State of which it is a resident;
(e) the term "company" applies to the exercise of any business or business;
(f) the term "competent authority" means:
(i) in the Democratic Republic of the Congo, the Minister of Finance or his authorized delegate;
(ii) in Belgium, the Minister of Finance or its authorized representative;
(g) the terms "business of a Contracting State" and "business of the other Contracting State" shall, respectively, designate a business operated by a resident of a Contracting State and a business operated by a resident of the other Contracting State;
(h) the term "international traffic" means any transport by a ship or aircraft, operated by an enterprise of a Contracting State, except where the ship or aircraft is operated only between points in the other Contracting State;
(i) the term "national", in respect of a Contracting State, means:
(i) any natural person who has the nationality or citizenship of that Contracting State;
(ii) any legal or association constituted in accordance with the legislation in force in that Contracting State;
(j) the term "person" includes individuals, societies and all other groups of persons.
2. For the application of the provisions of the Convention at any time by a Contracting State, any term or expression not defined therein shall, unless the context requires a different interpretation, the meaning assigned to it by that State at that time to the law of that State in respect of the taxes to which the Convention applies, the meaning assigned to that term or expression by the tax law of that State in respect of the meaning assigned to it by the other branches of the law of that State.
Article 4
Resident
1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the law of that State, is subject to tax in that State because of his domicile, residence, management seat or any other similar criterion and also applies to that State as well as to all its political subdivisions or local authorities. However, this term does not include persons who are subject to tax in that State only for income from sources located in that State or for the property located therein.
2. When, according to the provisions of paragraph 1^er, a natural person is a resident of the two Contracting States, his situation is settled as follows:
(a) that person is considered to be a resident only of the State where the person has a permanent home; if it has a permanent home in both states, it is considered to be a resident only of the State with which its personal and economic ties are the narrowest (centre of vital interests);
(b) if the residence of that person cannot be determined, under paragraph (a), it is considered to be a resident only of the State in which the person is habitually resident;
(c) if the person normally stays in both States or if he or she does not normally stay in any of them, he or she is considered to be a resident only of the State of which he or she is a national;
(d) if that person has the nationality of the two States or has no nationality of any of them, the competent authorities of the contracting States shall decide the question by mutual agreement.
3. When, according to the provisions of paragraph 1^er, a person other than a natural person is a resident of the two Contracting States, it is considered to be a resident only of the State where its effective management seat is located.
Article 5
Stable establishment
1. For the purposes of this Convention, the term "stable establishment" means a fixed business facility through which a company operates all or part of its business.
2. The term "stable establishment" includes:
(a) a steering seat;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop; and
(f) a mine, oil or gas well, a career or any other place of extraction of natural resources.
3. A construction or construction site is a permanent establishment only if its duration exceeds 6 months.
4. Notwithstanding the preceding provisions of this Article, it is considered that there is no "stable establishment" if:
(a) the use of facilities for the sole purpose of storage, exposure or delivery of goods owned by the company;
(b) goods owned by the company are stored for storage, exposure or delivery purposes only;
(c) goods belonging to the enterprise are stored for the sole purpose of processing by another company;
(d) a fixed business facility is used for the sole purpose of purchasing goods or collecting information for the business;
(e) a fixed business facility is used for the sole purpose of carrying out any other preparatory or auxiliary activity for the enterprise; and
(f) a fixed business facility shall be used for the purposes of the cumulative year of activities referred to in subparagraphs (a) to (e), provided that the overall activity of the fixed business facility resulting from the cumulative operation shall be preparatory or auxiliary.
5. Notwithstanding the provisions of paragraphs 1^er and 2, where a person - other than an agent enjoying an independent status to which paragraph 6 applies - shall act on behalf of a business and shall, in a Contracting State, have powers that it normally exercises in it to enter into contracts on behalf of the enterprise, that undertaking shall be deemed to have a permanent establishment in that State for all activities that the person exercises for the enterprise, unless the activities of that person are limited to those
6. A business is not considered to have a permanent establishment in a Contracting State solely because it operates in it through a broker, a general commissioner or any other agent with an independent status, provided that such persons act within the ordinary framework of their business.
7. The fact that a corporation that is a resident of a Contracting State controls or is controlled by a corporation that is a resident of the other Contracting State or that operates therein (either through a permanent establishment or not) is not sufficient in itself to make any of these companies a permanent establishment of the other.
CHAPTER III. - Income tax
Article 6
Real estate income
1. The income derived by a resident of a Contracting State from real property, including the income of farms or forestry, located in the other Contracting State, may be taxed in that other State.
2. The term "real property" has the meaning assigned to it by the law of the Contracting State in which the property is located. The term includes, in any case, accessories, dead or alive livestock of farms and forests, the rights to which the provisions of private law apply in respect of land ownership, the usufruct of real property and the rights to variable or fixed payments for the exploitation or concession of the exploitation of mineral deposits, sources and other natural resources. Ships, ships and aircraft are not considered real property.
3. The provisions of paragraph 1^er applies to income derived from direct exploitation or enjoyment, lease or charter, as well as any other form of exploitation of real property.
4. The provisions of paragraphs 1^er and 3 also apply to income from real property of a business.
Article 7
Business benefits
1. The profits of an enterprise of a Contracting State shall be taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located therein. If the company operates in such a way, the profits of the company are taxable in the other State but only to the extent that they are attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3, where a business of a Contracting State carries on business in the other Contracting State through a permanent establishment located therein, it shall be charged, in each Contracting State, to that permanent establishment the profits that it could have realized if it had constituted a separate undertaking carrying out identical or similar activities under identical or similar conditions and dealing independently, in particular with the enterprise of which it constitutes a permanent establishment.
3. In order to determine the benefits of a permanent establishment, deductions are made of the expenses incurred for the purposes of this permanent establishment, including the executive expenses and general administrative expenses so exposed, either in the State where the permanent establishment is located or elsewhere.
However, no deduction is allowed for amounts that would, if any, be paid (other than the reimbursement of costs incurred) by the permanent establishment at the company's central office or at any of its offices, such as royalties, fees or other similar payments, for the use of patents or other fees, or as a commission, for specific services rendered or for a financial activity, or, unless
Similarly, in the calculation of the profits of a permanent establishment, there shall be no account of the amounts (other than the reimbursement of costs incurred) carried by the permanent establishment at the rate of the central office of the enterprise or of any of its other offices, such as royalties, fees or similar payments, for the use of patents or other fees, or as a commission for specific services rendered or for any management activity or
4. (a) If it is customary in a Contracting State to determine the profits attributable to a permanent establishment on the basis of a distribution of the total profits of the enterprise between its various parties, no provision in paragraph 2 shall prevent that Contracting State from determining the taxable profits according to the distribution in use. The method of distribution adopted must, however, be such that the result obtained is consistent with the principles contained in this article.
(b) In the absence of regular accounting or other evidence to determine the amount of profits of a business of a Contracting State, which is attributable to its permanent establishment located in the other State, the profits attributable to that establishment may be determined in that other State in accordance with its own legislation, in particular in the light of the normal profits of similar enterprises of the same State, in the same activity or similar activities under similar conditions. However, if the applied method results in a double taxation of the same profits, the competent authorities of the two states agree to avoid this double taxation.
5. No profit is charged to a permanent establishment because it simply purchased goods for the company.
6. For the purposes of the preceding paragraphs, the benefits to be charged to the permanent establishment are determined annually on the same basis, unless there are valid and sufficient grounds to proceed otherwise.
7. Where profits include income elements treated separately in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.
Article 8
Maritime and air navigation
1. The profits of an enterprise of a Contracting State arising from the operation, in international traffic, of ships or aircraft, shall be taxable only in that State.
2. For the purposes of this section, benefits derived from the operation, in international traffic, of ships or aircraft include:
(a) profits from the company's lease of ships or aircraft, armed and equipped;
(b) profits derived from the bare hull rental of ships or aircraft operated in international traffic, where such lease constitutes an incidental source of income for the international transport undertaking;
(c) profits derived from the use or lease of containers (including trailers, barges and related equipment for the transport of containers) used for transport in international traffic of goods or goods, where such use or lease is an incidental activity for the company carrying international transport activities or is directly related to such activities.
3. The provisions of paragraph 1^er also applies to benefits derived from participation in a pool, a joint operation or an international operating organization.
Article 9
Associated companies
1. When
(a) an enterprise of a Contracting State directly or indirectly participates in the direction, control or capital of a business of the other Contracting State, or
(b) the same persons directly or indirectly participate in the direction, control or capital of a business of a Contracting State and a business of the other Contracting State,
and that, in both cases, both companies are, in their commercial or financial relations, bound by agreed or imposed conditions, that differ from those that would be agreed between independent companies, the profits that, without these conditions, would have been realized by one of the companies but could not be in fact because of these conditions, may be included in the profits of that undertaking and imposed accordingly.
2. When a Contracting State includes in the profits of a company of that State - and therefore imposes - profits on which a company of the other Contracting State has been imposed in that other State, and that the profits thus included are profits that would have been realized by the enterprise of the first State if the terms agreed between the two enterprises had been those that would have been agreed between independent enterprises, the other State shall make the adjustment that it considers appropriate of the tax
To determine this adjustment, the other provisions of this Convention shall be taken into account and, if necessary, the competent authorities of the Contracting States shall consult.
Article 10
Dividends
1. Dividends paid by a corporation that is a resident of a Contracting State to a resident of the other Contracting State shall be taxable in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the corporation paying the dividends is a resident, and according to the law 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) in the Democratic Republic of the Congo:
(i) 15 per cent of the gross amount of dividends paid by a corporation whose profits are exempted from Congolese tax pursuant to the Investment Code or a particular law organizing the investment in the sectors referred to in Article 3 of the said Code, if the beneficial owner is a corporation that owns at least 25 per cent of the capital of the corporation that pays the dividends;
(ii) 10 per cent of the gross amount of dividends in all other cases;
(b) in Belgium:
(i) 5 per cent of the gross amount of dividends if the beneficial owner is a corporation that holds directly at least 25 per cent of the capital of the corporation that pays the dividends;
(ii) 10 per cent of the gross amount of dividends in all other cases.
This subsection does not affect the corporation's taxation of profits that are used to pay dividends.
3. The term "dividends" used in this article refers to income from shares, shares or benefits, shares of mine, share of founder or other share of beneficiaries with the exception of receivables, as well as income - even allocated in the form of interest - subject to the same tax regime as income from shares by the tax legislation of the State whose debiting society is a resident.
4. The provisions of paragraphs 1^er and 2 shall not apply where the beneficial owner of the dividends, a resident of a Contracting State, exercises in the other Contracting State whose dividend paying company is a resident, a business activity through a permanent establishment located therein, and that the dividend-generating interest is effectively connected to it. In this case, the provisions of Article 7 shall apply.
5. Where a corporation that is a resident of a Contracting State derives from the profits or income of the other Contracting State, that other State shall not collect any tax on the dividends paid by the corporation, except to the extent that such dividends are paid to a resident of that other State or to the extent that the dividend-generating interest is effectively connected to a permanent establishment located in that other State, or to take no tax, in respect of
Article 11
Interest
1. Interest arising from a Contracting State and paid to a resident of the other Contracting State shall be taxable in that other State.
2. However, these interests are also taxable in the Contracting State in which they arise and according to the law 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 shall be exempted from tax in the Contracting State from which it arises when it is:
(a) interest in commercial receivables - including those represented by commercial effects - resulting from the payment of goods, products or services by companies in the future;
(b) interest in receivables or loans of any kind, not represented by bearer securities, paid to bank companies;
(c) interest paid to the other Contracting State or to any of its political subdivisions or local authorities or to the Central Bank of the other Contracting State or to any public body of that State, subdivisions or local authorities.
4. The term "interest" used in this section refers to income from receivables of any kind, whether or not accompanied by mortgage guarantees or an interest clause in the debtor's profits, including income from public funds and borrowing obligations, including premiums and lots attached to these securities. Penalties for late payment as well as interest treated as dividends under section 10, paragraph 3, are not considered to be interest within the meaning of this section.
5. The provisions of paragraphs 1^er, 2 and 3 shall not apply where the beneficial owner of the interest, a resident of a Contracting State, exercises in the other Contracting State in which the interest arises, an enterprise activity through a permanent establishment located therein, and that the interest-generating debt is effectively connected to it. In this case, the provisions of Article 7 shall apply.
6. Interest shall be deemed to arise from a Contracting State where the debtor is a resident of that State. However, where the debtor of interest, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment for which the debt giving rise to the payment of interest has been contracted and which bears the burden of such interests, these shall be deemed to arise from the State where the permanent establishment is located.
7. Where, because of special relations between the debtor and the beneficial owner or between the debtor and the other person maintain with third persons, the amount of interest, taking into account the debt for which they are paid, exceeds the amount agreed upon by the debtor and the beneficial owner in the absence of such relations, the provisions of this Article shall apply only to the latter amount. In such cases, the surplus portion of the payments shall be taxable in accordance with the laws of each Contracting State and taking into account the other provisions of this Convention.
Article 12
Claims
1. Royalties from a Contracting State and paid to a resident of the other Contracting State shall be taxable in that other State.
2. However, such royalties are also taxable in the Contracting State in which they arise and according to the law 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 10 per cent of the gross amount of the royalties.
3. The term " royalties" used in this article means the remuneration of any kind paid for the use or concession of the use of a copyright on a literary, artistic or scientific work, including software as well as film films, tapes or records used for radio or television programming, a patent, a trademark or a trade, a drawing or a
4. The provisions of paragraphs 1^er and 2 shall not apply where the beneficial owner of the royalties, a resident of a Contracting State, carries on in the other Contracting State in which the royalties arise a business activity through a permanent establishment located therein and that the right or property that generates royalties is effectively connected to it. In this case, the provisions of Article 7 shall apply.
5. The royalties shall be deemed to arise from a Contracting State when the debtor is a resident of that State. However, where the debtor of royalties, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment for which the contract giving rise to the payment of royalties has been concluded and which bears the charge of such royalties, these shall be deemed to be from the State where the permanent establishment is located.
6. Where, because of special relations between the debtor and the beneficial owner or between the debtor and the other person maintain with third persons, the amount of royalties, taking into account the benefit for which they are paid, exceeds the amount agreed upon by the debtor and the beneficial owner in the absence of such relations, the provisions of this section apply only to the latter amount. In such cases, the surplus portion of the payments shall be taxable in accordance with the laws of each Contracting State and taking into account the other provisions of this Convention.
Article 13
Capital gains
1. The gains derived by a resident of a Contracting State from the alienation of real property referred to in Article 6, and situated in the other Contracting State, shall be taxable in that other State.
2. Gains derived from the alienation of movable property that are part of the assets of a permanent establishment that a business of a Contracting State has in the other Contracting State, including such gains arising from the alienation of that permanent establishment (on or with the whole enterprise), are taxable in that other State.
3. The gains that a business of a Contracting State derives from the alienation of ships or aircraft operated in international traffic, or of movable property assigned to the operation of such ships or aircraft, shall be taxable only in that State.
4. The gains derived by a resident of a Contracting State from the alienation of shares of a corporation of which more than 50 per cent of the value comes from real property located in the other Contracting State, are taxable in that other Contracting State. However, this subsection does not apply to gains from alienation:
(a) shares that are listed on a recognized stock market of one of the Contracting States; or
(b) shares sold or exchanged as part of a reorganization of a corporation, a merger, split or similar operation; or
(c) shares that derive more than 50 per cent from their value of real property in which the corporation operates; or
(d) shares owned by a person who holds directly or indirectly less than 25 percent of the capital of the corporation whose shares are disposed of.
5. Gains derived from the alienation of any property other than those referred to in the preceding paragraphs shall be taxable only in the Contracting State of which the assignor is a resident.
Article 14
Employment income
1. Subject to the provisions of Articles 15, 17 and 18 the salaries, salaries and other similar remuneration that a resident of a Contracting State receives under an employee 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 as such is taxable in that other State.
2. Notwithstanding the provisions of paragraph 1^erthe remuneration of a resident of a Contracting State in respect of an employee employed in the other Contracting State shall be taxable only in the first State if:
(a) the beneficiary stays in the other State for a period or periods not exceeding a total of 183 days during any twelve-month period beginning or ending during the tax period under review, and
(b) compensation shall be paid by an employer or on behalf of an employer who is not a resident of the other State, and
(c) the pay charge is not borne by a permanent establishment that the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article, remuneration received for an employee employed on board a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that State.
Article 15
Corporate managers
1. Notwithstanding the provisions of Article 10, the fortieths, attendance tokens and other similar remuneration that a resident of a Contracting State receives as a member of the board of directors or of a similar body of a corporation that is a resident of the other Contracting State may be taxed in that other State.
2. The remuneration that a person referred to in paragraph 1 shall receive from a corporation that is a resident of a Contracting State because of the exercise of a day-to-day activity of direction or technical, commercial or financial character as well as the remuneration that a resident of a Contracting State derives from his or her daily activity as a member of a corporation other than a corporation by shares, which is a resident of a Contracting State, shall be taxable in accordance with the provisions
Article 16
Artists and athletes
1. Notwithstanding the provisions of Articles 7 and 14, income derived by a resident of a Contracting State from his or her personal activities carried out in the other Contracting State as an artist of the spectacle, such as a theatre, cinema, radio or television artist, or a musician, or as a sportsman, may be taxed in that other State.
2. Where the income of activities that an entertainer or a sportsperson exercises personally and in this capacity is attributed not to the artist or to the athlete himself but to another person, such income shall be taxable, notwithstanding the provisions of Articles 7 and 14, in the Contracting State where the activities of the artist or athlete are carried out.
Article 17
Pensions and vacations
1. Subject to the provisions of paragraph 2 of Article 18, pensions and other similar remuneration, as well as life annuities, from a Contracting State and paid to a resident of the other Contracting State, shall be taxable in the first State.
2. The term "life annuity" means a fixed amount payable periodically on dates determined during life or for a specified or determinable period under a commitment to make payments in exchange for a full and adequate money counter-value or any other equivalent value.
3. Notwithstanding the provisions of paragraph 1, pensions and other amounts paid under the social security legislation of a Contracting State shall be taxable only in that State.
Article 18
Public functions
1. (a) Salaries, salaries and other similar remuneration, other than pensions, paid by a Contracting State or any of its political subdivisions or local authorities to a natural person, for services rendered to that State or subdivision or community, shall be taxable only in that State.
(b) However, such wages, salaries and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and if the natural person is a resident of that State who:
(i) has the nationality of that State; or
(ii) did not become a resident of that State for the sole purpose of rendering the services.
2. (a) Pensions and other similar remuneration paid by a Contracting State or any of its political subdivisions or local authorities, either directly or by debiting from funds that they have constituted, to a natural person, for services rendered to that State or to that subdivision or community, 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 natural person is a resident of that State and has its nationality.
3. The provisions of Articles 14, 15, 16 and 17 apply to wages, salaries, pensions, and other similar remuneration paid for services rendered in the course of a business activity carried out by a Contracting State or one of its political subdivisions or local authorities.
4. The provisions of paragraph 1^er shall also apply to wages, salaries and other similar remuneration paid by a Contracting State, any of its political subdivisions or local authorities or any entity of public law to a natural person, in respect of an activity carried out in the other Contracting State under a cooperation or assistance agreement.
Article 19
Students, apprentices and interns
A student, apprentice or trainee who is present in a Contracting State for the sole purpose of pursuing his or her studies, training or internship and who is, or who was immediately before his or her visit, a resident of the other Contracting State shall be exempt from tax in the first State on the amounts that he or she receives to cover his or her costs of maintenance, study or training, provided that they arise from the first sources outside.
Rule 20
Other income
1. The income elements of a resident of a Contracting State, wherever they arise, which are not dealt with in the preceding articles of this Convention shall be taxable only in that State.
2. The provisions of paragraph 1^er shall not apply to income other than income derived from real property as defined in paragraph 2 of Article 6, where the beneficiary of such income, a resident of a Contracting State, carries on in the other Contracting State a business activity through a permanent establishment located therein and the right or property that generates income is effectively connected to it. In this case, the provisions of Article 7 shall apply.
3. Notwithstanding the provisions of paragraphs 1^er and 2, elements of income of a resident of a Contracting State that are not dealt with in the preceding articles of the Convention and that come from the other Contracting State may also be taxed in that other State if such elements are not imposed in the first State.
CHAPTER IV. - Imposition of the forture
Article 21
Fortune
1. The property constituted by real property referred to in Article 6, which is owned by a resident of a Contracting State and situated in the other Contracting State, is taxable in that other State.
2. The fortune constituted by movable property that is part of the assets of a permanent establishment that a business of a Contracting State has in the other Contracting State is taxable in that other State.
3. The assets made by vessels and aircraft belonging to an enterprise of a Contracting State that operates them in international traffic and by movable property assigned to the operation of such ships or aircraft shall be taxable only in that Contracting State.
4. All other assets of a resident of a Contracting State shall be taxable only in that State.
CHAPTER V. - Methods to eliminate double taxation
Article 22
Double taxation will be avoided as follows:
1. Concerning the Democratic Republic of the Congo,
(a) subject to the provisions of Congolese legislation relating to the taxation of the Democratic Republic of the Congo of the tax payable in any other country than the Democratic Republic of the Congo (and amendments that would not affect the general principle), the Belgian tax paid by a resident of the Democratic Republic of the Congo:
(i) on income taxable in Belgium in accordance with the provisions of this Convention, is deductible from tax due in accordance with the tax legislation of the Democratic Republic of the Congo;
(ii) on the elements of fortune that are taxable in Belgium in accordance with the provisions of this Convention, is deductible from the tax due in accordance with the tax legislation of the Democratic Republic of the Congo.
This deduction, however, cannot exceed the fraction of the total tax of the Democratic Republic of the Congo due to the income or assets considered in relation to all income or fortune.
(b) where, in accordance with any provision of this Convention, the income that a resident of the Democratic Republic of the Congo receives or the wealth that he or she owns is tax-free in that State, the Democratic Republic of the Congo may, however, to calculate the amount of tax on the rest of the income or fortune of that resident, take into account the exempt income or fortune.
2. With regard to Belgium,
(a) When a Belgian resident receives income, other than dividends, interest or royalties, or owns assets that are taxed in the Democratic Republic of the Congo in accordance with the provisions of this Convention, Belgium exempts tax from such income or assets, but it may, in order to calculate the amount of its taxes on the rest of the income or fortune of that resident, apply the same rate as if the income or property had not been exempted. For the determination of additional taxes established by Belgian municipalities and agglomerations, Belgium takes into account, notwithstanding the provisions of this subparagraph and any other provision of the Convention, professional income exempted from tax in Belgium in accordance with the previous sentence. These additional taxes are calculated on the tax that would be due in Belgium if the professional income in question were derived from Belgian sources.
(b) The dividends that a corporation that is a resident of Belgium receives from a corporation that is a resident of the Democratic Republic of the Congo are exempted from the corporate tax in Belgium, under the conditions and limits provided by Belgian legislation.
Notwithstanding the condition of taxation provided by Belgian law, are also exempted from corporate tax in Belgium, the dividends referred to in Article 10, paragraph 2, (a), (i), that a corporation that is a resident of Belgium receives from a corporation that is a resident of the Democratic Republic of the Congo and that are paid on the basis of profits of business activities carried out in the Democratic Republic of the Congo, that the said Republic Belgium exempts these dividends for a period of ten years from the taking of effect of the Convention and in accordance with the other limits and conditions provided by Belgian legislation. This ten-year period is renewed for a further ten-year period, unless the competent authority of Belgium communicates, before the end of the first ten-year period, in writing to the competent authority of the Democratic Republic of the Congo, the non-reconduction of the measure.
(c) Subject to the provisions of Belgian law relating to imputation on Belgian tax of taxes paid abroad, where a Belgian resident receives income elements that are included in his overall income subject to Belgian tax and which consist of interest or royalties, the tax of the Democratic Republic of the Congo levied on these revenues is charged on the Belgian tax relating to the said income.
(d) When, in accordance with Belgian law, losses incurred by a company operated by a Belgian resident in a permanent establishment located in the Democratic Republic of the Congo were effectively deducted from the profits of that company for its taxation in Belgium, the exemption provided in (a) does not apply in Belgium to the profits of other taxable periods that are attributable to that establishment, to the extent that these profits were also exempted from tax in the Democratic Republic.
CHAPTER VI. - Special provisions
Article 23
Non-discrimination
1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or obligation relating thereto, which is other or heavier than those to which nationals of that other Contracting State are or may be subject to the same situation, particularly in respect of the residence. This provision also applies, notwithstanding the provisions of section 1^erpersons who are not residents of a Contracting State or both Contracting States.
2. Stateless persons who are residents of a Contracting State shall not be subject in either Contracting State to any taxation or related obligation, which is other or heavier than those to which nationals of the State concerned are or may be subject in the same situation, particularly in respect of the residence.
3. The imposition of a permanent establishment that a business of a Contracting State has in the other Contracting State is not established in that other State in a less favourable manner than the taxation of the enterprises of that other State that exercise the same activity. This provision shall not be construed as requiring a Contracting State to grant personal deductions, deductions and tax reductions to the residents of the other Contracting State on the basis of the situation or family expenses that it grants to its own residents.
4. Unless the provisions of paragraph 1^er of Article 9, paragraph 7 of Article 11 or paragraph 6 of Article 12 shall not apply, any interest, royalties and other expenses paid by a business of a Contracting State to a resident of the other Contracting State shall be deductible, for the determination of the taxable profits of that 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 shall be deductible, for the determination of the taxable fortune of that undertaking, on the same basis as if they had been contracted to a resident of the first Contracting State.
5. The undertakings of a Contracting State, whose capital is wholly or partly, directly or indirectly, held or controlled by one or more residents of the other Contracting State, shall not be subject in the first State to any taxation or obligation relating thereto, which is other or heavier than those to which the other similar enterprises of the first State are or may be subject.
6. The provisions of this section shall apply, notwithstanding the provisions of section 2, to taxes of any kind or denomination.
Article 24
Friendly procedure
1. Where a person considers that the measures taken by a Contracting State or by the two Contracting States shall result in or result in taxation not in accordance with the provisions of this Convention, the person may, independently of the remedies provided by the domestic law of those States, submit his case to the competent authority of the Contracting State of which he is a resident or, if his case falls under paragraph 1 of Article 23, to that of the Contracting State of which he or she is a national. The case shall be submitted within three years after the first notification of the measure that results in taxation not in conformity 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 in a position to provide a satisfactory solution, to resolve the case by amicable agreement with the competent authority of the other Contracting State, with a view to avoiding taxation not in conformity with the Convention. The agreement shall be 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 the difficulties or to dispel the doubts to which the interpretation or application of the Convention may take place.
4. The competent authorities of the Contracting States shall agree on the administrative measures necessary for the implementation of the provisions of the Convention and in particular on the justifications to be provided by the residents of each Contracting State to benefit in the other State from the exemptions or tax reductions provided for in this Convention.
5. The competent authorities of the Contracting States may communicate directly with each other, including within a joint commission composed of these authorities or their representatives, with a view to reaching an agreement as indicated in the preceding paragraphs.
Rule 25
Exchange of information
1. The competent authorities of the Contracting States shall exchange the information necessary to implement the provisions of this Convention or those of the domestic legislation relating to the taxes covered by the Convention to the extent that the taxation they provide is not contrary to the Convention. The exchange of information is not restricted by section 1^er. The exchange of information on taxes not covered by section 2 may be subject to special agreements.
2. Information received under paragraph 1^er by a Contracting State shall be held secret in the same manner as the information obtained under the domestic law of that State and shall be communicated only to the persons or authorities (including the courts and administrative bodies) concerned by the establishment or collection of the taxes referred to in paragraph 1, by the procedures or prosecutions relating to such taxes, by the decisions on remedies relating to such taxes, or by the control of the foregoing. These individuals or authorities only use this information for these purposes. They may disclose this information in public court hearings or judgments.
3. The provisions of paragraphs 1^er and 2 may in no case be construed as imposing on a Contracting State the obligation:
(a) take administrative measures derogating from its legislation and administrative practice or those of the other Contracting State;
(b) provide information that could not be obtained on the basis of its legislation or in the course of its normal administrative practice or those of the other Contracting State;
(c) provide information that would reveal a commercial, industrial, professional or commercial secret or information that would be contrary to public order.
4. A Contracting State shall, at the request of the other Contracting State, disclose information held by a bank, financial institution, agent or person acting as an agent or trustee. However, this provision does not apply where the domestic legislation of a Contracting State does not permit such information to be obtained.
5. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use the powers available to it to obtain the information requested, even if it does not need it for its own tax purposes. The obligation in the previous sentence is subject to the limitations set out in paragraphs 3 and 4 unless these limitations are likely to prevent a Contracting State from communicating information solely because it does not have an interest in it in the national context.
Rule 26
Tax recovery assistance
1. The Contracting States shall provide mutual assistance for the notification and recovery of their tax claims. This assistance is not limited by Article 1^er. Assistance in the collection of taxes not covered by section 2 may be subject to special agreements.
2. The term "tax debt", as used in this article, means an amount due to the tax liability covered by this Convention, to the extent that the corresponding taxation is not contrary to the Convention, as well as the interests, administrative penalties and costs arising from the measures of conservatory or recovery related to these taxes.
3. Where a tax debt of a Contracting State that is recoverable under the laws of that State and is due by a person who, on that date, cannot, under these laws, prevent its recovery, that tax debt is, at the request of the competent authorities of that State, accepted for recovery by the competent authorities of the other Contracting State. Such tax debt shall be recovered by that other State in accordance with the provisions of its law applicable to the collection of its own taxes as if the debt in question was a tax debt of that other State.
4. Where a tax debt of a Contracting State is a debt in respect of which that State may, under its legislation, take interim measures to ensure its recovery, that debt shall, at the request of the competent authorities of that State, be accepted for the purpose of adopting interim measures by the competent authorities of the other Contracting State. This other State must take precautionary measures in respect of this tax debt in accordance with the provisions of its legislation as if it were a tax debt of that other State, even if, at the time that these measures are applied, the tax debt is not recoverable in the first State or is due by a person who has the right to prevent its recovery.
5. Notwithstanding the provisions of paragraphs 3 and 4, the limitation periods and the applicable priority, under the legislation of a Contracting State, to a tax claim because of its nature as such, do not apply to a tax claim accepted by that State for the purposes of paragraph 3 or 4. In addition, a tax debt accepted by a Contracting State for the purposes of paragraph 3 or 4 may not be applied any priority in that State under the law of the other Contracting State.
6. Procedures for the existence, validity or amount of a tax debt of a Contracting State shall not be submitted to the courts or administrative bodies of the other Contracting State.
7. Where at any time after a request has been made by a Contracting State under paragraph 3 or 4 and before the other State has recovered and transmitted the amount of the tax debt in question to the first State, that tax debt ceases to be
(a) in the case of an application under paragraph 3, a tax debt of the first State that is recoverable under the laws of that State and is due by a person who, at that time, cannot, under the laws of that State, prevent its recovery, or
(b) in the case of an application under paragraph 4, a tax debt of the first State in respect of which the State may, under its legislation, take interim measures to ensure its recovery.
The competent authority of the first State shall promptly notify the competent authority of the other State and the first State, at the choice of the other State, shall suspend or withdraw its application.
8. The provisions of this Article shall in no case be construed as imposing on a Contracting State the obligation:
(a) take administrative measures derogating from its legislation and administrative practice or those of the other Contracting State;
(b) take measures that would be contrary to public order;
(c) provide assistance if the other Contracting State has not taken all reasonable precautionary measures or recovery, as the case may be, that are available under its legislation or administrative practice;
(d) provide assistance in cases where the resulting administrative burden for that State is significantly disproportionate to the benefits that may be derived from it by the other Contracting State.
Rule 27
Members of diplomatic missions and consular posts
1. The provisions of this Convention shall not affect the tax privileges enjoyed by members of diplomatic missions or consular posts under either the general rules of international law or the provisions of special agreements.
2. The Convention does not apply to international organizations, their organs or officials, or to persons who are members of diplomatic missions or consular posts of a third State, where they are located in the territory of a Contracting State and are not treated as residents in one or the other Contracting State in respect of income or property taxes.
CHAPTER VII. - Final provisions
Rule 28
Entry into force
1. Each Contracting State shall notify the other State, by diplomatic means, of the fulfilment of the procedures required by its legislation with regard to the ratification of this Convention. The Convention shall enter into force on the date of receipt of the last notification.
2. The provisions of the Convention shall apply:
(a) taxes due to the source on income awarded or paid from 1^er January of the year immediately following that of the entry into force of the Convention;
(b) other taxes established or seated on taxable period income beginning on or after 1^er January of the year immediately following that of the entry into force of the Convention;
(c) tax on property established or seated on assets existing at 1^er January of any year after that of the entry into force of the Convention.
Rule 29
Amendments
1. The Contracting States may at any time amend this Convention on mutual consent in writing and through diplomatic means.
2. Amendments to the Convention shall be ratified in accordance with the procedures required by the domestic legislation of each Contracting State. The Contracting States shall notify themselves of the fulfilment of these procedures by diplomatic means.
3. The amendments will come into force on the date of receipt of the last notification.
Rule 30
Denunciation
1. This Convention shall remain in force until its denunciation by one of the Contracting States. Each Contracting State may denounce it by diplomatic means, with a written notice of denunciation addressed to the other Contracting State before 30 June of each year beginning after the 5th year following that of the entry into force of the Convention.
2. In this case, the Convention ceases to apply:
(a) taxes due to the source on income awarded or paid from 1^er January of the year immediately following the denunciation;
(b) other taxes established or seated on taxable period income beginning on or after 1^er January of the year immediately following the denunciation;
(c) tax on property established or seated on assets existing at 1^er January of any year following the denunciation.
In faith, the undersigned, duly mandated by their respective Governments, have signed this Convention.
Done in Brussels on 23 May 2007, in two originals, in French and Dutch, both texts being equally authentic. The French language text will prevail in the event of a discrepancy between the texts.
PROTOCOLE
At the time of the signing of the Convention between the Kingdom of Belgium and the Democratic Republic of the Congo to avoid double taxation and to prevent tax fraud and evasion in respect of income and capital taxes, the undersigned agreed on the following provisions which are an integral part of the Convention.
1. Ad article 3, paragraph 2:
The provisions of the Convention that are drafted in accordance with the corresponding provisions of the OECD Model Convention on Income and Capital are expected to have generally the same meaning as those given in the OECD Commentary. The previous sentence does not apply with respect to:
(a) reservations or observations made by each of the Contracting States on the OECD Model or its Comment;
(b) the contrary interpretations contained in this Protocol;
(c) any contrary interpretation contained in a comment published by one of the Contracting States and communicated to the competent authority of the other Contracting State before the entry into force of the Convention;
(d) any contrary interpretation agreed upon between the competent authorities after the entry into force of the Convention.
The OECD Commentary, as can be revised periodically, is a means of interpretation within the meaning of the Vienna Convention of 23 May 1969 on the Law of Treaties.
2. Ad Articles 10, 11 and 12:
If, by virtue of a preventive agreement of the double taxation concluded after the date of signature of this Convention, between the Democratic Republic of the Congo and a third country member of the European Union, the Democratic Republic of the Congo shall limit its imposition to the source on the dividends, on the interest or on the royalties at a lower rate, including, at the rates provided for in Article 10, paragraph 2, at Article 11, paragraph 2 and
3. Ad article 14, paragraph 1^er :
It is understood that an employee employment is exercised in a Contracting State where the activity because of which wages, salaries and other remuneration are paid is actually exercised in that State, i.e. when the employee is physically present in that State to exercise that activity.
4. Ad article 22, paragraph 2, (b):
The second paragraph of paragraph 2, (b) is not applicable to a resident of Belgium whose activities or investments in the Democratic Republic of the Congo are essential to misuse the provisions of that paragraph, i.e. when it is proven that activities or investments do not meet legitimate financial or economic needs. This is particularly the case when, before the end of the period or after the expiry of the period in which the exemption referred to in this paragraph of the Congolese tax is granted to a company that is a resident of the Democratic Republic of the Congo, a associated company, within the meaning of Article 9, the resident of the Democratic Republic of the Congo or Belgium, as the case may be, resumes the activities of the first corporation to benefit in the Democratic Republic of the New Congo.
5. The provisions of this Convention shall prevail over any previous special provision agreed between the two States.
In the belief that the undersigned, duly mandated by their respective Governments, have signed this Protocol.
Done in Brussels on 23 May 2007, in two originals, in French and Dutch, both texts being equally authentic. The French language text will prevail in the event of a discrepancy between the texts.