9 JANVIER 2006. - An Act to approve the Agreement in the form of an exchange of letters relating to the automatic exchange of information concerning the income of savings in the form of interest payments between the Kingdom of Belgium and Anguilla, signed in Brussels on 5 October 2004 and in Anguilla on 17 November 2004 (1) (2)

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 Agreement in the form of an exchange of letters relating to the automatic exchange of information on the income of savings in the form of interest payments between the Kingdom of Belgium and Anguilla, signed in Brussels on 5 October 2004 and in Anguilla on 17 November 2004, will come out its full and full effect.
Art. 3. The deduction to the source referred to in Article 5 of the Convention corresponds, with respect to Belgium, to the deduction to the source, referred to in Article 4, § 1^er, of the law of 17 May 2004 transposing in Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union in the field of taxation of the income of savings in the form of payment of interest and amending the Tax Code on the income of 1992 with respect to household pre-payment. The terms and conditions for the application of this deduction to the source that are not regulated in the Convention are regulated in accordance with the provisions of Part II of the said Law of 17 May 2004.
Promulgate this law, order that it be clothed with the seal of the State and published by the Belgian Monitor.
Given in Brussels, 9 January 2006.
ALBERT
By the King:
Minister of Foreign Affairs,
K. DE GUCHT
Minister of Finance,
D. REYNDERS
Seal of the state seal:
The Minister of Justice,
Ms. L. ONKELINX
____
Notes
(1) Sessions 2004-2005 and 2005-2006.
Senat.
Documents. - Bill tabled on 5 September 2005, No. 3-1330/1. - Report, number 3-1330/2.
Annales parliamentarians. - Discussion, meeting of November 10, 2005. - Vote, meeting of 10 November 2005.
House of Representatives.
Documents. - Project transmitted by the Senate, No. 51-2071/1. - Report. - Text adopted in plenary and subject to Royal Assent, No. 51-2071/2.
Annales parliamentarians. - Discussion, meeting of December 1, 2005. - Vote, meeting of 1^er December 2005.
(2) The provisions of the Agreement, provisionally implemented since 1^er July 2005 (= date of the entry into force of Directive 2003/48/EEC), came into force on 1 July 2005^er April 2006, in accordance with article 12.

AGREEMENT
in the form of an exchange of letters relating to the taxation of savings income.
A. Letter from the Kingdom of Belgium
Sir,
I refer to the text of the proposed model "Convention between the Government of Anguilla and the Government of (Belgium, Austria or Luxembourg) on the automatic exchange of information concerning the income of savings in the form of interest payments", which was approved by the High-Level Group (taxation of savings) of the Council of Ministers of the European Union on 22 June 2004.
Given the above text, I have the honour
- to propose to you the agreement on the taxation of savings income contained in Appendix 1 to this letter;
- to propose that the provisions of the agreement be applied from the date of application of Council Directive 2003/48/EC of 3 June 2003 on the taxation of the income of the savings in the form of interest payments, a date subordinate to the conditions set out in Article 17 (2) of the Directive and to the mutual notification of the performance of the internal constitutional procedures required for the entry into force of the agreement;
- to propose to you a mutual commitment to carry out, as soon as possible, the internal constitutional procedures required for the entry into force of the agreement and to immediately notify the other party, through the official channels, of the fulfilment of these procedures.
I have the honour to suggest that, if the foregoing is acceptable to your government, this letter, its appendix and your confirmation together constitute an agreement between the Kingdom of Belgium and Anguilla.
Please accept, sir, the assurance of our highest consideration.
For the Kingdom of Belgium,
Minister of Finance
Done in Brussels on 5 October 2004, in three French-language copies.
B. Letter from Anguilla
Sir,
I have the honour to acknowledge receipt of your letter dated 5 October 2004, which reads as follows:
"Mr.,
I refer to the text of the proposed model "Convention between the Government of Anguilla and the Government of (Belgium, Austria or Luxembourg) on the automatic exchange of information concerning the income of savings in the form of interest payments", which was approved by the High-Level Group (taxation of savings) of the Council of Ministers of the European Union on 22 June 2004.
Given the above text, I have the honour
- to propose to you the agreement on the taxation of savings income contained in Appendix 1 to this letter;
- to propose that the provisions of the agreement be applied from the date of application of Council Directive 2003/48/EC of 3 June 2003 on the taxation of the income of the savings in the form of interest payments, a date subordinate to the conditions set out in Article 17 (2) of the Directive and to the mutual notification of the performance of the internal constitutional procedures required for the entry into force of the agreement;
- to propose to you a mutual commitment to carry out, as soon as possible, the internal constitutional procedures required for the entry into force of the agreement and to immediately notify the other party, through the official channels, of the fulfilment of these procedures.
I have the honour to suggest that, if the foregoing is acceptable to your government, this letter, its appendix and your confirmation together constitute an agreement between the Kingdom of Belgium and Anguilla.
Please accept, sir, the assurance of our highest consideration. »
I am able to confirm the Anguilla government's agreement on the content of your letter.
For Anguilla,
Minister of Finance
Done at Anguilla on November 17, 2004, in three French-language copies.
Appendix 1
C. Text of the Model Convention
Agreement between the Government of Anguilla and the Government of the Kingdom of Belgium on the automatic exchange of information regarding savings income in the form of interest payments
The Government of Anguilla and the Government of the Kingdom of Belgium, desiring to conclude a convention allowing the income of savings, in the form of interest payments made in one of the contracting parties in favour of actual beneficiaries who are natural persons having their residence in the other contracting party, to be effectively imposed in accordance with the legislative provisions of the latter contracting party, pursuant to Directive 2003/48/EC of the Council of the European Union of 3 June 2003
Article 1^er
Scope
1. This Agreement applies to interest paid by a paying agent established in the territory of one of the Contracting Parties in order to allow the income of savings, in the form of interest payments made in a contracting party in favour of actual beneficiaries who are natural persons with their tax residence in the other contracting party, to be effectively imposed in accordance with the legislative provisions of that Contracting Party.
2. The scope of this Agreement is limited to the taxation of savings income in the form of interest payments on receivables and excludes, inter alia, matters related to the taxation of pensions and insurance benefits.
Article 2
Definitions
1. For the purposes of this Convention, unless the context opposes it, it is understood that:
a. "a contracting party" and "the other contracting party", Anguilla or the Kingdom of Belgium, depending on the context;
b. "Guideline", Directive 2003/48/EC of the Council of the European Union, dated 3 June 2003, on the taxation of savings income in the form of interest payments, as it applies to the date of signature of this Agreement;
c. "Belgium", the Kingdom of Belgium;
d. "effective beneficiary", any beneficial owner within the meaning of section 2 of the directive;
e. "payer agent", any payor agent within the meaning of section 4 of the directive;
f. "competent authority",
i) in the case of Anguilla: the Comptroller of Inland Revenue.
(ii) in the case of the Kingdom of Belgium: the competent authority of that State within the meaning of Article 5 of the Directive;
g. "payment of interest", any payment of interest within the meaning of Article 6 of the Directive, without prejudice to the provisions of Article 15 of the Directive.
h. unless a term is otherwise defined in this agreement, it shall have the meaning given to it in the directive.
2. For the purposes of this Agreement, in the provisions of the directive to which this Agreement refers, the term "Member States" shall be read "contracting parties".
Article 3
Identification and determination of place of residence of actual beneficiaries
Each contracting party shall adopt the terms and conditions enabling the paying agent to identify the actual beneficiaries and their place of residence for the purposes of Articles 4, 5 and 6 and shall ensure their application in its territory. These terms and conditions shall be in accordance with the minimum standards set out in Article 3, paragraphs 2 and 3, of the Directive, except for Anguilla, with respect to paragraph 2, item (a), and paragraph 3, item (a), of that Article, the identity and residence of the beneficial owner shall be established according to the information that the paying agent has under the relevant legislative and regulatory provisions of Anguilla relating to the prevention of money.
Article 4
Automatic exchange of information
1. The competent authority of the Contracting Party in which the payer is established shall communicate to the competent authority of the other Contracting Party in which the beneficial owner resides, the information referred to in Article 8 of the Directive.
2. The disclosure of the information is automatic and must take place at least once a year, within six months after the end of the fiscal year of the contracting party of the paying agent, for all interest payments made during that fiscal year.
3. The Contracting Parties shall apply to the exchange of information provided for in this Agreement a treatment consistent with the provisions of Article 7 of Directive 77/799/EEC.
Article 5
Transitional provisions
1. During the transition period referred to in Article 10 of the Directive, where the beneficial owner is a resident of Anguilla and the paying agent is a resident of the Kingdom of Belgium, the Kingdom of Belgium takes a deduction to the source on interest payments of 15% during the first three years of the transition period, 20% for the next three years and 35% thereafter. During this period, the Kingdom of Belgium is not required to apply the provisions of Article 4. However, the Kingdom of Belgium receives information from Anguilla in accordance with the above-mentioned article.
2. The payor officer shall remove the deduction from the source as described in section 11, paragraphs 2 and 3, of the directive.
3. The removal of a deduction from the source by the Kingdom of Belgium does not prevent Anguilla from imposing income in accordance with its national law.
4. During the transition period, the Kingdom of Belgium may provide that an economic operator paying interest, or assigning interest payment, to an entity referred to in section 4, paragraph 2, of the directive, established in Anguilla, shall be considered to be the payor agent in place of the said entity and shall preclude the deduction to the source on such interest, unless the entity has formally agreed to
5. At the end of the transition period, the Kingdom of Belgium is required to apply the provisions of Article 4 and ceases to apply the deduction to the source and the sharing of revenues provided for in this provision and Article 6. If, during the transition period, the Kingdom of Belgium chooses to apply the provisions of section 4, it no longer applies the deduction to the source or the sharing of revenues provided for in this provision and section 6.
Article 6
Income-sharing
1. The Kingdom of Belgium retains 25% of the deduction receipt to the source referred to in Article 5, paragraph 1^er, and transfers 75% to Anguilla.
2. When the Kingdom of Belgium applies a deduction to the source in accordance with Article 5, paragraph 4, it retains 25% of the recipe and transfers to Anguilla 75% of the deduction to the source on interest paid to the entities referred to in Article 4, paragraph 2, of the directive established in Anguilla.
3. These transfers take place no later than six months after the end of the fiscal year of the Kingdom of Belgium.
4. The Kingdom of Belgium takes the necessary measures to ensure the proper functioning of the revenue-sharing system.
Article 7
Exceptions to the source restraint system
1. The Kingdom of Belgium provides either of the two or both procedures referred to in Article 13, paragraph 1^er, of the directive, allowing the actual beneficiaries to request that no deduction be applied.
2. At the request of the beneficial owner, the competent authority of the Contracting Party of Tax Residence shall issue a certificate in accordance with Article 13, paragraph 2, of the Directive.
Article 8
Elimination of double taxation
Anguilla ensures that all double taxation that may result from the application of the deduction to the source referred to in Article 5, in accordance with the provisions of Article 14, paragraphs 2 and 3, of the directive, or provides for a refund of the deduction to the source.
Article 9
Other sources
This Convention does not prevent Contracting Parties from taking deductions from the source other than the deduction referred to in Article 5 within the framework of their national provisions or conventions relating to double taxation.
Article 10
Transposition
Prior to January 2005, Contracting Parties shall adopt and publish the necessary legislative, regulatory and administrative provisions to comply with this Convention.
Article 11

Annex
The texts of the Directive and Article 7 of Directive 77/799/EEC of the Council of the European Union of 19 December 1977 concerning the mutual assistance of the competent authorities of the Member States in the field of direct and indirect taxes, as they apply to the date of the signature of this Convention and to which this Convention refers, are annexed to and form an integral part of the Convention. The text of section 7 of Directive 77/799/EEC set out in the annex will be replaced by the text of that same article as set out in the amended version of Directive 77/799/EEC, if it comes into force before the provisions of this Convention apply.
Article 12
Entry into force
1. This Agreement shall enter into force on the thirtieth day after the date on which the respective governments have notified each other in writing of the performance of the required constitutional procedures, and its provisions shall apply from the date of application of the Directive, in accordance with Article 17, paragraph 2 and 3, of the Directive.
2. Sections 4 to 7 of this Agreement do not apply to the Kingdom of Belgium in the absence of direct taxation to Anguilla.
Article 13
Denunciation
This Convention shall remain in force until it has been denounced by one of the Contracting Parties. Each party may denounce the convention by diplomatic means after a period of three years beginning on the date of its entry into force, by written notification at least six months before the end of a calendar year. In this case, the agreement no longer applies to periods beginning after the end of the calendar year in which the denunciation was notified.
Made in English, French and Dutch languages, all texts being equally authentic.

Annex
Text of Article 7 of Directive 77/799/EEC
Article 7
Secret provisions
1. All information which a Member State is aware by application of this directive is kept secret in that State, in the same way as the information collected under its national legislation. In any case, this information:
- are accessible only to persons directly affected by the tax establishment or by the administrative control of the tax establishment,
- shall be disclosed only on the occasion of a judicial procedure of a criminal procedure or a procedure involving the application of administrative sanctions, initiated for or in relation to the establishment or control of the tax establishment, and only to persons directly involved in such proceedings; it may, however, be referred to this information in public hearings or judgments, if the competent authority of the Member State that provides the information does not oppose it,
- are not, in any case, used other than for tax purposes or for the purposes of judicial proceedings, criminal proceedings or proceedings involving the application of administrative sanctions, incurred for or in connection with the establishment or control of the tax establishment.
In addition, Member States may provide that the information referred to in the first paragraph be used to establish other levies, duties and taxes under section 2 of Directive 76/308/EEC(1).
2. Paragraph 1 does not require a Member State whose legislation or administrative practice establish, for domestic purposes, a narrower limitation than those contained in that paragraph, to provide information if the State concerned does not undertake to respect these narrower limitations.
3. Derogation from paragraph 1^er, the competent authority of the Member State which provides the information may permit the use of this information for other purposes in the requesting State when, according to its own legislation, their use is possible for similar purposes in the same circumstances.
4. Where the competent authority of a Member State considers that the information it has received from the competent authority of another Member State may be useful to the competent authority of a third Member State, it may transmit it to the latter with the agreement of the competent authority which has provided it.
(1) OJ L 73 of 19 March 1976.