9 JANVIER 2006. - An Act to approve the Agreement in the form of an exchange of letters relating to the taxation of the income of savings between the Kingdom of Belgium and the British Virgin Islands, signed in Brussels on 5 October 2004 and in Tortola on 11 April 2005 (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 tax of savings income between the Kingdom of Belgium and the British Virgin Islands, signed in Brussels on 5 October 2004 and in Tortola on 11 April 2005, will come out its full and full effect.
Art. 3. The deduction to the source referred to in Articles 2 and 5 of the Agreement 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 the Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on the taxation of the income of savings in the form of payment of interest and amending the Tax Code on the income of 1992 in the matter of movable pre-payment. The terms and conditions for the application of this deduction to the source that are not regulated in the Agreement are regulated in accordance with the provisions of Part II of the said Law of 17 May 2004.
Promulgation of this law, let us 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 2005-2006 and 2004-2005.
Senate.
Documents. - Bill tabled on 5 September 2005, No. 3-1333/1. - Report, no. 3-1333/2.
Annales parliamentarians. - Discussion. Session of November 10, 2005. - Vote. Session of November 10, 2005.
House of Representatives.
Documents. - Project transmitted by the Senate, No. 51-2074/1, November 14, 2005. - Text adopted in plenary and subject to Royal Assent, No. 51-2074/2, 1^er December 2005.
Annales parliamentarians. - Discussion. Session of 1^er December 2005. - Vote. Session of 1^er December 2005.
(2) The provisions of the Agreement, provisionally implemented since 1^er July 2005 (= date of entry into force of Directive 2003/48/EEC), came into force on 1^er April 2006 in accordance with Article 16.

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 of "Agreement on the Taxation of Savings between the Government of the British Virgin Islands and each EU Member State required to apply the deduction to the source during the transition period, 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 the British Virgin Islands.
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 the British Virgin Islands
Sir,
I have the honour to acknowledge receipt of your letter of this day, which reads as follows:
"Mr.,
I refer to the text of the proposed model of "Agreement on the Taxation of Savings between the Government of the British Virgin Islands and each EU Member State required to apply the deduction to the source during the transition period, 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 comply as soon as possible with the said 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 the British Virgin Islands.
Please accept, sir, the assurance of our highest consideration."
I am able to confirm the agreement of the British Virgin Islands government on the content of your letter.
Please accept, sir, the assurance of my highest consideration.
For the British Virgin Islands,
Done in Tortola on 11 April 2005, in three French-language copies.
Appendix 1
C. Text of the model agreement
Agreement on the Taxation of Savings Income between the Government of the British Virgin Islands and the Government of the Kingdom of Belgium
Considering the following:
1. Article 17 of Directive 2003/48/EEC (hereinafter referred to as "the Directive") of the Council of the European Union (hereinafter referred to as the "Council") in respect of the taxation of savings income states that before 1^er January 2004, the Member States adopt and publish the necessary legislative, regulatory and administrative provisions to comply with the Directive, which they apply the provisions from 1^er January 2005 as long as:
"(i) the Swiss Confederation, the Principality of Liechtenstein, the Republic of San Marino, the Principality of Monaco and the Principality of Andorra shall, from that date, apply measures equivalent to those provided for in the Directive, in accordance with the agreements reached by these countries with the European Community, on unanimous decisions of the Council;
(ii) all agreements or other mechanisms shall be in place, providing that all the dependent or associated territories concerned shall apply, from that same date, the automatic exchange of information in the same manner as that provided for in Chapter II of the Directive (or, during the transitional period referred to in Article 10, shall apply a deduction to the source under the same conditions as those provided for in Articles 11 and 12). »
2. The British Virgin Islands ("hereinafter IVB") are not members of the European Union and are not part of the European tax territory, but the UK government has asked the IVB government to voluntarily apply the provisions of the directive.
3. The IVB notes that, if the final objective of the EU Member States is to allow "effective taxation of interest payments in the Member State where the beneficial owner has his tax residence through the exchange of information between the Member States concerning these interest payments, three Member States, namely Austria, Belgium and Luxembourg, will not be required, during a period of transition, to exchange information but will apply to savings
4. IVBs agreed to apply a deduction to the source from 1^er January 2005, provided that Member States have adopted the necessary legislative, regulatory and administrative provisions to comply with the Directive and that the conditions referred to in Article 17 of the Directive have been generally met.
5. IVBs agree to apply the automatic exchange of information in the same manner as that provided for in Chapter II of the Directive, beginning with the end of the transition period as defined in Article 10 of the Directive.
6. There are statutory provisions for collective investment organizations in the BVIs, which are deemed to be equivalent to those of the community-based legislation referred to in sections 2 and 6 of the Directive.
Therefore, the IVBs and the Kingdom of Belgium, below referred to as the "contracting party" or "contracting parties", unless the context opposes it, have agreed to conclude the following agreement, whose obligations are binding only to the contracting parties and which provides:
(a) that Contracting Parties shall apply, during the transition period referred to in Article 10 of the Directive, a deduction to the source from the same date and under the same conditions as those provided for in Articles 11 and 12 of the Directive,
(b) the Contracting Parties shall exchange information in accordance with the provisions of Article 13 of the Directive, and
(c) that a Contracting Party shall pay to the other Contracting Party 75% of the revenue generated by the deduction to the source applied under this Agreement,
in respect of interest payments made by a paying agent established in a contracting party to a resident natural person of the other contracting party.
Article 1^er
Definitions
For the purposes of this Agreement:
(a) » competent authority, when this expression is applied to the contracting parties,
(i) in the case of IVB, the Financial Secretary; and
(ii) in the case of the Kingdom of Belgium, the competent authority of that State within the meaning of Article 5 of the Directive;
(b) "Belgium", the Kingdom of Belgium;
(c) "residence of the beneficial owner", the country or territory or territory has its permanent address, subject to the conditions set out in section 7 (3) of the agreement;
(d) "OPCVM" means a collective investment organization authorized in accordance with Directive 85/611/EEC of 20 December 1985 that coordinates the legislative, regulatory and administrative provisions relating to securities pooling organizations.
Article 2
Retained at source by paying agents
Payments of interest as defined in Article 9 of this Agreement, which are made by a paying agent established in the jurisdiction of a contracting party to beneficiaries within the meaning of Article 6 of the Agreement, who are residents of the other contracting party, shall be subject, subject to Article 4, to a deduction on the amount of the payment of interest during the transition period referred to in Article 15 and The source retention rate is 15% during the first three years of the transition period, 20% for the next three years and 35% thereafter.
Article 3
Reporting information by paying agents
Where the provisions of Article 4, paragraph 1^er, point (a), are applicable, the paying agent shall communicate to the competent authority:
(a) the identity and residence of the beneficial owner established in accordance with Article 7 of this Agreement;
(b) the name or name and address of the payer;
(c) the beneficial owner's account number or, if not, the identification of interest-generating receivable;
(d) information regarding interest payments referred to in Article 5, paragraph 1^er the deal. However, each contracting party may limit the minimum content of the information that the paying agent is required to communicate with respect to the payment of interest in the total amount of interest or income and the total amount of the proceeds of the assignment, redemption or refund paid to the beneficial owner during the fiscal year.
Article 4
Exceptions to the source restraint system
(1) A contracting party, when collecting a deduction from the source in accordance with Article 2 of this Agreement, shall provide for one or two following procedures enabling the actual beneficiaries to request that such deduction be not applied:
(a) a procedure that allows the beneficial owner within the meaning of Article 6 of the agreement to avoid the deduction to the source provided for in Article 2 by expressly authorizing his paying agent to declare the payment of interest to the competent authority of the contracting party where the paying agent is established. This authorization covers all interest payments made to the beneficial owner by that payer;
(b) a procedure that ensures that the deduction to the source is not taken where the beneficial owner gives the payor a certificate established by the competent authority of the Contracting Party of Tax Residence in accordance with the provisions of paragraph 2.
(2) At the request of the beneficial owner, the competent authority of the Contracting Party of Tax Residence shall issue a certificate bearing the following statements:
(a) the name, address and tax identification number or, in the absence of such a number, the date and place of birth of the beneficial owner; and
(b) the name or name and address of the payer; and
(c) the beneficial owner's account number or, if not, the identification of the debt title.
This certificate is valid for a period not exceeding three years. It is issued to any beneficial owner who has made the application, within two months of the submission of the application. The certificate mentions the date of the application and the date of its issuance and is valid for payments made after the date of the application.
(3) When paragraph 1^er, point (a) is applicable, the competent authority of the Contracting Party where the payer is established shall communicate to the competent authority of the Contracting Party of residence of the beneficial owner the information referred to in Article 3 of the Agreement. The communication of this information shall be automatic and shall take place at least once a year, within six months after the end of the fiscal year in accordance with the legislation of the Contracting Party, for all interest payments made during that fiscal year.
Article 5
Restraint plate at source
(1) A paying agent established in a contracting party shall take the deduction to the source in accordance with Article 2 of the agreement and in the following manner:
(a) in the case of payment of interest within the meaning of Article 9, paragraph 1^er(a): the amount of interest paid or credited;
(b) in the case of payment of interest within the meaning of section 9, paragraph 1^er, points (b) or (d): on the amount of the interest or income referred to in these points or by a debit of effect equivalent to the charge of the consignee on the total amount of the proceeds of the assignment, redemption and refund as attested by the paying agent to its competent authority;
(c) in the case of payment of interest within the meaning of Article 9, paragraph 1^erpoint (c): on the amount of interest to that point;
(d) in the case of a payment of interest within the meaning of section 9, paragraph 4: on the amount of interest to each member of the entity referred to in section 8, paragraph 2, that meets the conditions set out in section 6, paragraph 1^er the agreement; and
(e) where a contracting party uses the option provided for in Article 9, paragraph 5: on the amount of annualized interest.
(2) For the purposes of paragraphs 1 (a) and (b)^erthe deduction to the source shall be taken pro rata from the period of detention of the debt by the beneficial owner. If the payor officer is unable to determine the period of detention on the basis of the information available to him, he considers that the beneficial owner held the debt for the entire period of his/her existence, unless the beneficial owner provides proof of the date of acquisition.
(3) The removal of a deduction to the source by the contracting party of the paying agent does not prevent the other contracting party of tax residence of the beneficial owner from imposing income in accordance with its national law.
4) During the transition period, the contracting party applying a deduction to the source may provide that an economic operator paying interest, or assigning the payment of interest, to an entity referred to in Article 8, paragraph 2, established in the other contracting party, shall be deemed to be the paying agent in place of the entity and shall withdraw the deduction to the source on such interest, unless the entity accepted
Article 6
Definition of "effective beneficiary"
(1) For the purposes of this Agreement, "actual beneficiary" means any natural person who receives a payment of interest or any natural person to whom a payment of interest is attributed, unless it can provide evidence that such payment has not been made or that it has not been allocated to it on its own behalf. A natural person is not considered to be the beneficial owner:
(a) if acting as a paying agent within the meaning of section 8, paragraph 1^er the agreement;
(b) if it acts on behalf of a legal person, an entity whose profits are taxed under the general provisions relating to the taxation of the undertakings, an UCITS authorized in accordance with Directive 85/611 /EEC, an equivalent collective investment agency established in the IVB or an entity referred to in Article 8, paragraph 2, and in the latter case communicates the competent authority and the address of that entity to the or
(c) if it acts on behalf of another natural person who is the beneficial owner and communicates to the paying agent the identity of that beneficial owner.
(2) Where a paying agent has information suggesting that a natural person who receives a payment of interest, or to which a payment of interest is awarded, may not be the beneficial owner, and where neither point (a) nor point (b) of subsection 1 are applicable, it shall take reasonable steps to establish the identity of the beneficial owner. If the payer is unable to identify the beneficial owner, the payer considers the natural person in question to be the beneficial owner.
Article 7
Identification and determination of place of residence of actual beneficiaries
(1) 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 this agreement and shall ensure their application in its territory. These procedures shall conform to the minimum standards set out in paragraphs 2 and 3.
(2) The payor officer shall determine the identity of the beneficial owner according to minimum standards that vary according to the beginning of the relationship between the payor agent and the interest recipient:
(a) in the case of contractual relations established before 1^er January 2004, the payer establishes the identity of the beneficial owner, expressed by his name and address, based on the information available to him, in particular in accordance with the regulations in force in his country of establishment and, in the case of the Kingdom of Belgium, the provisions of Council Directive 91/308/EEC of 10 June 1991 on the prevention of the use of the financial system for the purpose of money laundering or, in the case of the legislative provisions of the Equivalent Equivalent Equivalent Earning
(b) in the case of established contractual relations or transactions in the absence of contractual relations from 1^er January 2004, the payer establishes the identity of the beneficial owner, expressed by his name, address and, if any, his tax identification number assigned by the Member State of Tax Residence. These elements should be based on the passport or official identity card submitted by the beneficial owner. If it is not on this passport or on this official identity card, the address is based on any evidence submitted by the beneficial owner. If the tax identification number does not appear on the passport, on the official identity card or on any other evidence, including, eventually, the tax residence certificate, submitted by the beneficial owner, the identity is supplemented by the mention of the date and place of birth established on the basis of the passport or official identity card.
(3) The payor officer determines the actual beneficiary's residence according to minimum standards that vary depending on the beginning of the relationship between the payor agent and the interest recipient. Subject to the following, the residence is considered to be located in the country where the beneficial owner has his/her permanent address:
(a) in the case of contractual relations established before 1^er January 2004, the payor officer shall establish the residence of the beneficial owner according to the information available to him, in particular in accordance with the regulations in force in his country of establishment and, in the case of the Kingdom of Belgium, Directive 91/308/EEC or, in the case of IVBs, equivalent legislative provisions; and
(b) in the case of established contractual relations or transactions carried out in the absence of contractual relations beginning on the ter of January 2004, the paying agent shall establish the residence of the beneficial owner on the basis of the address mentioned in the passport or on the official identity card or, if necessary, on the basis of any evidence submitted by the beneficial owner, according to the following procedure: for natural persons with a passport or official identity card issued by If the certificate is not produced, it is considered that the residence is located in the Member State that has issued the passport or any other official identity document.
Article 8
Definition of paying agent
(1) For the purposes of this Agreement, "paying agent" means any economic operator who pays interest or assigns interest to the immediate benefit of the beneficial owner, whether that operator is the debtor of the interest producing the interest or the responsible operator speaks debtor or the beneficial owner of the interest or assigns the interest.
(2) Any entity established in the territory of a contracting party to which interest is paid or awarded for the benefit of the beneficial owner is also considered a paying agent at the time of payment or award of that payment. This provision does not apply if the economic operator has reason to believe, on the basis of official evidence submitted by the entity, that:
(a) the corporation is a legal entity, with the exception of the legal persons referred to in paragraph 5;
(b) its profits are taxed in accordance with the general provisions on corporate taxation; or
(c) this entity is an authorized UCITS in accordance with Council Directive 85/611/EEC or an equivalent collective investment organization established in IVBs.
An economic operator paying interest, or assigning the payment of interest, to such an entity established in the other contracting party and considered as a paying agent under this paragraph shall communicate the name and address of the entity and the total amount of interest paid or attributed to the entity, to the competent authority of the contracting party in which it is established; the latter then forwards this information to the competent authority of the Contracting Party where the entity is established.
(3) The entity referred to in paragraph 2 may, however, choose to be treated for the purposes of this agreement as an MVCO or an equivalent organization referred to in paragraph 2 (c). The use of this option is the subject of a certificate issued by the contracting party where the entity is established and handed over by that entity to the economic operator. The Contracting Parties shall establish the specific terms of this option for the entities established in their territory.
4) Where the economic operator and the entity referred to in paragraph 2 are established in the same Contracting Party, the Contracting Party shall take the necessary steps to ensure that the entity meets the provisions of this Agreement when acting as a payer.
5) The legal persons excluded from the application of paragraph 2 (a) are:
(a) in Finland: avoin yhtiö (Ay) and kommandiittiyhtiö (Ky)/öppet bolag and kommanditbolag;
(b) in Sweden: handelsbolag (HB) and kommanditbolag (KB).
Article 9
Definition of "interest payment"
(1) For the purposes of this Agreement, "interest payment" means:
(a) interest paid, or accounted for, in respect of receivables of any kind, whether or not provided with mortgage guarantees or a benefit-sharing clause of the debtor, including income from public funds and borrowing obligations, including premiums and lots attached to the debtor; late payment penalties are not considered interest payments;
(b) any accrued or capitalized interest obtained in the assignment, repayment or redemption of the receivables referred to in (a);
(c) income from interest payments, either directly or through an entity referred to in section 8, paragraph 2, distributed by:
(i) an OPCVM authorized in accordance with Council Directive 85/611/EEC;
(ii) an equivalent collective investment organization established in IVBs;
(iii) entities that benefit from the option under section 8, paragraph 3; or
(iv) collective investment bodies established outside the territory to which the Treaty establishing the European Community applies under Article 299 of that Treaty, and outside of the IVB; and
(d) the revenues made during the assignment, repayment or redemption of shares or units in the following organizations and entities, where they invest directly or indirectly through other collective investment organizations or entities listed below more than 40% of their assets in the receivables referred to in (a)
(i) an OPCVM authorized in accordance with Directive 85/611 /EEC; or
(ii) an equivalent collective investment organization established in IVBs;
(iii) entities that benefit from the option under section 8, paragraph 3; or
(iv) collective investment bodies established outside the territory to which the Treaty establishing the European Community applies under Article 299 of the Treaty, and outside of the IVB.
However, Contracting Parties may not include revenues referred to in point 1), (d), in the definition of interest payments only in the proportion that these revenues correspond to revenues that, directly or indirectly, come from interest payments within the meaning of points (a) and (b) of that article.
(2) With regard to paragraph 1^er, points (c) and (d) of this section, where a paying agent does not have any element regarding the share of income from interest payments, the overall amount of income is considered to be interest payments.
(3) With regard to paragraph 1^er, point (d) of this article, where a payer does not have any element regarding the percentage of assets invested in receivables or in shares or units as defined in this item, that percentage is considered to be greater than 40%. Where the income cannot be determined by the beneficial owner, the income is considered to be the proceeds of the assignment, refund or redemption of the shares or units.
4) Where interests as defined in paragraph 1^er shall be paid to an entity referred to in section 8, paragraph 2, or credited to an account of that entity and that that entity does not benefit from the option provided for in section 8, paragraph 3, such interest shall be deemed to be a payment of interest made by that entity.
5) With regard to paragraph 1^er, points (b) and (d), a contracting party has the option of requesting payment agents on its territory to annualize interest over a period not exceeding one year, and to process these annualized interest as interest payments even though no assignment, redemption or refund occurs during that period.
6) Derogation from paragraph 1^er, points (c) and (d), a Contracting Party may decide to exclude from the definition of the payment of interest any income referred to in these provisions from organizations or entities established in its territory when the investments of those organizations or entities in the receivables referred to in paragraph 1^er(a) do not exceed 15% of their assets. Similarly, by derogation from paragraph 4, a Contracting Party may decide to exclude from the definition of interest payment in paragraph 1^er interest paid or credited on an account of an entity referred to in section 8, paragraph 2, not entitled to the option provided for in section 8, paragraph 3, and established in its territory, where the investments of that entity in receivables referred to in paragraph 1^erpoint (a) does not exceed 15% of its assets. The use of this option by a contracting party implies compliance by the other contracting party.
7) From 1^er January 2011, the percentage referred to in paragraph 1^erand paragraph 3 will be 25 per cent.
8) Percentages referred to in paragraph 1^er, point (d) and paragraph 6 shall be determined on the basis of the investment policy as defined in the regulations or in the constituent documents of the organizations or entities concerned or, if not, on the basis of the actual composition of the assets of those organizations or entities.
Article 10
Sharing of income from deduction to source
(1) A contracting party that applies a deduction to the source retains 25 per cent of that deduction taken under this Agreement and transfers the remaining 75 per cent to the other contracting party.
(2) A contracting party that applies a deduction to the source in accordance with Article 5, paragraph 4 retains 25 per cent of the deduction and transfers the 75 per cent reliquest to the other contracting party.
(3) These transfers take place for each fiscal year in a single transaction no later than six months after the end of the fiscal year in accordance with the legislation of a contracting party.
4) The contracting party that applies a deduction to the source shall take the necessary measures to ensure the proper functioning of the revenue-sharing system.
Elimination of double taxation
Article 11
(1) The Contracting Party of Tax Residence of the beneficial owner shall ensure that all double taxation that may result from the application by a Contracting Party of the deduction to the source referred to in this Agreement is eliminated in accordance with the following provisions:
(a) where interest received by an effective beneficiary has been collected from a deduction to the source in a contracting party, the other contracting party shall grant a tax credit equal to the amount of that deduction in accordance with its domestic law. Where the amount exceeds the amount of the tax due in accordance with its domestic law, the other contracting party shall reimburse the beneficial owner for the difference in excess;
(b) where, in addition to the deduction to the source referred to in Article 5, the interest received by an effective beneficiary has been encumbered from any other deduction to the source and that the Contracting Party of Tax Residence grants a tax credit for that deduction to the source in accordance with its domestic law or dual taxation conventions, that other deduction to the source is credited before the application of the procedure referred to in point (a).
(2) The Contracting Party of Tax Residence of the beneficial owner may replace the tax credit mechanism referred to in paragraph 1^er a refund of the deduction to the source as provided for in Article 5 of this Agreement.
Article 12
Transitional provisions for negotiable debt securities
(1) During the transition period referred to in Article 15 of the Agreement, but no later than 31 December 2010, domestic and international obligations and other negotiable receivables whose original issuance is prior to 1 March 2001, or for which the original issuance prospectus has been referred before that date by the competent authorities within the meaning of Directive 80/390/EEC of the Council, or by the authorities responsible in third countries,^er, point a), provided that no new issuance of these negotiable receivables is made from 1^er March 2002. However, if the transition period extends beyond December 31, 2010, the provisions of this section shall not continue to apply in respect of negotiable receivables only:
(a) where such securities contain clauses of gross amount ("gross up") and advance refund; and
(b) where the paying agent as defined in Article 8 is established in a contracting party applying the deduction to the source and pays interest or assigns the payment of interest to the immediate benefit of an beneficial beneficial owner resident of the other contracting party.
If a new issue of one of the above-mentioned negotiable debt securities issued by a government or entity assimilated, acting as a public authority or whose role is recognized by an international treaty, as defined in the annex, is made from 1^er March 2002, the entire issuance of this title, namely, the original issue and any subsequent issuance, is considered to be the issuance of a debt title within the meaning of section 9, paragraph 1^er(a)
If a new issue of one of the above-mentioned negotiable debt securities issued by any other issuer not covered by the second paragraph is made from 1^er March 2002, this new program is considered to be the issuance of a debt title within the meaning of section 9, paragraph 1^er(a)
(2) This Article does not prevent Contracting Parties from imposing the revenues of the securities referred to in paragraph 1^erpursuant to their national legislation.
Article 13
Friendly procedure
When the implementation or interpretation of this Agreement results in difficulties or raises doubts, the contracting parties undertake to make every effort to resolve the matter amicably.
Article 14
Confidentiality
(1) All information provided or received by the competent authority of a Contracting Party shall be treated confidentially.
(2) The information provided to the competent authority of a Contracting Party may not be used for any purpose other than direct taxation without the prior written authorization of the other Contracting Party.
(3) The information provided shall be disclosed only to the persons or authorities concerned for the purposes of direct taxation, who use it solely for such purposes or for monitoring purposes, including to determine a possible remedy. For these purposes, information may be disclosed in a public hearing or other judicial proceedings.
4) Where the competent authority of a Contracting Party considers that the information received from the competent authority of the other Contracting Party may be useful to the competent authority of another Member State, it may transmit it to the competent authority of another Member State with the agreement of the authority which provided the information.
Article 15
Transition period
At the end of the transition period as defined in Article 10, paragraph 2, of the Directive, Contracting Parties shall cease to apply the deduction to the source/retention of tax and the sharing of revenues provided for in this Agreement and shall apply to the other Contracting Party the provisions relating to the automatic exchange of information in the same manner as that provided for in Chapter II of the Directive. Without prejudice to the provisions of Article 4 of the Agreement, if, during the transition period, one of the Contracting Parties chooses to apply the provisions relating to the automatic exchange of information in the same manner as that provided for in Chapter II of the Directive, it no longer applies the deduction to the source and the sharing of revenues provided for in Article 10 of this Agreement.
Article 16
Entry into force
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.
Article 17
Denunciation
(1) This Agreement shall remain in force until it has been denounced by a Contracting Party.
(2) Each Contracting Party may denounce this Agreement by written notification to the other Party, specifying the circumstances leading to that notification. In this case, the agreement ceases to be applicable twelve months after the notification.
Article 18
Application and suspension of application
(1) The application of this Agreement shall be subject to the adoption and implementation by all the Member States of the European Union and by the United States of America, Switzerland, Andorra, Liechtenstein, Monaco and San Marino, as well as by all the dependent or associated territories of the Member States of the European Community, respectively, of measures identical or equivalent to those provided for in the Directive or in this Agreement, and providing for the same dates of implementation.
(2) Subject to the amicable procedure provided for in Article 13, the application of this Agreement or parts thereof may be suspended with immediate effect by one of the contracting parties by notification to the other contracting party, specifying the circumstances that led to such notification, in case the directive ceases to be applicable either temporarily or permanently, in accordance with the law of the European Community, or in case a Member State suspends the application of its implementing legislation. The application of the agreement shall resume as soon as the circumstances leading to its suspension cease.
(3) Subject to the amicable procedure provided for in Article 13, each Contracting Party may suspend the application of this Agreement by notification to the other Contracting Party, specifying the circumstances that led to that notification, in the event that one of the third countries or territories referred to in paragraph 1^er ceases to apply the measures referred to in this paragraph. The suspension of the application takes place not earlier than two months after the notification. The application of the agreement shall resume as soon as the measures are restored by the third country or the territory in question.
Made in French, Dutch and English languages, all texts being equally authentic.
Annex
List of entities assimilated
For the purposes of Article 12, the following entities will be considered as an "assimilated entity", acting as a public authority or whose role is recognized by an international treaty:
Entities within the European Union
Belgium
- Vlaams Gewest (Flemish Region)
- Walloon Region
- Brussels Capital Region/Brussels Hoofdstedelijk Gewest
- French Community
- Vlaamse Gemeenschap (Flemish Community)
- Deutschsprachige Gemeinschaft (German speaking community)
Spain
- Xunta de Galicia (government of the autonomous community of Galicia)
- Junta de Andalucia (government of the autonomous community of Andalucia)
- Junta de Extremadura (government of the autonomous community of Extremadura)
- Junta de Castilla-La Mancha (government of the autonomous community of Castile-La Mancha)
- Junta de Castilla-León (government of the autonomous community of Castile-León)
- Gobierno Foral de Navarra (Government of the Autonomous Community of Navarre)
- Govern de les Illes Balears (government of the autonomous community of the Balearic Islands)
- Generalitat de Catalunya (government of the autonomous community of Catalonia)
- Generalitat de Valencia (government of the Autonomous Community of Valencia)
- Diputación General de Aragón (government of the autonomous community of Aragon)
- Gobierno de las Islas Canarias (Government of the Autonomous Community of the Canary Islands)
- Gobierno de Murcia (government of the autonomous community of Murcia)
- Gobierno de Madrid (government of the Autonomous Community of Madrid)
- Gobierno de la Comunidad Autónoma del Pais Vasco/Euzkadi (governance of the autonomous community of the Basque Country)
- Diputación Foral de Guipuzcoa (Gupuzcoa Provincial Council)
- Diputación Foral de Vizcaya/Bizkaia (Biscaye Provincial Council)
- Diputación Foral de Alava (Alava Provincial Council)
- Ayuntamiento de Madrid (commune of Madrid)
- Ayuntamiento de Barcelona (commune of Barcelona)
- Cabildo Insular de Gran Canaria (Council of the Island of Gran Canaria)
- Cabildo Insular de Tenerife (Council of the island of Tenerife)
- Instituto de Crédito Oficial (State Credit Office)
- Instituto Catalan de Finanzas (public financial institution of Catalonia)
- Instituto Valenciano de Finanzas (public financial institution of Valencia)
Greece
For the consultation of the table, see image
France
- Social Debt Relief Fund (CADES)
- Agence française de développement (AFD)
- Réseau ferré de France (RFF)
- National Motorway Fund (CNA)
- Public assistance hospitals in Paris (AP-HP)
- Charbonnages de France (CDF)
- Mining and chemical (EMC)
Italy
- Regions
- Provinces
- Communes
- Cassa Depositi e Prestiti (case of deposits and loans)
Latvia
- Pasvalida (local governments)
Poland
- gminy (communes)
- powiaty (districts)
- województwa (provinces)
- zwiazki gmin (community associations)
- zwiazki powiatów (district association)
- zwiazki województw (provincial association)
- miasto sto (flashzne Warszawa)
- Agencja Restrukturyzacji i Modernizacji Rolnictwa (Agriculture Restructuring and Modernization Agency)
- Agencja Nieruchomosci Rolnych (Agricultural Property Agency)
Portugal
- Regiao Autónoma da Madeira (Madeira Autonomous Region)
- Regiao Autónoma dos Açores (autonomous region of Azores)
- Communes
Slovakia
- mesta a obce (municipality)
- Zeleznice Slovenskej republiky (slovak railway company)
- Statny fond cestného hospodarstva (National Road Management Fund)
- Slovenské elektrarne (Slovak power stations)
- Vodohospodarska vystavba (Society for the wise use of water)
International
- European Bank for Reconstruction and Development
- European Investment Bank
- Asian Development Bank
- African Development Bank
- World Bank/BIRD/FMI
- International Finance Corporation
- Inter-American Development Bank
- Social Development Fund of the Council of Europe
- Euratom
- European Community
- Andean Development Corporation
- Eurofima
- European Coal and Steel Community
- Nordic Investment Bank
- Caribbean Development Bank
The provisions of Article 12 are without prejudice to any international undertaking to which Member States may have subscribed with respect to the above-mentioned international entities.
Third country
Entities that meet the following criteria:
(1) The entity is considered public according to national criteria;
(2) This public entity is a non-market producer who manages and finances a set of activities, consisting essentially of providing non-market goods and services to the community and on which public administrations exercise effective control;
(3) This public entity carries out debt emissions/titles at regular intervals and a considerable volume;
4) The State concerned is in a position to ensure that this public entity will not make an advance refund in case of crude clauses.