11 MARCH 2004. - An Act to assent to the Convention between the Kingdom of Belgium and Georgia to avoid double taxation and to prevent tax evasion in respect of income and property taxes, signed in Brussels on 14 December 2000 (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 Convention between the Kingdom of Belgium and Georgia to avoid double taxation and to prevent tax evasion in respect of income and wealth taxes, signed in Brussels on 14 December 2000, will come out its 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 11 March 2004.
ALBERT
By the King:
Minister of Foreign Affairs,
L. MICHEL
Minister of Finance,
D. REYNDERS
Seen and sealed the state seal:
The Minister of Justice,
Ms. L. ONKELINX
____
Note
(1) Session 2003-2004
Senate:
Documents. - Bill tabled on 26 November 2003, No. 3-364/1.
Documents. - Report, number 3-364/2. - Text adopted by the Commission, No. 51-631/2.
Annales parliamentarians. - Discussion, meeting of 17 December 2003. - Voting, meeting of 18 December 2003.
Chamber:
Documents. - Project transmitted by the Senate, No. 51-631/1.
Annales parliamentarians. - Discussion, meeting of 5 February 2004. - Vote, meeting of 5 February 2004.
(2) This Convention entered into force on 4 May 2004.

Agreement between the Kingdom of Belgium and Georgia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital
THE KINGDOM OF BELGIUM
AND
GEORGIA
Desiring to promote and strengthen the economic, cultural, scientific and technical relations between both States by concluding an Agreement for the avoidance of double taxation with respect to taxes on income and on capital have agreed as follows:
CHAPTER I. - Scope of the agreement
Article 1
Personal scope
This Agreement shall apply to persons who are residents of one or both of the Contracting States.
Article 2
Taxes covered
1. This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.
2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.
3. The existing taxes to which the Agreement shall apply are in particular :
(a) in Georgia:
(i) the companies profits (income) tax;
(ii) the personal profits (income) tax;
(iii) the companies property income tax;
(iv) the personal property income tax, (hereinafter referred to as "Georgian tax");
(b) in Belgium:
(i) the individual income tax;
(ii) the corporate income tax;
(iii) the income tax on legal entities;
(iv) the income tax on non-residents;
v) the supplementary crisis contribution, including the prepayments, the surcharges on these taxes and prepayments, and the supplements to the individual income tax, (hereinafter referred to as "Belgian tax").
4. The Agreement shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. At the end of each year, the competent authorities of the Contracting States shall notify each other of any substantial change which has been made in their respective taxation laws.
CHAPTER II. - Definitions
Article 3
General definitions
1. For the purposes of this Agreement, unless the context otherwise requires:
a) the term " Georgia" geographically means the territory of Georgia recognized by the international community within the state borders of Georgia, including internal waters and territorial sea, the air space above them, the exclusive economic zone and continental shelf adjacent to its sea coast in respect of which Georgia may exercise its sovereign rights in accordance with international law;
b) the term "Belgium" means the Kingdom of Belgium; used in a geographical sense, it means the territory of the Kingdom of Belgium, including the territorial sea and any other area in the sea and in the air within which the Kingdom of Belgium, in accordance with international law, exercises sovereign rights or its jurisdiction;
c) the terms "a Contracting State" and "the other Contracting State" mean Georgia or Belgium as the context requires;
(d) the term "person" includes an individual, a legal person and any other body of persons;
e) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes in the Contracting State of which it is a resident;
(f) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
(g) the term "international traffic" means any transport by a ship, aircraft or road vehicle operated by an enterprise which has its place of effective management in a Contracting State, except when the ship, aircraft or road vehicle is operated solely between places in the other Contracting State;
h) the term "place of effective management of the enterprise" means the place where the managing activity, the conduct of the affairs or the management of the interests of such enterprise take place;
i) the term "competent authority" means:
1. in Georgia the Minister of Finance or his duly authorised representative;
2. in Belgium, the Minister of Finance or his authorised representative.
(j) the term "national" means:
1. any individual possessing the nationality of a Contracting State;
2. any legal person, partnership and association deriving its status as such from the laws in force in a Contracting State.
2. As regards the application of the Agreement at any time by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Agreement applies; any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.
Article 4
Resident
1. For the purposes of this Agreement, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, duration of his stay, place of management or any other criterion of a similar nature. But this term does not include any person who is liable to tax in that State in respect only of income from sources in that State or capital situated therein.
2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:
a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);
b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;
(c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;
d) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.
3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated.
Article 5
Permanent establishment
1. For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
2. The term "permanent establishment" includes especially :
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop, and
(f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.
3. A building site or construction or installation project, or supervisory (including inspection) activities in connection therewith constitutes a permanent establishment only if it lasts more than 9 months.
4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:
a) the use of facilities solely for the purpose of the mere storage, display or delivery of goods or merchandise belonging to the enterprise;
(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of the mere storage, display or delivery;
(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of the mere processing by another enterprise;
(d) the maintenance of a fixed place of business solely for the purpose of the mere purchase of goods or merchandise, or of the mere collection of information, for the enterprise;
e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;
f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
5. Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent of an independent status to whom paragraph 6 applies - is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which undertake that person establishment that enterprise, unless the activities of such person are limited to those mentioned in paragraph 4
6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status provided that such persons are acting in the ordinary course of their business.
7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.
CHAPTER III. - Taxation of income
Article 6
Income from immovable property
1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.
2. The term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the consideration right to work, mineral deposits, sources and other natural resources; ships, aircraft and road vehicles shall not be regarded as immovable property.
3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.
Article 7
Business profits
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 situated therein. If the enterprise carries on business as aforesaid, the profits of the may be taxed in the other State but only so much of them as is 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 situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently.
3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses only insofar as they are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.
4. (a) Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an contributionionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an contributionionment as may be customary; the method of contributionionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article.
(b) In the absence of regular accounts or other proof which make it possible to determine the amount of profits of an enterprise of a Contracting State attributable to its permanent establishment situated in the other State, tax may be charged in that other State in accordance with the law of that State, account being taken of the normal profits of similar enterprises of the same State carrying on the same or similar activities under the same or similar conditions. Nevertheless if this method leads to double taxation of the same profits, the competent authorities of the two States shall consult together to avoid such double taxation.
5. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
6. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
7. Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.
Article 8
International transport
l. Profits from the operation of ships, aircraft or road vehicles in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
2. For the purpose of this Article, profits from the operation in international traffic of ships, aircraft or road vehicles shall include, as the case may be:
a) profits derived from the rental on a full basis of ships or aircraft and profits derived from the incidental rental on a bareboat basis of ships or aircraft operated in international traffic;
b) profits derived from the rental of containers or of road vehicles, if such profits are supplementary to profits to which the provisions of paragraph 1 apply.
3. If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.
4. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, joint business or an international operating agency.
Article 9
Associated enterprises
1. Where
a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State,
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b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,
and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have increasedd to one of the enterprises, but, by reason of those conditions, have not so increasedd, may be included in the profits of that enterprise and taxed accordingly.
2. Where a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have increasedd to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make such an adjustment as it considers appropriate to the amount of the tax charged there In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall if necessary consult each other.
Article 10
Dividends
1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed :
a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company which holds directly or indirectly at least 25 per cent of the capital of the company paying the dividends;
(b) 15 per cent of the gross amount of the dividends in all other cases.
This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
3. The term "dividends" as used in this Article means income from shares, "jouissance" shares or "jouissance" rights, mining shares, founders' shares or other rights not being debt-claims, participating in profits, as well as income - even paid in the form of interest - which is treated as income from shares by the tax legislation of the State of which the paying company is a resident.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other company or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the dividend's undistributed
Article 11
Interest
l. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2, interest shall be exempted from tax in the Contracting State in which it arises if it is:
a) interest on commercial debt-claims -including debt-claims represented by commercial paper- resulting from deferred payments for goods, goods or services supplied by an enterprise;
b) interest paid in respect of a loan made, guaranteed or insured or a credit extented, guaranteed or insured within the framework of a public scheme the objective of which is to promote the export;
c) interest on loans of any nature -not represented by bearer instruments- granted by a banking enterprise;
(d) interest paid to the other Contracting State.
4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage, and whether or not carrying a right to participate in the debtor's profits, and in particular income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. However, the term "interest" shall not include for the purpose of this Article penalty charges for late payment nor interest regarded as dividends under paragraph 3 of Article 10.
5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent services from a fixed base situated therein and the debt claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
6. Interest shall be deemed to arise in a Contracting State when the pay is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
7. Where, by reason of a special relationship between the pay and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the pay and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State.
Article 12
Royalties
l. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State if such resident is the beneficial owner of the royalties.
2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed :
a) 5 per cent of the gross amount of the royalties if the beneficial owner is an enterprise of that other Contracting State;
(b) 10 per cent of the gross amount of the royalties in all other cases.
3. The term "royalties" as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and films or tapes for television or radio broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.
4. The provisions of paragraph 1 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
5. Royalties shall be deemed to arise in a Contracting State when the pay is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
6. Where, by reason of a special relationship between the pay and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the pay and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State.
Article 13
Capital gains
1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.
2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment that (alone or with the whole enterprise) or of such fixed base, may be taxed in
3. Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3, shall be taxable only in the Contracting State of which the alienator is a resident.
Article 14
Independent personal services
1. Income derived by an individual who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purposes of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributable to that fixed base.
2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15
Dependent personal services
1. Subject to the provisions of Articles 16, 18, and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.
2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:
a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the taxable period concerned, and
b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and
c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship, aircraft or road vehicle operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.
Article 16
Company managers
1. Directors' fees or other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.
The preceding provision shall also apply to payments derived in respect of the discharge of functions which, under the laws of the Contracting State of which the company is a resident, are regarded as functions of a similar nature as those exercised by a person referred to in the said provision.
2. Remuneration derived by a person referred to in paragraph 1 from a company which is resident of a Contracting State in respect of the discharge of day-to-day functions of a managerial or technical nature and remuneration received by a resident of a Contracting State in respect of his personal activity as a partner of a company, other than a company with share capital, which is a resident of a Contracting State, may be taxed in accordance with the provisions of Article 15, as if such remuneration were
Article 17
Artists and sportsmen
1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artist, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.
2. Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such increaseds not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.
Article 18
Pensions
1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State.
2. However, pensions and other allowances, periodic or non periodic, paid under the social security legislation of a Contracting State may be taxed in that State. This provision also applies to pensions and allowances paid under a public scheme organised by a Contracting State in order to supplement the benefits of that legislation.
Article 19
Government service
1. a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
b) However, such salaries, wages and other remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:
(i) is a national of that State; gold
ii) did not become a resident of that State solely for the purpose of rendering the services.
2. (a) Any pension paid by, or out of funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.
3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration, and to pensions, in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof.
Rule 20
Students
Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State.
Article 21
Professors, teachers and scientific researchers
1. Any remuneration paid to professors, teachers and scientific researchers who are residents of a Contracting State and who are present in the other Contracting State solely for the purpose of teaching or carrying on scientific research at an officially recognized university or educational institution shall be exempt from tax in that other State for a period not exceeding two years from the date of arrival of these persons in that other State.
2. This article shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons.
Article 22
Other income
1. Items of income of a resident of a Contracting State not dealt with in the foregoing Articles of this Agreement shall be taxable only in the Contracting State where such items arise. However, items of income arising from sources outside the Contracting States shall be taxable only in the Contracting State where the recipient is a resident.
2. Notwithstanding the provisions of paragraph 1, items of income of a resident of a Contracting State not dealt with in the foregoing articles of the Agreement and arising in the other Contracting State may also be taxed in the first-mentioned State if these items are not taxed in the other Contracting State.
CHAPTER IV. - Taxation of capital
Article 23
Capital
1. Capital represented by immovable property referred to in Article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State.
2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or by movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State.
3. Capital represented by ships or aircraft operated in international traffic and by movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
4. All other elements of capital of a resident of a Contracting State shall be taxable only in that State.
CHAPTER V. - Methods for elimination of double taxation
Article 24
Elimination of double taxation
1. In the case of Georgia, double taxation shall be avoided as follows:
(a) Where a resident of Georgia derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in Belgium, Georgia shall, subject to the provisions of paragraphs b) and c), exempt such income or capital from tax.
(b) Where a resident of Georgia derives items of income which, in accordance with the provisions of Articles 10, ll and 12, may be taxed in Belgium, Georgia shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Belgium. Such deduction shall not, however, exceed that part of the Georgian tax, as computed before the deduction is given, which is attributable to such items of income derived from that other State.
(c) Where in accordance with any provision of the Agreement income derived or capital owned by a resident of Georgia is exempt from tax in that State, Georgia may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.
2 In the case of Belgium, double taxation shall be avoided as follows:
(a) Where a resident of Belgium derives income or owns elements of capital which are taxed in Georgia in accordance with the provisions of this Agreement, other than those of paragraph 2 of Article 10, of paragraphs 2 and 7 of Article 11 and of paragraphs 2 and 6 of Article 12, Belgium shall exempt such income or such elements of capital from tax but may, in calculating the amount of tax on the remaining income or capital of that resident, apply the rate of tax which would have been applicable if
(b) Subject to the provisions of Belgian law regarding the deduction from Belgian tax of taxes paid abroad, where a resident of Belgium derives items of his aggregate income for Belgian tax purposes which are dividends, and not exempt from Belgian tax according to subparagraph c) hereinafter, interest, or royalties, the Georgian tax levied on that income shall be allowed as a credit against Belgian tax relating to such income.
(c) Dividends, derived by a company which is a resident of Belgium from a company which is a resident of Georgia, shall be exempt from the corporate income tax in Belgium under the conditions and within the limits provided for in Belgian law.
(d) Where, in accordance with Belgian law, losses incurred by an enterprise carried on by a resident of Belgium in a permanent establishment situated in Georgia, have been effectively deducted from the profits of that enterprise for its taxation in Belgium, the exemption provided for in sub-paragraph a) shall not apply in Belgium to the profits of other taxable periods attributable to that establishment to the extent that those profits have also been exempted from tax in Georgia by reason of compensation for the said losses.
CHAPTER VI. - Special provisions
Rule 25
Non-discrimination
1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States.
2. Stateless persons who are residents of a Contracting State shall not be subjected in either Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of the State concerned in the same circumstances are or may be subjected.
3. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.
4. Except where the provisions of paragraph 1 of Article 9, paragraph 6 of Article 11, or paragraph 4 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as if they had been contracted to a resident of the first-mentioned State.
5. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.
6. The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description.
Rule 26
Mutual agreement procedure
1. Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 25, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Agreement.
2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.
3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement.
4. The competent authorities of the Contracting States shall agree on administrative measures necessary to carry out the provisions of the Agreement and particularly on the proofs to be furnished by residents of either Contracting State in order to benefit in the other State from the exemptions or reductions in tax provided for in the Agreement.
5. The competent authorities of the Contracting States shall communicate directly with each other for the application of the Agreement. When it seems advisable in order to reach an agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States.
Rule 27
Exchange of information
1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by the Agreement insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Article 1. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Agreement. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.
2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:
a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or the other Contracting State;
c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public).
Rule 28
Aid in recovery
1.The Contracting States shall lend aid and assistance to each other in order to notify and recover the taxes referred to in Article 2 as well as overcharges, additions, interest, costs and fines of a non penal nature.
2. At the request of the competent authority of a Contracting State, the competent authority of the other Contracting State shall secure, in accordance with the legal provisions and regulations applicable to the notification and recovery of the said taxes of the latter State, the notification and the recovery of tax claims referred to in paragraph 1 which are due in the first mentioned State. Such claims shall not have any priority in the requested State and that State shall not be obliged to apply any means of enforcement which are not authorised by the legal provisions or regulations of the applicant State.
3. Requests referred to in paragraph 2 shall be supported by an official copy of the instrument permitting the execution, accompanied where appropriate, by an official copy of any final administrative or judicial decision.
4. With regard to tax claims which are open to appeal, the competent authority of a Contracting State may, in order to safeguard its rights, request the competent authority of the other Contracting State to take the protective measures provided for in the laws of that other State; the provisions of paragraphs 1 to 3 shall apply mutatis mutandis to such measures.
5. The provisions of paragraph 1 of Article 27 shall also apply to any information which, by virtue of this Article, is supplied to the competent authority of a Contracting State.
Rule 29
Diplomatic agents and consular officers
1. Nothing in this Agreement shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements.
2. For the purposes of the Agreement, persons who are members of diplomatic missions or consular posts of a Contracting State in the other Contracting State or in a third State and who are nationals of the sending State, shall be deemed to be residents of the sending State if they are subjected therein to the same obligations in respect of taxes on income and on capital as are residents of that State.
3. The Agreement shall not apply to international organisations, to organs or officials thereof and to persons who are members of diplomatic missions or consular posts of a third State, being present in a Contracting State and not treated in either Contracting State as residents in respect of taxes on income or on capital.
CHAPTER VII. - Final provisions
Rule 30
Entry into force
1. Each Contracting State shall notify the other Contracting State of the completion of the procedures required by its laws for the bringing into force of this Agreement. The Agreement shall enter into force on the fifteenth day after the date of the latter of these notifications.
2. The provisions of the Agreement shall have effect :
a) with respect to taxes due at source on income credited or payable on or after January 1 of the year next following the year in which the Agreement entered into force;
b) with respect to other taxes charged on income of taxable periods ending on or after December 31 of the year next following the year in which the Agreement entered into force;
c) with respect to taxes on capital charged on elements of capital existing on January 1 of any year following the year in which the Agreement entered into force.
3. The provisions of Article 11 of the Agreement between the Belgo-Luxemburg Economic Union and the Republic of Georgia on the reciprocal promotion and protection of investments, done at Brussels on June 23, 1993, shall not apply with respect to taxes on income and on capital for which the present Agreement has effect.
Rule 31
Termination
This Agreement shall remain in force until terminated by a Contracting State but either Contracting State may terminate the Agreement, through diplomatic channels, by giving to the other Contracting State, written notice of termination not later than the 30th June of any calendar year from the fifth year following that in which the Agreement entered into force. In the event of termination before July 1 of such year, the Agreement shall apply for the last time:
a) with respect to taxes due at source on income credited or payable at latest on December 31 of the year in which the notice of termination is given;
b) with respect to other taxes charged on income of taxable periods ending before December 31 of the year next following the year in which the notice of termination is given;
c) with respect to taxes on capital charged on elements of capital existing on January 1 of the year in which the notice of termination is given.
In witness whereof the undersigned, being duly authorized thereto by their respective Governments, have signed this Agreement.
Done at Brussel this 4^th day of December 2000, in duplicate in the English language.

Convention between the Kingdom of Belgium and Georgia to avoid double taxation and to prevent tax evasion in respect of income and wealth taxes
GEORGIA
AND
BELGIUM,
Desiring to promote and strengthen economic, cultural, scientific and technical relations between the two States by the conclusion of a Convention to avoid double taxation in respect of taxes on income and on capital, have agreed on the following provisions:
CHAPTER I^er. - Scope of the convention
Article 1^er
PERSONS
This Convention applies to persons who are residents of a Contracting State or both Contracting States.
Article 2
IMPOTS VISES
1. This Convention applies to taxes on income and on property collected on behalf of a Contracting State, its political subdivisions or local authorities, irrespective of the system of perception.
2. The taxes on total income, total property, or income or property, including taxes on earnings from the alienation of movable or real estate property, taxes on the total amount of wages paid by companies, as well as taxes on surplus-values, are considered income and property taxes.
3. Current taxes to which the Convention applies include:
(a) Georgia:
(i) corporate profits tax (income) (the companies profits (income) tax);
(ii) tax on profits (income) of natural persons (the personal profits (income) tax);
(iii) corporate income tax (the companies property income tax);
(iv) tax on the income of natural persons' fortune (the personal property income tax);
(hereinafter referred to as "Georgian tax");
(b) Belgium:
(i) the tax of natural persons;
(ii) corporate tax;
(iii) corporate tax;
(iv) non-resident tax;
(v) the complementary contribution of crisis;
Includes pre-payments, additional centimes to these taxes and pre-payments, and additional taxes to the tax of natural persons,
(hereinafter referred to as "Belgian tax").
4. The Convention also applies to taxes of an identical or similar nature that would be established after the date of signature of the Convention and that would be in addition to or replace existing taxes. The competent authorities of the Contracting States shall, at the end of each year, communicate the significant changes to their respective tax laws.
CHAPTER II. - Definitions
Article 3
GENERAL DEFINITIONS
1. For the purposes of this Convention, unless the context requires a different interpretation:
(a) the term "Georgia" refers to the whole territory of Georgia within the borders of the State - including internal waters and territorial waters, as well as the exclusive economic zone and the continental shelf - on which Georgia, in accordance with international and national law, exercises its jurisdiction or sovereign rights and applies its tax legislation;
(b) the term "Belgium" means the Kingdom of Belgium; employed in a geographical sense, it designates the territory of the Kingdom of Belgium, including the territorial sea and the maritime areas and the airspace on which, in accordance with international law, the Kingdom of Belgium exercises sovereign rights or jurisdiction;
(c) the terms "a Contracting State" and "the other Contracting State" shall, in accordance with the context, designate Georgia or Belgium;
(d) the term "person" includes natural persons, legal persons and all other groupings of persons;
(e) the term "society" means any corporation or entity that is considered to be a legal entity for purposes of taxation in the Contracting State of which it is a resident;
(f) 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;
(g) the term "international traffic" means any carriage by a ship, aircraft or road vehicle operated by a company whose effective steering seat is located in a Contracting State, except where the ship, aircraft or road vehicle is operated only between points in the other Contracting State;
(h) the term "effective corporate management seat" refers to the location where the managerial activity, business conduct or the management of the interests of the business is taking place;
(i) the term "competent authority" means:
1. In Georgia, the Minister of Finance or his duly authorized representative;
2. In Belgium, the Minister of Finance or its authorized representative;
(j) the term "national" means:
1. Any natural person with the nationality of a Contracting State;
2. Any legal person, partnership or association constituted in accordance with the legislation in force in a 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 by that State in respect of the taxes to which the Convention applies, the meaning assigned to that term or expression by the tax law of that State in respect of the meaning assigned to it by the other branches of the law of that State.
Article 4
RESIDENT
1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the law of that State, is subject to tax in that State, because of his domicile, residence, length of stay, management seat or any other similar criterion. However, this term does not include persons who are subject to tax in that State only for income from sources located in that State or for the property situated therein.
2. Where, according to the provisions of paragraph 1, a natural person is a resident of the two Contracting States, his or her situation shall be 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. Where, according to the provisions of paragraph 1, a person other than a natural person is a resident of the two Contracting States, it is considered to be a resident only of the State where its effective management seat is located.
Article 5
STABLE FULLING
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 assembly site, or monitoring (including inspection) activities, is a permanent establishment only if its duration exceeds 9 months.
4. Notwithstanding the preceding provisions of this article, it is considered that there is no "stable establishment" if:
(a) the use of facilities for the sole purpose of storage, simple exposure or simple delivery of goods owned by the company;
(b) goods belonging to the enterprise are stored for the sole purpose of storage, simple exposure or simple delivery;
(c) goods belonging to the enterprise are stored for the sole purpose of the simple transformation by another company;
(d) a fixed business facility is used for the sole purpose of simply buying goods or simply gathering 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.
5. Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent enjoying an independent status to which paragraph 6 applies - shall act on behalf of a business and shall have in a Contracting State powers that it normally exercise to enter into contracts on behalf of the enterprise, that undertaking shall be deemed to have a permanent establishment in that State for all activities that that that person exercises for the enterprise, unless
6. A business is not considered to have a permanent establishment in a Contracting State solely because it operates in it through a broker, a general commissioner or any other agent with an independent status, provided that such persons act within the ordinary framework of their business.
7. The fact that a corporation that is a resident of a Contracting State controls or is controlled by a corporation that is a resident of the other Contracting State or that operates therein (either through a permanent establishment or not) is not sufficient in itself to make any of these companies a permanent establishment of the other.
CHAPTER III. - Income tax
Article 6
REVENUS IMMOBILIERS
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, aircraft and road vehicles are not considered real property.
3. The provisions of paragraph 1 shall apply to income derived from direct exploitation or enjoyment, lease or charter, as well as any other form of exploitation of real property.
4. The provisions of paragraphs 1 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
BENEFICES DES ENTREPRISES
1. The profits of an enterprise of a Contracting State shall be taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located therein. If the company operates in such a way, the profits of the company are taxable in the other State but only to the extent that they are attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3, where a business of a Contracting State carries on business in the other Contracting State through a permanent establishment located therein, it shall be charged, in each Contracting State, to that permanent establishment the profits that it could have realized if it had constituted a separate undertaking carrying out identical or similar activities under identical or similar conditions and acting independently.
3. In order to determine the profits of a permanent establishment, the expenses are allowed in deduction only to the extent that they are exposed for the purposes of this permanent establishment, including the executive expenses and general administrative expenses so exposed, or in the State where the permanent establishment is located, or elsewhere.
4. (a) if it is used in a Contracting State to determine the profits attributable to a permanent establishment on the basis of a distribution of the total profits of the enterprise between its various parties, no provision in paragraph 2 shall prevent that Contracting State from determining the taxable profits according to the distribution in use; However, the method of distribution adopted must be such that the result obtained is consistent with the principles contained in this article.
(b) In the absence of regular accounting or other evidence to determine the amount of profits of a business of a Contracting State, which is attributable to its permanent establishment located in the other State, the tax may, inter alia, be established in that other State in accordance with its own legislation, taking into account the normal profits of similar enterprises of the same State, engaging in the same activity or similar activities under identical or similar conditions. However, if this method results in a double taxation of the same profits, the competent authorities of the two states agree to avoid this double taxation.
5. No profit is charged to a permanent establishment because it simply purchased goods for the company.
6. For the purposes of the preceding paragraphs, the benefits to be charged to the permanent establishment are determined annually on the same basis, unless there are valid and sufficient grounds to proceed otherwise.
7. Where profits include income elements treated separately in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.
Article 8
INTERNATIONAL TRANSPORT
1. The profits derived from the operation, in international traffic, of ships, aircraft or road vehicles shall be taxable only in the Contracting State where the effective management seat of the enterprise is located.
2. For the purposes of this section, profits from the international operation of ships, aircraft or road vehicles shall include, as the case may be:
(a) profits from the rental of vessels or aircraft, armed and equipped, and benefits from the occasional bare hull rental of ships or aircraft operated in international traffic;
(b) profits from the rental of containers or road vehicles, provided that these benefits are complementary to the benefits to which the provisions of paragraph 1 are applicable.
3. If the effective management seat of a marine navigation company is on board a vessel, that seat shall be considered to be located in the Contracting State where the vessel's port of attachment is located, or if the vessel is not carrying the vessel, in the Contracting State of which the vessel operator is a resident.
4. The provisions of paragraph 1 also apply to benefits derived from participation in a pool, a joint operation or an international operating organization.
Article 9
ENTREPRISES ASSOCIEES
1. When
(a) A company of a Contracting State shall participate directly or indirectly in the direction, control or capital of a business of the other Contracting State,
Or that
(b) the same persons directly or indirectly participate in the direction, control or capital of a business of a Contracting State and a business of the other Contracting State,
And that, in both cases, both companies are, in their commercial or financial relations, bound by agreed or imposed conditions, that differ from those that would be agreed between independent companies, the profits that, without these conditions, would have been realized by one of the companies but could not be in fact because of these conditions, may be included in the profits of that undertaking and imposed accordingly.
2. When a Contracting State includes in the profits of a company of that State - and therefore imposes on it profits on which a company of the other Contracting State has been imposed in that other State, and that the profits thus included are profits that would have been realized by the enterprise of the first State if the terms agreed between the two enterprises had been those that would have been agreed between independent enterprises, the other State shall make the adjustment that it considers appropriate of the tax To determine this adjustment, the other provisions of this Convention shall be taken into account and, if necessary, the competent authorities of the Contracting States shall consult.
Article 10
DIVIDENDS
1. Dividends paid by a corporation that is a resident of a Contracting State to a resident of the other Contracting State shall be taxable in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the corporation paying the dividends is a resident, and according to the law of that State, but if the person receiving the dividends is the beneficial owner, 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 holds directly or indirectly at least 25 per cent of the capital 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 from shares, shares or benefits, shares of mine, share of founder or other share of beneficiaries with the exception of receivables, as well as incomes - even attributed in the form of interest - subject to the same tax regime as income from shares by the tax legislation of the State whose debiting society is a resident.
4. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the dividends, a resident of a Contracting State, exercises in the other Contracting State whose dividend paying company is a resident, 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 dividend-generating interest is effectively connected to it. In this case, the provisions of Article 7 or Article 14, 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
Article 11
INTERETS
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 person receiving the interest is the beneficial owner, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2, interest shall be exempted from tax in the Contracting State from which it arises when it is:
(a) interest in commercial receivables - including those represented by trade effects - resulting from the long-term payment of goods, products or services provided by a business;
(b) interest paid as a result of a loan or credit granted, guaranteed or insured under a general regime whose purpose is to promote exports;
(c) interest in loans of any kind not represented by bearer securities and granted by bank companies;
(d) interest paid to the other Contracting State.
4. The term "interest" used in this section refers to the income of receivables of any kind, whether or not accompanied by mortgage guarantees or an interest clause in the debtor's profits, including income from public funds and borrowing obligations, including premiums and lots attached to these securities. However, this term does not include, within the meaning of this section, penalties for late payment or interest treated as dividends under section 10, paragraph 3.
5. The provisions of paragraphs 1, 2 and 3 shall not apply where the beneficial owner of the interest, a resident of a Contracting State, carries on in the other Contracting State in which the interest arises, 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 linked 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 that State itself, a political subdivision, a local authority or 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 such cases, the surplus portion of the payments shall be taxable according to the law of each Contracting State.
Article 12
REDEVANCES
1. Royalties from a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State, if that resident is the beneficial owner of the property.
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:
(a) 5 per cent of the gross amount of royalties if the beneficial owner is a business of that other Contracting State;
(b) 10 per cent of gross royalties in all other cases.
3. The term "debtedness" used in this article means the remuneration of any kind paid for the use or concession of the use of a copyright on a literary, artistic or scientific work, including film films and films or tapes registered for radio or television, a patent, a trademark or trade mark, a drawing or a model, a plan, a business line
4. The provisions of paragraph 1 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.
5. The royalties shall be deemed to come from a Contracting State when the debtor is that State itself, a political subdivision, a local authority or 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 contract giving rise to the payment of royalties has been concluded and which bears the charge of such royalties, these shall be deemed to be from the State where the permanent establishment or fixed base is located.
6. Where, because of special relations between the debtor and the beneficial owner or between the debtor and the other person maintain with third persons, the amount of royalties, taking into account the benefit for which they are paid, exceeds the amount agreed upon by the debtor and the beneficial owner in the absence of such relations, the provisions of this section apply only to the latter amount. In this case, the surplus portion of the payments shall be taxable according to the law of each Contracting State.
Article 13
GAINS EN CAPITAL
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. Gains derived from the alienation of ships or aircraft operated in international traffic, or movable property assigned to the operation of such ships or aircraft, shall be taxable only in the Contracting State where the effective management seat of the enterprise is located.
4. Gains derived from the alienation of any property other than those referred to in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the assignor is a resident.
Article 14
INDEPENDENT PROFESSIONS
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 resident normally has in the other Contracting State a fixed basis for the exercise of his or her activities. If it has such a fixed base, income may be taxed in the other State but only to the extent that it is attributable to that fixed base.
2. The term "professional liberal" includes independent scientific, literary, artistic, educational or educational activities, as well as independent activities of doctors, lawyers, engineers, architects, dentists and accountants.
Article 15
PROFESSIONS
1. Subject to the provisions of Articles 16, 18 and 19, wages, salaries and other similar remuneration that a resident of a Contracting State receives under an employee employment shall be taxable only in that State, unless 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, the remuneration of a resident of a Contracting State in respect of an employee employed in the other Contracting State shall be taxable only in the first State if:
(a) the beneficiary stays in the other State for a period or periods not exceeding a total of 183 days during any period of twelve months beginning or ending during the tax period under review, and
(b) compensation shall be paid by an employer or on behalf of an employer who is not a resident of the other State, and
(c) the pay charge is not borne by a permanent establishment 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, aircraft or road vehicle operated in international traffic shall be taxable in the Contracting State where the effective management seat of the enterprise is located.
Article 16
SOCIETY DIRIGEANTS
1. The fortieth, presence tokens and similar remuneration that a resident of a Contracting State receives as a member of the board of directors or supervision of a corporation that is a resident of the other Contracting State may be taxed in that other State.
The foregoing provision also applies to remuneration received because of the performance of functions which, under the legislation of the Contracting State whose company is a resident, are treated as functions of a nature similar to those exercised by a person referred to in that provision.
2. The remuneration that a person referred to in paragraph 1 shall receive from a corporation that is a resident of a Contracting State because of the exercise of a daily activity of direction or technical character and the remuneration that a resident of a Contracting State derives from his or her personal activity as a partner in a corporation other than a corporation by shares, that is a resident of a Contracting State, shall be taxable in accordance with the provisions of the Article
Article 17
ARTISTS AND SPORTIFS
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.
Article 18
PENSIONS
1. Subject to the provisions of Article 19, paragraph 2, pensions and other similar remuneration paid to a resident of a Contracting State for an earlier job shall be taxable only in that State.
2. However, pensions and other allowances, periodic or unpaid, paid in accordance with the social legislation of a Contracting State are taxable in that State. This provision also applies to pensions and allowances paid under a general regime organized by a Contracting State to supplement the benefits provided by that legislation.
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 natural person is a resident of that State who:
(i) has the nationality of that State, or
ii) did not become a resident of that State for the sole purpose of rendering the services.
2. (a) Pensions paid by a Contracting State or any of its political subdivisions or local authorities, either directly or by debiting from funds that they have constituted, to a natural person, for services rendered to that State or to that subdivision or community, shall be taxable only in that State.
(b) However, such pensions shall be taxable only in the other Contracting State if the natural person is a resident of that State and has its nationality.
3. The provisions of Articles 15, 16, 17 and 18 apply to salaries, salaries and other similar remuneration, as well as to pensions, paid for services rendered in the context of an industrial or commercial activity carried out by a Contracting State or one of its political subdivisions or local authorities.
Rule 20
ETUDIANTS
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
PROFESSORS, OTHER MEMBERS OF PERSONNEL ENSIGNING AND SCIENTIFIC HEADERS
1. Any remuneration of the professors, other members of the teaching staff and scientific researchers, residents of a Contracting State, who reside in the other Contracting State for the sole purpose of teaching or conducting scientific research in a university or other officially recognized educational institution, shall be exempted from tax in that other State for a period not exceeding two years from the date of arrival of such persons in that other State.
2. This section does not apply to income from research where such work is undertaken not in the general interest but primarily for the personal benefit of one or more specified persons.
Article 22
OTHER REVENUS
1. The income of a resident of a Contracting State who is not covered in the preceding articles of this Convention shall be taxable only in the Contracting State from which they arise. However, income elements from sources outside the Contracting States are taxable only in the Contracting State of which the beneficiary is a resident.
2. Notwithstanding the provisions of paragraph 1, the income elements of a resident of a Contracting State that are not dealt with in the preceding articles of the Convention and that come from the other Contracting State shall also be taxable in the first State if such elements are not imposed in the other Contracting State.
CHAPTER IV. - Imposition of fortune
Article 23
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 ships or aircraft operated in international traffic, as well as by movable property assigned to the operation of such ships or aircraft, shall be taxable only in the Contracting State where the effective management seat of the enterprise is located.
4. All other assets of a resident of a Contracting State shall be taxable only in that State.
CHAPTER V. - Methods to eliminate double taxation
Article 24
ELIMINATION OF THE IMPOSITION DOUBLE
1. With regard to Georgia, double taxation is avoided as follows:
(a) Where a resident of Georgia receives income or has property that, in accordance with the provisions of this Convention, is taxable in Belgium, Georgia exempts such income or fortune from tax, subject to the provisions of (b) and (c).
(b) Where a resident of Georgia receives income elements that, in accordance with the provisions of sections 10, 11 and 12, are taxable in Belgium, Georgia grants, on the tax it receives on the income of that resident, a deduction of an amount equal to the tax paid in Belgium. However, this deduction cannot exceed the fraction of Georgian tax, calculated before deduction, corresponding to those incomes received from that other State.
(c) Where, in accordance with any provision of the Convention, the income that a resident of Georgia receives or the fortune that he or she owns is tax-free in that State, Georgia may, however, to calculate the amount of tax on the remainder of the income or fortune of that resident, take into account the exempt income or fortune.
2. With regard to Belgium, double taxation is avoided as follows:
(a) When a Belgian resident receives income or owns assets that are taxed in Georgia in accordance with the provisions of this Convention, with the exception of those of articles 10, paragraph 2, 11, paragraphs 2 and 7, and 12, paragraphs 2 and 6, Belgium exempts from tax these incomes or assets, but it may, to calculate the amount of its taxes on the rest of the income or fortune of that resident, apply the same rate if
(b) Subject to the provisions of Belgian law relating to the imputation on Belgian tax of taxes paid abroad, where a Belgian resident receives income elements that are included in his overall income subject to Belgian tax and which consist of a Belgian tax-free dividend under (c) below, in interest or royalties, the Georgian tax collected on these revenues is charged on Belgian tax.
(c) The dividends that a corporation that is a resident of Belgium receives from a corporation that is a resident of Georgia are exempted from the corporate tax in Belgium, under the conditions and limits provided by Belgian legislation.
(d) Where, in accordance with Belgian law, losses incurred by a company operated by a resident of Belgium in a permanent establishment located in Georgia have been effectively deducted from the profits of that undertaking for its taxation in Belgium, the exemption provided for in (a) does not apply in Belgium to the profits of other taxable periods attributable to that establishment, to the extent that such profits have also been exempted from tax in Georgia due to their compensation with
CHAPTER VI. - Special provisions
Rule 25
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 State are or may be subject to the same situation. This provision also applies, notwithstanding the provisions of Article 1, to persons who are not residents of a Contracting State or both Contracting States.
2. Stateless persons who are residents of a Contracting State shall not be subject in either Contracting State to any taxation or relative obligation that is other or heavier than those to which nationals of the State concerned are or may be subject in the same situation.
3. The imposition of a permanent establishment that a business of a Contracting State has in the other Contracting State is not established in that other State in a less favourable manner than the taxation of the enterprises of that other State that exercise the same activity. This provision shall not be construed as requiring a Contracting State to grant personal deductions, deductions and tax reductions to the residents of the other Contracting State on the basis of the situation or family expenses that it grants to its own residents.
4. Unless the provisions of Article 9, paragraph 1, of Article 11, paragraph 6, or of Article 12, paragraph 4, are applicable, the interest, royalties and other expenses paid by a business of a Contracting State to a resident of the other Contracting State shall be deductible, for the determination of the taxable profits of that undertaking, under the same conditions as if they had been paid to a resident of the first Contracting State. Similarly, the debts of an enterprise of a Contracting State to a resident of the other Contracting State shall be deductible, for the determination of the taxable fortune of that undertaking, on the same basis as if they had been contracted to a resident of the first Contracting State.
5. The undertakings of a Contracting State, whose capital is wholly or partly, directly or indirectly, held or controlled by one or more residents of the other Contracting State, shall not be subject in the first State to any taxation or obligation relating thereto, which is other or heavier than those to which the other similar enterprises of the first State are or may be subject.
6. The provisions of this section shall apply, notwithstanding the provisions of section 2, to taxes of any kind or denomination.
Rule 26
AMIABLE PROCEDURE
1. Where a person considers that the measures taken by a Contracting State or by the two Contracting States shall result in or result in taxation not in accordance with the provisions of this Convention, the person may, independently of the remedies provided by the domestic law of those States, submit his case to the competent authority of the Contracting State of which he or she is a resident or, if his or her case falls under Article 25, paragraph 1, to that of the Contracting State of which he or she is a national. The case shall be submitted within three years after the first notification of the measure that results in taxation not in conformity with the provisions of the Convention.
2. The competent authority shall endeavour, if the request appears to it to be founded and if it is not itself able to make a satisfactory solution to it, to resolve the case by amicable agreement with the competent authority of the other Contracting State, with a view to avoiding taxation not in conformity with the Convention. The agreement shall be applied irrespective of the time limits provided by the domestic law of the Contracting States.
3. The competent authorities of the Contracting States shall endeavour, by mutual agreement, to resolve the difficulties or to dispel the doubts to which the interpretation or application of the Convention may take place.
4. The competent authorities of the Contracting States shall agree on the administrative measures necessary for the implementation of the provisions of the Convention and in particular on the justifications to be provided by the residents of each Contracting State for the benefit in the other State of the exemptions or tax reductions provided for in this Convention.
5. The competent authorities of the Contracting States shall communicate directly with each other for the purposes of the Convention. If oral exchanges seem to have to facilitate this agreement, these exchanges of views may take place within a Commission composed of representatives of the competent authorities of the Contracting States.
Rule 27
ECHANGE OF INFORMATION
1. The competent authorities of the Contracting States shall exchange the information necessary to implement the provisions of this Convention or those of the domestic legislation of the Contracting States relating to the taxes covered by the Convention to the extent that the taxation it provides is not contrary to the Convention. The exchange of information is not restricted by section 1. 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 the taxes referred to in the Convention, by the procedures or prosecutions relating to such taxes, or by the decisions on remedies relating to such 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. In no case shall the provisions of paragraph 1 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.
Rule 28
ASSISTANCE TO RECOVER
1. The Contracting States undertake to lend each other assistance and assistance in order to notify and recover the taxes referred to in Article 2 as well as any additional increments, interests, fees and fines without a criminal character.
2. Upon request by the competent authority of a Contracting State, the competent authority of the other Contracting State shall, in accordance with the legal and regulatory provisions applicable to the notification and recovery of such taxes of that Contracting State, notify and recover the tax claims referred to in paragraph 1, which are payable in the first State. These claims do not enjoy any privilege in the requested State and the requested State is not required to apply enforcement means that are not authorized by the legal or regulatory provisions of the requesting State.
3. The requests referred to in paragraph 2 shall be supported by an official copy of the enforceable titles, accompanied, if purchased, by an official copy of the administrative or judicial decisions passed in force of the evidence.
4. With respect to tax claims that are subject to appeal, the competent authority of a Contracting State may, in order to safeguard its rights, request the competent authority of the other Contracting State to take the precautionary measures provided for in the legislation of the other Contracting State; the provisions of paragraphs 1 to 3 shall apply, mutatis mutandis, to these measures.
5. The provisions of Article 27, paragraph 1, shall also apply to any information brought under this Article to the knowledge of the competent authority of a Contracting State.
Rule 29
CONSULAR DIPLOMATIC AND FUNCTIONAL AGENTS
1. The provisions of this Convention shall not affect the tax privileges enjoyed by diplomatic agents or consular officials under either the general rules of international law or the provisions of special agreements.
2. For the purposes of the Convention, members of diplomatic missions or consular posts of a Contracting State accredited in the other Contracting State or in a third State, who have the nationality of the accrediting State, shall be deemed to be residents of that State if they are subject to the same obligations in respect of taxes on income and on property as residents of that State.
3. The Convention does not apply to international organizations, their organs or officials, or to persons who are members of diplomatic missions or consular posts of a third State, where they are located in the territory of a Contracting State and are not treated as residents in one or the other Contracting State in respect of income or property taxes.
CHAPTER VII. - Final provisions
Rule 30
BACKGROUND
1. Each Contracting State shall notify the other Contracting State of the fulfilment of the procedures required by its legislation for the entry into force of this Convention. The Convention shall enter into force on the fifteenth day of receipt of the second notification.
2. The provisions of the Convention shall apply:
(a) taxes due to the source on income awarded or paid from 1^er January of the year immediately following that of the entry into force of the Convention;
(b) other taxes on income for taxable periods ending on or after December 31 of the year immediately following that of the entry into force of the Convention;
(c) capital taxes on assets existing as at 1^er January of any year after that of the entry into force of the Convention.
3. The provisions of Article 11 of the Agreement between the Belgian Economic Union and the Republic of Georgia concerning the mutual promotion and protection of investments, signed in Brussels on 23 June 1993, shall not apply to taxes on income and on capital in respect of which this Convention has effect.
Rule 31
DENONCIATION
This Convention shall remain in force as long as it has not been denounced by a Contracting State, but each of the Contracting States may, until 30 June inclusive of any calendar year from the fifth year following that of the entry into force, denounce it, in writing and through diplomatic channels, to the other Contracting State. In case of denunciation before 1^er July of such a year, the Convention will last apply:
(a) taxes due to the source on the income awarded or paid by December 31 of the year of the denunciation;
(b) other taxes on taxable period income ending before December 31 of the year immediately following that of the denunciation;
(c) capital taxes on assets existing as at 1^er January of the year of denunciation.
In faith, the undersigned, duly authorized by their respective Governments, have signed this Convention.
Done in Brussels on 14 December 2000, in duplicate, in the English language.