8 JUIN 2004. - An Act to assent to the Convention between the Government of the Kingdom of Belgium and the Government of Canada with a view to avoiding double taxation and preventing tax evasion in respect of income and capital taxes, and the Protocol, made in Ottawa on May 23, 2002 (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 Constution.
Art. 2. The Convention between the Government of the Kingdom of Belgium and the Government of Canada with a view to avoiding double taxation and preventing tax evasion in respect of income and property taxes, and the Protocol, made in Ottawa on 23 May 2002, will come out their full and full effect.
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 on 8 June 2004.
ALBERT
By the King:
Minister of Foreign Affairs,
L. MICHEL
Minister of Finance,
D. REYNDERS
Seal of the state seal:
The Minister of Justice,
Ms. L. ONKELINX
____
Notes
(1) Session 2003-2004.
Senate.
Documents
Bill tabled on 14 November 2003, No. 3-339/1.
Text adopted by the Commission, No. 3-339/2.
Annales parlementaire
Discussion, meeting of March 11, 2004.
Vote, meeting of 11 March 2004.
House of Representatives.
Documents
Project transmitted by the Senate, No. 51-913/1.
Text adopted in plenary and subject to Royal Assent, No. 51-913/2.
Annales parlementaire
Discussion, meeting of 6 May 2004.
Vote, meeting of 6 May 2004.
(2) This Convention comes into force on 6 October 2004.

Convention between the Government of the Kingdom of Belgium and the Government of Canada with a view to avoiding double taxation and preventing tax evasion in respect of income and wealth taxes
THE GOVERNMENT OF THE BELGIUM ROYAUME
AND
THE GOVERNMENT OF CANADA,
Desirous of concluding a Convention to avoid double taxation and to prevent tax evasion in respect of income and wealth taxes,
The following provisions were agreed:
I. THE CONVENTION ' s PAPLICATION CHAMP
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 each of the Contracting States, irrespective of the system of perception.
2. Taxes on total income, total property, or income or property, including taxes on gains from the alienation of movable or immovable property, as well as taxes on surplus-values, are considered income and property taxes.
3. Current taxes to which the Convention applies include:
(a) with regard to Belgium:
(i) the tax of natural persons;
(ii) corporate tax;
(iii) corporation tax;
(iv) non-resident's tax;
(v) the complementary contribution of crisis,
including pre-payments, additional centimes to these taxes and pre-payments, as well as additional taxes to the tax of natural persons,
(hereinafter referred to as "Belgian tax");
(b) with respect to Canada:
the taxes that are collected by the Government of Canada under the Income Tax Act,
(hereinafter referred to as "Canadian 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 respective tax laws.
II. DEFINITIONS
ARTICLE 3
General definitions
1. For the purposes of this Convention, unless the context requires a different interpretation:
(a) (i) the term "Belgium", used in a geographical sense, means the national territory, including the territorial sea and the maritime zones and the airspace on which Belgium exercises, in accordance with international law, sovereign rights or its jurisdiction;
(ii) the term "Canada", used in a geographical sense, means the territory of Canada, including:
(A) any area beyond the territorial sea of Canada that, under Canada's laws and in accordance with international law, is a region within which Canada may exercise rights to the bottom and basement of the sea and their natural resources;
(B) the sea and air space above any area referred to in clause (A) in respect of any activity continued in relation to the exploration or exploitation of the natural resources referred to therein;
(b) the terms "a Contracting State" and "the other Contracting State" mean, in the context, Belgium or Canada;
(c) the term "person" includes natural persons, corporations, partnership and other groupings of persons, including, in the case of Canada, estates and trusts;
(d) the term "corporate" means any corporation or other entity that is considered to be a corporation for taxation purposes;
(e) the terms "company of a Contracting State" and "company 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;
(f) the term "competent authority" means:
(i) in respect of Belgium, the Minister of Finance or its authorized representative, and
(ii) in respect of Canada, the Minister of National Revenue or its authorized representative;
(g) the term "national" means:
(i) any natural person who has the nationality of a Contracting State;
(ii) any legal person, partnership and association incorporated in accordance with the legislation in force in a Contracting State;
(h) the term "international traffic" means any travel by a ship or aircraft operated by a company of a Contracting State to carry passengers or goods, except where the main purpose of the voyage is to transport passengers or goods exclusively between points in the other Contracting State.
2. For the application of the Convention at any time by a Contracting State, any term or expression that is not defined therein shall, unless the context requires a different interpretation, the meaning assigned to it, at that time, the right of that State to the taxes to which the Convention applies, the meaning assigned to that term or expression by that right prevalent to 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:
(a) 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;
(b) that State or any of its political subdivisions or local authorities or any legal entity owned by that State or subdivision or community.
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 State where that person has the centre of its vital interests cannot be determined, or if it does not have a permanent home in any of the States, it is considered to be a resident only of the State where it normally resides;
(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 the person possesses 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, the competent authorities of the Contracting States shall, in common agreement, endeavour to determine the matter in respect of its effective headquarters, the place where it was constituted or created and all other relevant elements. In the absence of such an agreement, the person is considered to be a resident of any of the Contracting States for the purposes of Articles 6 to 22 inclusively.
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 twelve months.
4. The use, in a Contracting State, of a facility or tower or drilling vessel to explore or exploit natural resources is a permanent establishment only if such use extends for more than three months in any twelve-month period.
5. 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 belonging to the undertaking 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 company;
(e) a fixed business facility is used for the sole purpose of carrying out any other preparatory or auxiliary activity for the enterprise;
(f) a fixed business facility shall be used only for the purpose 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 this accumulated business shall be preparatory or auxiliary.
6. Notwithstanding the provisions of paragraphs 1^er and 2, where a person other than an agent enjoying an independent status to which paragraph 7 applies shall act on behalf of a business and shall, in a Contracting State, have powers that it normally exercises to enter into contracts on behalf of the undertaking, that undertaking shall be deemed to have a permanent establishment in that State for all the activities that that that person exercises for the enterprise, unless the activities of that person are limited to those that are
7. 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.
8. Notwithstanding the provisions of paragraphs 6 and 7, an insurance company of a Contracting State shall, except in respect of reinsurance, be deemed to have a permanent establishment in the other State if it receives premiums in that other State or ensures risks that are located therein by a representative referred to in paragraph 6 or through an agent with an independent status that has the powers that it normally exercises.
9. 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.
III. IMPOSITION OF REVENUS
ARTICLE 6
Real estate income
1. The income that a resident of a Contracting State derives from real property (including income from farms or forestry) located in the other Contracting State is taxable 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 revenues derived from direct exploitation, lease or charter, as well as any other form of exploitation of real property and income derived from the alienation of such property.
4. The provisions of paragraphs 1^er and 3 also apply to income from real property of a business as well as to income from real property used in the exercise of an independent profession.
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 or has exercised its business in such a way, the profits of the enterprise 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 an enterprise 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 with the enterprise of which it constitutes a permanent establishment and
3. In order to determine the profits of a permanent establishment, deductible expenses that are exposed for the purposes of this permanent establishment, including executive expenses and general administrative expenses so exposed, either in the State where the permanent establishment is located or elsewhere.
4. 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 tax may, inter alia, be established in that other State in accordance with its domestic legislation, taking into account the normal profits of similar undertakings, engaged in the same activity or similar activities under identical or similar conditions.
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 derived by an enterprise of a Contracting State from the operation, in international traffic, of ships or aircraft shall be taxable only in that State.
2. Notwithstanding the provisions of Article 7, profits not covered by paragraph 1^er and derived from the operation of vessels used to transport passengers or goods exclusively between points in a Contracting State may be taxed in that State.
3. The provisions of paragraphs 1^er and 2 also apply to benefits derived from participation in a pool, a joint operation or an international operating organization.
4. For the purposes of this article,
(a) the term "benefit" includes the interest of funds directly related to the operation, in international traffic, of ships or aircraft if such interests are incidental to operation;
(b) the term "operating ships or aircraft in international traffic" includes:
(i) charter or rental of vessels or aircraft, or
(ii) the rental of containers and related equipment,
by a company of a Contracting State provided that such charter or rental is incidental to the operation, in international traffic, of ships or aircraft by that undertaking.
ARTICLE 9
Associated companies
1. When:
(a) a business 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, income or 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 income or profits of that undertaking and imposed accordingly.
2. Where a Contracting State includes in the income or profits of a business of that State and therefore imposes on it income or profits on which a business of the other Contracting State has been taxed in that other State, and that the income or profits thus included are income or 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 tax the appropriate amount In determining this adjustment, other provisions of this Convention shall be taken into account.
3. A Contracting State shall not correct the income or profits of a business in the cases referred to in paragraph 1^er after the expiry of the time limits provided by its domestic law and, in no case, after the expiration of a period of six years from the end of the year in which the income or profits that would be the subject of such a rectification would have been realized by a company of that State.
4. The provisions of paragraphs 2 and 3 do not apply in the event of fraud or voluntary failure.
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) 5 per cent of the gross amount of dividends if the beneficial owner is a corporation that owns at least 10 per cent of the voting shares of the corporation that pays the dividends;
(b) 15 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 derived from shares, shares or benefits, shares of mine, share of founder or other share of beneficiaries except for receivables, as well as income even paid in the form of interest subject to the same tax regime as income from shares by the law of the State whose distribution 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 corporation is a resident, i.e., an industrial or commercial activity through a permanent establishment located therein, or an independent occupation by means of a fixed base located therein, and that the dividend-generating interest is effectively connected to it. In this case, the provisions of Article 7 or Article l4, as applicable, 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 may 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 or to a fixed base located in that other State, or prelever any
6. Nothing in this Convention shall be construed as precluding Canada to collect, on revenues attributable to stable establishments in Canada, a corporation that is a resident of Belgium, a tax that is in addition to the tax that would be applicable to the income of a corporation that is a resident of Canada, provided that the additional tax rate so established does not exceed 5 per cent of the amount of income that has not been subject to that tax For the purposes of this provision, the term "income" refers to the profits attributable to these permanent establishments in Canada (including gains from the alienation of property that is part of the assets of these permanent establishments referred to in paragraph 2 of section 13) in accordance with section 7, for the year in question and for previous years, after deducting:
(a) business losses attributable to these permanent establishments (including losses arising from the disposal of property that is part of the assets of these permanent establishments), for that year and for previous years;
(b) all taxes, other than the additional tax referred to in this subsection, that are collected in Canada on these profits;
(c) reinvested profits in Canada, provided that the amount of the deduction is determined in accordance with the existing provisions of Canada's legislation regarding the calculation of the investment allowance in property located in Canada, and any subsequent amendments to those provisions that would not affect the general principle; and
(d) five hundred thousand dollars ($ 500 000) less any amount deducted:
(i) by the corporation, or
(ii) by a person related to him or her because of an identical or similar undertaking to that carried out by the corporation,
under this subparagraph (d); within the meaning of this subparagraph (d), a corporation is connected to another corporation if one of these companies directly or indirectly controls the other, or if both companies are directly or indirectly controlled by the same person or persons, or if both companies have a bond of dependency between them.
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 1 per cent of the gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2, interest arising from a Contracting State and paid to a resident of the other Contracting State that is the beneficial owner of that Contracting State shall be taxable only in that other State if the interest is:
(a) paid due to a debt related to the sale to credit by a resident of that other State of any equipment, goods or services, unless the sale or debt takes place between related enterprises;
(b) paid to the other Contracting State or to any of its political subdivisions or local authorities;
(c) paid for a loan made, guaranteed or insured, or a credit granted, guaranteed or insured by "Exportation and Development Canada" in the case of Canada or, in the case of Belgium, by any similar institution specified and approved by exchange of letters between the competent authorities of the Contracting States.
4. The term "interest" used in this article refers to the income of receivables of any kind, whether or not accompanied by mortgage guarantees or a clause of participation in the profits of the debtor, including the income of public funds and obligations of borrowing, including the premiums and lots attached to these securities, as well as any other incomes assimilated to the revenues of money lent by the tax legislation of the State from which the revenues arise; However, the term "interest" does not include, for the purposes of this section, the penalties for late payments, the interests referred to in paragraph 4 of Article 8 or the interests referred to in paragraph 3 of Article 10.
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 interests arise, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the interest-generating debt is effectively connected to it. In this case, the provisions of Article 7 or Article 14, as applicable, 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, or a fixed base, 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 or fixed base 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 this case, the surplus portion of the payments shall remain taxable in the Contracting State in which the interest arises in accordance with the law of that State.
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. Notwithstanding the provisions of paragraph 2:
(a) royalties as copyrights and other similar remuneration relating to the production or reproduction of a literary, drama, musical or other artistic work (excluding royalties relating to film films and royalties relating to works recorded on films or videotapes or other means of reproduction for television broadcasting); and
(b) royalties for the use or concession of the use of a computer software or a patent or for information relating to an experience acquired in the industrial, commercial or scientific field (excluding any information of the kind provided in the context of a lease or franchising contract), from a Contracting State and paid to a resident of the other Contracting State that is the beneficial owner thereof, shall not be other
4. The term " royalties" used in this article means remuneration of any kind paid for the use or concession of the use of a copyright on a literary, artistic or scientific work, including remuneration of any kind relating to cinematographic films and works recorded on films, tapes or other means of reproduction intended for television, a patent, a trademark or trade,
5. The provisions of paragraphs 1^er, 2 and 3 shall not apply where the beneficial owner of the royalties, a resident of a Contracting State, exercises in the other Contracting State in which the royalties arise, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the right or property that generates royalties is effectively connected to it. In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
6. 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, or a fixed base, for which the obligation giving rise to the payment of royalties has been contracted and which bears the charge of such royalties, such royalties are considered to be from the State where the permanent establishment, or the fixed base, 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 royalties, in view of 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 this case, the surplus portion of the payments shall remain taxable in the Contracting State in which royalties arise in accordance with the law of that State.
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. The gains 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, or of movable property that belong to a fixed base of which a resident of a Contracting State disposes in the other Contracting State for the exercise of an independent profession, including such gains from the alienation of that permanent establishment (ully or with
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:
(a) shares (other than shares in a stock exchange approved in the other Contracting State) that are part of a substantial interest in the capital of a corporation that is a resident of either Contracting State and whose value of the shares is primarily derived from real property located in the other State; or
(b) an important interest in a partnership, trust or estate constituted under the laws of either Contracting State and whose value is derived principally from real property located in the other State,
may be taxed in that other State. For the purposes of this paragraph, the term "real property" includes the shares of a corporation referred to in paragraph (a) or an interest in a partnership, trust or estate referred to in paragraph (b) but does not include property (other than rental property) in which the corporation, partnership, trust or estate operates.
5. Gains from the alienation of all property other than those referred to in paragraphs 1^er, 2, 3 and 4 shall be taxable only in the Contracting State of which the assignor is a resident.
6. Where a natural person who, immediately after having ceased to be a resident of a Contracting State, becomes a resident of the other Contracting State is considered for purposes of taxation in the first State as having alienated a property and is imposed in that State for that alienation, it may choose, for purposes of taxation in the other State, to be considered as having sold and redeemed, immediately before becoming a resident of that State, However, this provision does not apply to property that would give rise, if it were alienated immediately before the natural person became a resident of that other State, to taxable gains in that other State, or to real property located in a third State.
ARTICLE 14
Independent occupations
1. The income that a natural person who is a resident of a Contracting State derives from a liberal profession or other activities of an independent character shall be taxable only in that State, unless that natural person normally has in the other Contracting State a fixed basis for the exercise of its activities. If it has, or has disposed of, such a fixed base, income is taxable in the other State but only to the extent that it is attributable to that fixed base.
2. The term "liberal profession" includes independent scientific, literary, artistic, educational or educational activities, as well as independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
ARTICLE 15
Dependent professions
1. Subject to the provisions of Articles 16, 18 and 19, wages, salaries and other remuneration that a resident of a Contracting State receives under an employee employment shall be taxable only in that State, unless 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 in any twelve-month period beginning or ending in the fiscal year 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 or a fixed base 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 16
Business leaders
1. The fortieth, attendance 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.
This provision also applies to remuneration received as a result of the performance of functions which, under the legislation of the Contracting State of which the corporation is a resident, are considered to be similar to those performed by a member of the board of directors or supervisors or a similar body of a corporation.
2. Compensation that a person referred to in subsection 1^er receives from a corporation that is a resident of a Contracting State because of the exercise of a day-to-day direction or technical activity shall be taxable in accordance with the provisions of Article 15 as if such remuneration were remuneration received by an employee for an employee's employment and as if the references to "the employer" were references to the corporation.
ARTICLE 17
Artists and athletes
1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State from his or her personal activities 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, 14 and 15, in the Contracting State where the activities of the artist or athlete are carried out.
3. The provisions of paragraph 2 shall not apply if it is established that neither the performer or the athlete, nor the persons associated with him, participate directly or indirectly in the profits of the person referred to in the paragraph.
ARTICLE 18
Pensions
1. Pensions and other similar allowances, whether periodic or not, from a Contracting State and paid in respect of employment prior to a resident of the other Contracting State are taxable in the Contracting State from which they arise. This provision also applies to pensions and allowances paid under a general regime organized by a Contracting State with the aim of supplementing the benefits provided by its social security legislation.
2. Notwithstanding the provisions of paragraph 1, amounts paid under social security legislation in a Contracting State and pensions of former combatant who are paid by a Contracting State to a resident of the other Contracting State shall be taxable only in the first State.
3. Maintenance pensions and other maintenance payments from a Contracting State and paid to a resident of the other Contracting State who is subject to the tax in respect of them shall be taxable only in that other State.
ARTICLE 19
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 beneficiary 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. The provisions of paragraph 1^er shall not apply to wages, salaries and other similar remuneration paid for services rendered in an industrial or commercial activity carried out by a Contracting State or any of its political subdivisions or local authorities.
ARTICLE 20
Students
The sums that a student or trainee who is, or who was immediately before going to a Contracting State, a resident of the other Contracting State and who resides in the first State for the sole purpose of pursuing his or her studies or training shall be paid to cover his or her maintenance, education or training expenses shall not be taxable in that State, provided that they arise from sources outside that State.
ARTICLE 21
Other income
1. Subject to the provisions of paragraph 2, the elements of the income 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. However, if these revenues are collected by a resident of a Contracting State and come from sources in the other Contracting State, they are also taxable in the State from which they arise and according to the law of that State. Where such income is income from a estate or trust, other than a trust that has received contributions for which a deduction has been granted, the tax so charged shall not exceed 5% of the gross amount of income provided that the income is taxable in the Contracting State of which the beneficial owner is a resident.
IV. IMPOSITION OF THE FORTUNE
ARTICLE 22
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 property constituted by movable property that is part of the asset of a permanent establishment that a business of a Contracting State has in the other Contracting State, or by movable property that is owned by a fixed base of which a resident of a Contracting State has in the other Contracting State for the exercise of an independent profession, is taxable in that other State.
3. Assets made by vessels and aircraft operated in international traffic by an enterprise of a Contracting State, or constituted by movable property assigned to the operation of such ships and aircraft, shall be taxable only in that State.
4. All other assets of a resident of a Contracting State shall be taxable only in that State.
V. METHODS FOR ELIMINATION OF IMPOSITION DOUBLES
ARTICLE 23
Elimination of double taxation
1. With regard to Belgium, double taxation is avoided as follows:
(a) Where a resident of Belgium receives income or owns property that is imposed in Canada in accordance with the provisions of this Convention, except those of Article 10, paragraph 2, paragraphs 2 and 7 of Article 11, paragraphs 2 and 7 of Article 12, and the second sentence of Article 21, paragraph 2, Belgium exempts tax from such income or property, but it may, in order to calculate the amount
(b) Subject to the provisions of Belgian law concerning the imputation on Belgian tax of taxes paid abroad, where a Belgian resident receives income elements that are included in his or her total income subject to Belgian tax and that consist of taxable dividends in accordance with paragraph 2 of Article 10 and not exempted from Belgian tax under paragraph (c) below, in taxable interest in accordance with paragraph 2 or 7 of that article
(c) The dividends that a corporation that is a resident of Belgium receives from a corporation that is a resident of Canada and that are taxable in Canada in accordance with paragraph 2 of Article 10 are exempted from the corporate tax in Belgium under the conditions and limits set out in Belgian law.
(d) Where, in accordance with Belgian law, losses incurred by a company operated by a resident of Belgium in a permanent establishment located in Canada have been effectively deducted from the profits of that undertaking for its taxation in Belgium, the exemption provided for in paragraph (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 have also been exempted from tax in Canada as a result of their compensation
(e) When a Belgian resident receives income to which the provisions of the second sentence of paragraph 2 of Article 21 apply and which have been imposed in Canada, the amount of the corresponding Belgian tax proportionally to those revenues cannot exceed the amount that would be collected under Belgian legislation if those revenues were taxed for professional income earned and imposed abroad.
2. For Canada, double taxation is avoided as follows:
(a) Subject to the existing provisions of Canadian legislation relating to the imputation of tax paid in a territory outside of Canada on Canadian tax payable and any subsequent amendments to those provisions that would not affect the general principle, and without prejudice to a more significant deduction or relief provided by Canadian legislation, the tax due in Belgium on the basis of profits, income or gains derived from Belgium is deducted from any Canadian tax due to
(b) Subject to the existing provisions of Canadian legislation relating to the taxation of revenues from a foreign affiliate and any subsequent amendments to these provisions, a corporation that is a resident of Canada may, for the purposes of Canadian tax, deduct in computing its taxable income any dividend received from the exempt surplus of a foreign affiliate that is a resident of Belgium.
(c) Where, in accordance with any provision of the Convention, the income that a resident of Canada receives or the fortune that he or she owns is tax-free in Canada, Canada may, however, in calculating the amount of tax on other income or on capital, take into account the exempt income or fortune.
(d) For the purposes of this paragraph, the profits, income or gains of a resident of Canada that are taxable in Belgium in accordance with the Convention shall be considered from sources in Belgium.
VI. SPECIAL PROVISIONS
ARTICLE 24
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^erphysical persons who are not residents of a Contracting State or both Contracting States.
2. 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.
3. Unless the provisions of paragraph 1^er of Article 9 or paragraph 7 of Article 12 shall not apply, royalties paid by an enterprise 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.
4. The term "tax" means, in this article, the taxes covered by this Convention.
ARTICLE 25
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 in writing to the competent authority of the Contracting State of which the person is a resident or, if the case falls under paragraph 1^er Article 24, to that of the Contracting State of which it has nationality. In order to be admissible, the case must be submitted within two years of the first notification of the measure which results in taxation not in accordance with the provisions of the Convention.
2. The competent authority referred to in paragraph 1^er endeavours, 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 friendly agreement with the competent authority of the other Contracting State, with a view to avoiding taxation not in conformity with the Convention.
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 the Convention.
5. The competent authorities of the Contracting States may communicate directly with each other for the purposes of the application of the Convention.
6. For the purposes of paragraph 3 of Article XXII (Consultation) of the General Agreement on Trade in Services, Contracting States agree that, notwithstanding the provisions of that paragraph, any disagreement between them on whether a measure falls within this Convention may be brought before the Council for Trade in Services, as provided for in that paragraph, only with the consent of the Contracting States. Any uncertainty as to the interpretation of this paragraph shall be resolved in accordance with paragraph 3 of this article or in the absence of any other procedure agreed upon by the Contracting States.
ARTICLE 26
Exchange of information
1. The competent authorities of the Contracting States shall exchange the relevant information for the application of the provisions of this Convention or those of the domestic legislation of the Contracting States relating to all taxes collected on behalf of the Contracting States to the extent that the taxation it provides is not contrary to the Convention. The exchange of information is not restricted by sections 1^er and 2. The information received by a Contracting State shall be kept secret in the same manner as the information obtained under the domestic legislation of that State and shall only be communicated to the persons or authorities (including the courts and administrative bodies) concerned by the establishment or collection of taxes, by the procedures concerning taxes, or by the decisions on the use of taxes. These individuals or authorities only use this information for these purposes. They may report this information at public court hearings or in judgments.
2. The provisions of paragraph 1^er in no case may be construed as imposing on a Contracting State the obligation:
(a) take administrative measures derogating from its legislation, 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.
ARTICLE 27
Miscellaneous provisions
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 provisions of the Convention shall not be construed as limiting in any way the exemptions, deductions, deductions, credits or other relief which are or shall be granted by the law of a Contracting State for the determination of the tax levied by that State.
3. No provision of the Convention may be construed as preventing Canada from levying a tax on amounts included in the income of a resident of Canada because of its participation in a trust or in a controlled foreign affiliate, pursuant to section 91 of the Income Tax Act, as may be amended without its general principle being changed.
4. The Convention does not apply to investment corporations owned by non-residents as defined in section 133 of the Canada Revenue Tax Act or any similar provision that would be adopted by Canada after the signing of the Convention, or to incomes that shareholders of such corporations receive from them.
5. The exemption provided for in paragraph 3 (b) of Article 12 shall not apply where the undertaking that benefits from royalties has, in a State that is not a Contracting State, a permanent establishment to which the royalties are attributable and when the royalties are subject, in the State of residence of the undertaking and in the State where the permanent establishment is located, to a tax that is attributable to the aggregated establishment The provisions of this paragraph shall not apply:
(a) if the royalties are connected or are incidental to an industrial or commercial activity carried out actively in the State that is not a Contracting State; or
(b) where Belgium is the State of residence of the company, the royalties imposed by Canada under section 91 of the Income Tax Act, as it may be amended without its general principle being changed.
6. Notwithstanding the provisions of paragraphs 2 and 3 of Article 11 and paragraphs 2 and 3 of Article 12, interest and royalties (excluding royalties to which paragraph 5 applies) from a Contracting State and paid to a resident of the other Contracting State shall be taxable in the first State at a rate not exceeding 15 per cent of the gross amount of interest and 10 per cent of the gross amount of royalties if
(a) such interest or royalties shall be received by a corporation and one or more persons who are not residents of that other Contracting State directly or indirectly, through one or more companies or otherwise, not less than 50 per cent of the capital of that corporation and, directly or indirectly, by direction or control thereof; and
(b) these interests or royalties are not subject to tax in the other State under the ordinary rules of its tax legislation.
VII. FINAL PROVISIONS
ARTICLE 28
Entry into force
1. This Convention shall be ratified and the instruments of ratification shall be exchanged in Brussels as soon as possible.
2. The Convention shall enter into force on the fifteenth day following that of the exchange of instruments of ratification and its provisions shall apply:
(a) Belgium:
(i) in respect of taxes due to the source, on the income awarded or paid from 1^er January of the year of the exchange of instruments of ratification;
(ii) in respect of other taxes, for any tax period ending on or after December 31 of the year of the exchange of instruments of ratification;
(b) in Canada:
(i) in respect of taxes withheld at the source, on amounts paid to non-residents or credited to them, from 1^er January of the year of the exchange of instruments of ratification;
(ii) in respect of other taxes, for any taxation year beginning on or after 1^er January of the year of the exchange of instruments of ratification.
3. The provisions of the Convention between Belgium and Canada to avoid double taxation and to address certain other income tax issues signed in Ottawa on 29 May 1975 shall cease to have effect on Belgian or Canadian taxes to which this Convention applies in accordance with paragraph 2.
ARTICLE 29
Denunciation
This Convention shall remain in force until it has been denounced by a Contracting State. Each Contracting State may, until 30 June inclusive of any calendar year from the fifth year following that of the exchange of instruments of ratification, give by diplomatic means a written notice of denunciation to the other Contracting State. In the case of denunciation before 1^er July of such a year, the Convention shall cease to apply:
(a) Belgium:
(i) in respect of taxes due to the source, on the income awarded or paid after December 31 of the year in which the notice of denunciation was given;
(ii) in respect of other taxes, for any tax period ending on or after December 31 of the year immediately following that in the course of which the notice of denunciation was given;
(b) in Canada:
(i) in respect of taxes withheld at the source, on amounts paid to non-residents or credited to them, after December 31 of the year in which the notice of denunciation was given;
(ii) in respect of other taxes, for any taxation year beginning on or after 1^er January of the year immediately following the year in which the notice of denunciation was given.
In the belief that the undersigned, duly authorized to do so by their respective Governments, have signed this Convention.
Done in double copies in Ottawa, May 23, 2002, in French, English and Dutch languages, the three texts being equally authentic.

PROTOCOLE
At the time of signing the Convention between the Government of the Kingdom of Belgium and the Government of Canada with a view to avoiding double taxation and preventing tax evasion in respect of income and capital taxes, the undersigned agreed on the following provisions which form an integral part of the Convention.
1. With regard to paragraph 1^er of Article 4:
It is understood that:
(a) for the purposes of the Convention to:
(i) income taxes, the term "taxable" refers to the subjection to income taxes and not to capital taxes;
(ii) capital taxes, the term "taxed" refers to the subjection to capital taxes and not to income taxes;
(b) the term "resident of a Contracting State" also includes:
(i) a corporation or other organization that is constituted and operated exclusively for the purposes of administering or providing benefits under one or more established funds or plans for the purpose of providing pension or pension benefits or other benefits to employees, which is generally exempt from tax in a Contracting State and that is a resident of that State under the law of that State;
(ii) a corporation or other organization that is operated exclusively for religious, charitable, scientific, educational or public purposes that is generally exempt from tax in a Contracting State and that is a resident of that State under the law of that State.
2. With respect to Article 10, paragraph 6:
The provisions of this subsection also apply in respect of revenues derived from the alienation of real property located in Canada, even in the absence of a permanent establishment in Canada, but only to the extent that such income is taxable in Canada under the provisions of section 6 or subsection 1^er Article 13.
3. With respect to paragraph 3 (a):
It is understood that the exemption provided for in this paragraph does not apply to interest that is paid in respect of a debt that has been created or acquired primarily in order to benefit from that provision and not for sincere economic reasons.
4. With respect to Article 12, paragraph 4:
It is understood that remuneration paid for technical assistance or technical services is not considered compensation paid for information relating to an experience gained in the industrial, commercial or scientific field but may be taxed in accordance with the provisions of section 7 or article 14, as appropriate.
5. With respect to paragraph 2 of Article 16:
The provisions of this paragraph also apply, in the case of Belgium, to remuneration received by a resident of Canada for his or her personal activity as a partner in a corporation other than a share corporation, which is a resident of Belgium.
6. With respect to Article 27, paragraph 6:
The provisions of paragraph 6 of section 27 shall not apply if:
(a) participation in the capital of the corporation that receives interest or royalties has been subscribed for sincere economic or financial reasons, and
(b) at the end of the taxation year or the taxable period referred to, the sum of the released capital and the taxed reserves of the corporation that receives the interest or royalties does not exceed 33 per cent of its debts.
In the belief that the undersigned, duly authorized to do so by their respective Governments, have signed this Protocol.
Made in double copies in Ottawa, May 23, 2002, in French, English and Dutch languages, each version being equally authentic.