Law Approving The Convention Between The Kingdom Of Belgium And The Republic Of Croatia For The Avoidance Of Double Taxation And Fiscal Evasion With Respect To Taxes On Income And On Capital Signed At Brussels On 31 October 200

Original Language Title: Loi portant assentiment à la Convention entre le Royaume de Belgique et la République de Croatie tendant à éviter la double imposition et à prévenir l'évasion fiscale en matière d'impôts sur le revenu et sur la fortune signée à Bruxelles le 31 octobre 200

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Posted the: 2004-04-27 Numac: 2004015049 FEDERAL PUBLIC SERVICE Foreign Affairs, trade outside and 29 February 2004 development COOPERATION. -Law concerning consent to the Convention between the Kingdom of Belgium and the Republic of Croatia for the avoidance of double taxation and prevent fiscal evasion with respect to taxes on income and on capital signed at Brussels on October 31, 2001 (1) (2) ALBERT II, King of the Belgians, to all, present and future, hi.
The Chambers have adopted and we endorse the following: Article 1. This Act regulates a matter referred to in article 77 of the Constitution.
S. 2. the Convention between the Kingdom of Belgium and the Republic of Croatia for the avoidance of double taxation and to prevent fiscal evasion with respect to taxes on income and on capital, signed at Brussels on 31 October 2001, released its full and complete effect.
Promulgate this Act, order that it self under the seal of the State and published by le Moniteur.
Given to Brussels, 29 February 2004.
ALBERT by the King: the Minister of Foreign Affairs, L. MICHEL. the Minister of finance, D. REYNDERS sealed with the seal of the State: the Minister of Justice, Ms. L. ONKELINCX _ Notes (1) Session 2003-2004.
Senate.
Documents: 2003-2004. Bill, filed October 9, 2003, no. 3 - 233/1. -2003-2004. Report No. 3 - 233/2. -2003-2004. Text adopted by the Commission.

Parliamentary Annals: 2003-2004. Discussion, meeting of December 5, 2003. -2003-2004.
Vote, meeting of December 5, 2003.
Room.
Documents: 2003-2004. Draft transmitted by the Senate No. 51-562/1. -2003-2004. Text adopted in plenary meeting and submitted to royal assent 2003-2004 parliamentary Annals. Discussion, meeting of January 8, 2004. -2003-2004.
Vote, meeting of January 8, 2004.
(2) pursuant to article 29 this Convention entered into force on 1 April 2004.

Convention between the Kingdom of Belgium and the Republic of Croatia for the avoidance of double taxation and prevent fiscal evasion with respect to taxes on income and on capital the Government of the Kingdom of Belgium and the Government of the Republic of Croatia, desiring to conclude a Convention for the avoidance of double taxation and prevent fiscal evasion with respect to taxes on income and on capital , have agreed upon the following provisions: Article 1 persons this Convention shall apply to persons who are residents of a Contracting State or the two Contracting States.
Article 2 taxes covered 1. This Convention shall apply to taxes on income and on capital imposed on behalf of a Contracting State, its political subdivisions or its local authorities, irrespective of the collection system.
2 are considered as taxes on the income and on the fortune taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of property movable or immovable property, taxes on the total amount of salaries paid by enterprises, as well as taxes on capital gains.
3. the existing taxes to which the Convention shall apply are in particular: has) with regard to the Belgium: 1 ° the tax of natural persons;
2 ° the corporate income tax;
3 ° income tax of legal persons;
4 ° the non-resident tax;
5 ° the complementary crisis contribution;
including the prepayments, pennies additional to such taxes and withholding taxes as well as taxes additional to natural persons tax, (hereinafter referred to as "Belgian tax");
(b) with regard to Croatia: 1 ° the tax ('the profit tax");
2 ° the tax on income (the income tax");
3 ° the local income tax (' the local income tax '), (hereinafter referred to as the "Croatian tax").
4. the Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention and additional to existing taxes or place. The competent authorities of the Contracting States shall communicate at the end of each year the significant changes made to their respective taxation laws.

Article 3 General Definitions 1. For the purposes of this Convention, unless the context otherwise requires: a) 1 ° "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 maritime zones and the air space over which, in accordance with international law, the Kingdom of Belgium has sovereign rights or jurisdiction;
2 ° "Croatia" means the territory of the Republic of Croatia as well as the maritime areas adjacent to the outer limit of the territorial sea, including the seabed and sub-bottom, on which, in accordance with international law (and the law of the Republic of Croatia), the Republic of Croatia exercises its sovereign rights and jurisdiction;
(b) the terms "A Contracting State" and "The other Contracting State" mean, as the context requires, the Belgium or Croatia;
(c) the term "person" includes natural persons, companies and any other body of persons;
(d) the term "company" means any body corporate or any entity which is treated as a legal person for the purposes of taxation;
(e) 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;
(f) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which the place of effective management is situated in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
(g) the term "competent authority" means, in relation to both Contracting States, the Minister of finance or his authorized delegate;
(h) the term "national" means: 1 ° any individual who possesses the nationality of a State Contracting;
2 ° any legal person, partnership or association established in accordance with the legislation in force in a State Contracting.
2. for the purposes of the Convention at any time by a Contracting State, any term or phrase that is not defined has, unless the context otherwise requires, meaning that assigns, at that time, the law of that State concerning the taxes covered by the Convention, the meaning given to this term or this expression by the tax of that State prevailing on the meaning attributed to it by the other branches of 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 laws of that State, is liable to tax in that State, because of his domicile, residence, place of management or any other criterion of a similar nature and also applies to that State as well as all of its political subdivisions or its local authorities. However, this term does not include persons who are subject to tax in that State for income from sources in that State or capital which is located.
2. when, under the provisions of paragraph 1 an individual is a resident of both Contracting States, his status is set as follows: has) this person is considered to be a resident only of the State where it has a permanent home;
If it has a permanent home in the two States, it is considered a resident of the State with which his personal and economic relations are closer (centre of vital interests);
(b) if the State where he has his centre of vital interests cannot be determined, or if it has a permanent home in any of the States, it is considered to be a resident only of the State where she is staying in usual manner;
(c) if he has habitual abode in both States or if it resides habitually in any of them, it is considered to be a resident only of the State in which it has the nationality;
(d) If this person is a national of both States or it possesses the nationality of any of them, the competent authorities of the Contracting States settle the question by mutual agreement.
3. where, under the provisions of paragraph 1 one person other than an individual is a resident of both Contracting States, it is considered to be a resident only of the State in which its place of effective management is situated.
Article 5 establishing stable 1.
For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which a company carries on all or part of its activity.
2. the term "permanent establishment" includes especially: a) a place of management, b) a branch, c) desks, d) a plant,) e a workshop, and f) a mine, a well of oil or gas, a quarry or any other place of extraction of natural resources.
3. a building site or construction or installation constitutes a permanent establishment only if its duration exceeds twelve months.
4. Notwithstanding the preceding provisions of this article, considering that there is no "permanent establishment" so: has) is made use of facilities

for the sole purpose of storage, exposure or delivery of goods belonging to the enterprise;
(b) goods belonging to the company are stored for the sole purpose of storage, exposure or delivery;
(c) goods belonging to the company are stored for the sole purpose of processing by another enterprise;
(d) a fixed place of business is used solely to purchase merchandise or to gather information, for the enterprise;
(e) a fixed place of business is used for the sole purpose to exercise, for the enterprise, any other activity of a preparatory or auxiliary character;
((f) a fixed place of business is used for the sole purpose of fiscal year cumulative activities mentioned in paragraph a) to (e)), provided that the activity of the fixed place of business resulting from this combination set keeps a preparatory or auxiliary character.
5. Notwithstanding the provisions of paragraphs 1 and 2, when a person-an agent of an independent status to which paragraph 6 applies acts on behalf of an enterprise and in a State Contracting powers exercised by it are usually to conclude contracts on behalf of the company, this company is considered as having a permanent establishment in that State for all the activities that this person performs for the company unless the activities of such person are limited to those mentioned in paragraph 4 and which, if they were exercised through a fixed place of business, would not consider this facility as a permanent establishment under the provisions of this paragraph.
6. an enterprise shall not be considered as having a permanent establishment in a Contracting State merely because it carries its activity through a broker, general Commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary activity course.
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 State Contracting or which carries on business (whether through an establishment stable or not) does not, in itself, to make one any of these companies a permanent establishment of the other.
Article 6 property income 1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry holdings) situated in the other Contracting State, may be taxed in that other State.
2. the term "immovable property" has the meaning given to it by the law of the Contracting State where the property in question is situated. The term includes in any case accessories, livestock dead or alive's farms and forestry, rights to which the provisions of private law concerning land ownership, usufruct of real property and rights to variable or fixed payments for the exploitation or concession of exploitation of deposits minerals, sources and other natural resources; ships, boats and aircraft are not considered to be real property.
3. the provisions of paragraph 1 shall apply to income derived from the use or the direct enjoyment of the rental or leasing, as well as any other form of immovable property.
4. the provisions of paragraphs 1 and 3 shall apply also to income from real property of an enterprise and to income from real property used for the pursuit of an independent profession.
Article 7 1 corporate profits. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the company operates in the other State Contracting through a permanent establishment situated therein. If the enterprise carries on business in such a way, the profits of the enterprise are taxable in the other State but only insofar as they are attributable to that permanent establishment.
2. subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other State Contracting through a permanent establishment situated, it is charged, in each Contracting State, to that permanent establishment profits that he could achieve if it had been a separate business operating identical or similar under conditions identical or similar and acting independently.
3. in determining the profits of a permanent establishment, are allowed as deductions expenses incurred for the purposes of establishment, including Executive and general expenses so incurred administration, either in the State where the permanent establishment is situated or elsewhere.
4. If it has been customary in a Contracting State to determine the profits attributable to a permanent establishment on the basis of an apportionment 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 according to the distribution in use; the adopted allocation method should be such that the result is consistent with the principles contained in this article.
5. no benefit is attributed to a permanent establishment that he simply bought goods for the company.
6. for the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment are determined each year by the same method, unless there is good and sufficient contrary reasons.
7. where profits include items of income which are dealt with separately in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.
Article 8 shipping, inland waterway and air 1 profits from the operation in international traffic of ships or aircraft shall be taxable only in the Contracting State where the seat of effective management of the enterprise is situated.
2. profits from the operation of vessels in inland navigation shall be taxable only in the Contracting State where the place of effective management of the enterprise is situated.
3. If the place of effective management of a maritime or inland navigation company is on board a ship or a boat, this seat is considered to be situated in the Contracting State where the home port of the ship of this boat, or absence of homeport, in the Contracting State of which the operator of the ship or boat is a resident.
4. the provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint operation or an international operating agency.
Article 9 associated enterprises 1.
When 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, or that b) the same persons participate directly or indirectly to the direction, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and that, in the other case the two companies are, in their commercial or financial, relationships bound by agreed or imposed conditions which differ from those which would be agreed between independent companies, the benefits that without these conditions, would have been made by one of the companies but could not be in fact because of these conditions, can 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 imposes accordingly - profits on which an enterprise of the other Contracting State has been imposed in that other State and the profits so included are profits which have been made by the company of the first State if the conditions agreed between the two companies had been those which would have been agreed between independent enterprises the other State conducts adjustment it considers appropriate to the amount of the tax which is received on these profits. To determine this adjustment, account shall be taken of the other provisions of this Convention and, if necessary, the competent authorities of the Contracting States shall 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 beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed: a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company which holds directly or indirectly at least 10 per cent of the share capital of the company paying dividends;
b) 15 per cent of the gross amount of the dividends in all other cases.
This paragraph does not affect the taxation of the company in respect of the benefits that are used for the payment of dividends.
3. the term "dividends" as used in this article means income from shares, shares or dividend certificates, mining, founder shares or other rights

beneficiaries with the exception of receivables, as well as income - even attributed in the form of interest-subject to the same taxation treatment as income from shares by the taxation law of the State where the debtor company is a resident.
4. the provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the dividends, being a resident of a State Contracting, carries on in the other Contracting State of which the company paying the dividends is a resident, either an industrial or commercial activity through a permanent establishment situated therein, an independent profession through a fixed base which is located , and generating participation of dividends related actually. In this 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 State Contracting, that other State may levy no tax on dividends paid by the company, except to the extent where such dividends are paid to a resident of that other State or insofar as where the dividends generating participation relates effectively to a permanent establishment or a fixed base situated in that other State , or impose any tax in respect of the taxation of retained earnings, retained earnings of the company, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income from that other State.
Article 11 interest 1. 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 they come and under the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2, interest are exempt from tax in the Contracting State they come when it comes: a) of interest on trade receivables - including those that are represented by effects of trade - as a result of the payment term of supplies of goods, products or services by companies;
(b) interest paid due to a loan or a credit extended, guaranteed or insured under a legal scheme organised by a Contracting State or one of its political subdivisions or local authorities to promote exports;
(c) of interest on loans of any nature not represented by securities in bearer form and made by banking companies;
(d) of interest on deposits of money not represented by securities in bearer form and made by companies in banking companies;
(e) interest paid to the other Contracting State or any of its political subdivisions or local authorities.
4. the term "interest" as used in this article means income of claims of any nature, secured or not secured by mortgage or a right to participate in the debtor's profits, and including income on public funds and bonds of debentures, including premiums and prizes attaching to such securities. However, this term does not, within the meaning of this section, the penalties for late payment or interest treated as dividends under article 10, paragraph 3.
5. the provisions of paragraphs 1, 2 and 3 do not apply if the beneficial owner of the interest, being a resident of a State Contracting, carries on in the other Contracting State comes the interests, either an industrial activity or business through a permanent establishment situated therein, or independent through a fixed base which is located, and that the generator of the interest receivable related actually. In this case, the provisions of article 7 or article 14, as the case may be, shall apply.
6. the interests are considered as originating in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State. However, when the debtor of interests, 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 was incurred and that supports the load of these interests, these are considered as coming from the State where the permanent establishment or fixed base is located.
7. when, due to special relationship between the payer and the beneficial owner or that one and the other have with third parties, the amount of interest, taking into account the debt for which they are paid, exceeds the amount which would be agreed upon the payer and the beneficial owner in the absence of such relationship, the provisions of this article apply only to the latter amount. In this case, the excess part of the payments is taxable according to the laws of each Contracting State and in light of the other provisions of this Convention.
Article 12 royalties 1.
The royalties from a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State.
2. the term "royalties" as used in this article means payments of any kind paid for the concession of the use of a copyright in a literary, artistic or scientific, including cinematograph films and films or recorded tapes or other media for radio or television, or the use of a patent, of a name or trade mark a design or model, plan, a formula or process secret and information relating to experience gained in the industrial, commercial or scientific.
3. the provisions of subsection 1 do not apply if the beneficial owner of the royalties, being a resident of a State Contracting, carries on in the other Contracting State comes royalties, either an activity or business through a permanent establishment situated therein, or independent through a fixed base is situated, and that the right or well Builder royalty related actually. In this case, the provisions of article 7 or article 14, as the case may be, shall apply.
4. royalties are considered as arising in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State Contracting. However, when the debtor's 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 the royalties has been concluded and which supports the load of these charges, they are considered as being from the State Contracting where the permanent establishment or fixed base is located.
5. when, due to special relationship between the payer and the beneficial owner or that one and the other have with third parties, the amount of fees, taking into account the provision for which they are paid, exceeds the amount which would be agreed upon the payer and the beneficial owner in the absence of such relationship, the provisions of this article apply only to the latter amount. In this case, the excess part of the payments is taxable according to the laws of each Contracting State and in light of the other provisions of this Convention.
Article 13 Gains in capital 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 assets of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or movable property which belong to a fixed base available to a resident of a Contracting State in the other Contracting State for the exercise of an independent profession, including such gains from the alienation of this establishment stable (alone or with the whole of the company) or the basic fixed may be taxed in that other State.
3. gains from the alienation of ships or aircraft operated in international traffic, boats used in inland waterways transport or movable property pertaining to the operation of such ships, aircraft or boats, shall be taxable only in the Contracting State where the place of effective management of the enterprise is situated.
4. gains 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 alienator is a resident.
Article 14 independent personal services 1. Income derived by a resident of a Contracting State of professional services or other activities of an independent character are taxable only in that State unless the resident provides habitually in the other Contracting State of a fixed basis for the exercise of its activities. If he has such a fixed base, the income are taxable in the other State but only insofar as they are attributable to that fixed base.
2. the term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities, thus

that the activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15 dependent personal services 1. Subject to the provisions of articles 16, 18, 19 and 20, salaries, wages and other similar remuneration that a resident of a Contracting State receives 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 exercised, the remuneration received for this 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 State if: a) the recipient is present in the other State for a period or periods exceeding not in total 183 days during any period of twelve months commencing or ending in the fiscal year concerned ((, and b) the remuneration is paid by an employer, or on behalf of an employer who is not a resident of the other State, c) and the remuneration 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 in respect of an employment exercised aboard a ship or aircraft operated in international traffic, or aboard a boat used for inland navigation, be taxed in the Contracting State where the place of effective management of the enterprise is situated.
Article 16 companies 1. Directors, tokens of presence and other similar payments derived by a resident of a Contracting State in his capacity as member of the Board of directors or a similar organ of a company which is a resident of the other Contracting State may be taxed in that other State.
The foregoing applies also to payments received because of the performance of duties which, under the law of the Contracting State of which the company is a resident, are treated as functions of a similar nature to those performed by a person referred to in that provision.
2. the remuneration received by a person referred to in paragraph 1 from a company which is a resident of a Contracting State due to the pursuit of one activity daily management or technical character as well as the remuneration derived by a resident of a Contracting State from his personal as a partner in a partnership, other than a corporation, which is a resident of a Contracting State may be taxed in accordance with the provisions of article 15, as if it were compensation an employee pulls of paid employment, and as if the employer was the company.
Article 17 Artistes and sportspersons 1. Notwithstanding the provisions of articles 14 and 15, income derived by a resident of a Contracting State from his personal activities exercised in the other Contracting State as an artist of the show, as an artist of theatre, film, radio or television, or a musician, or as a sportsperson, may be taxed in that other State.
2. where the income from activities exercised by an entertainer or a sportsperson personally and as such are attributed not to the entertainer or athlete himself but to another person, that income are taxable, notwithstanding the provisions of articles 7, 14 and 15, in the Contracting State where the activities of the entertainer or athlete are exercised.
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 in respect of past employment shall be taxable only in that State.
2. However, pensions and other allowances, periodic or not, paid in implementation of the social legislation of a Contracting State may be taxed in that State. This provision also applies to pensions and allowances paid under a general scheme organised by a Contracting State to supplement the benefits provided for by the said legislation.
Article 19 public functions 1.
(a) salaries, wages and other remuneration, other than a pension, paid by a Contracting State or any of its political subdivisions or local authority 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 similar 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: 1 ° has the nationality of that State, or 2 ° did not become a resident of that State solely to provide the services.
2. a) pensions paid by a Contracting State or of its political subdivisions or local authorities, either directly or by out of funds that they have established, 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 pensions are taxable only in the other Contracting State if the individual is a resident of this State and has the nationality.
3. the provisions of articles 15, 16 and 18 shall apply to salaries, wages and other similar remuneration and to pensions paid in respect of services rendered in connection with a business carried on by a Contracting State or of its political subdivisions or local authorities.
4. the provisions of paragraph 1 of this article shall also apply to salaries, wages and other similar remuneration paid by a Contracting State or of its political subdivisions or local authorities, either directly or through funds provided exclusively by that State or subdivision or authority, to experts or volunteers in respect of services rendered in the other State within the framework of economic cooperation agreements concluded between the Contracting States their political subdivisions or local communities.
Article 20 professors and students 1. Pay any teachers and other members of the teaching staff, residents of a Contracting State, who stay in the other Contracting State to teach or engage in scientific research at a university or any other officially recognized education institution, are exempt from tax in that other State if these people stay exceeds not two years from the date of their arrival in that other State.
2. a student or a trainee who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State and who is staying temporarily in the first State sole purpose of pursuing his studies or training, is exempted in this State: has) on amounts received from sources outside this State to cover maintenance costs studies or training;
(b) on the remuneration received in respect of an employment exercised in that State in connection with his studies or training and during normal, if such remuneration do not exceed following the case, by calendar year 120. 000 Belgian francs or 3,000 euros or the equivalent of this sum in Croatian currency at the official rate of Exchange.
Article 21 other income 1. Items of income of a resident of a Contracting State as they come, which are not covered by the preceding articles of the present Convention and which are imposed in this State shall be taxable only in that State.
2. the provisions of paragraph 1 shall not apply to income other than income from immovable property as defined in article 6, paragraph 2, if the recipient of such income, resident of a State Contracting, carries on in the other Contracting State, or industrial activity or business through a permanent establishment situated therein, or independent with a fixed base that is located , and that the right or the generator of income related actually. In this case, the provisions of article 7 or article 14, as the case may be, shall apply.
Article 22 Fortune 1.
Capital represented by real property referred to in article 6, owned by a resident of a Contracting State and which are situated in the other Contracting State, be taxed in that other State.
2. capital represented by movable property forming part of the assets of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or by movable property which belong to a fixed base which a resident of a State Contracting has in the other Contracting State for the exercise of an independent profession, may be taxed in that other State.
3. capital represented by ships and aircraft operated in international traffic by vessels for inland navigation, as well as by movable property allocated to the operation of such ships, aircraft or boats, is taxable only in the Contracting State where the seat 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.
Article 23 methods for elimination of double taxation 1. With regard to the Belgium, double taxation shall be avoided as follows: a) when a

resident of the Belgium derives income or owns elements of capital which are imposed in Croatia in accordance with the provisions of this Convention, with the exception of articles 10, paragraph 2, 11, paragraphs 2 and 7, and 12, paragraph 5, the Belgium free from tax revenues or these elements of fortune but it can calculate the amount of tax on the rest of income or capital of that resident apply the same rate if revenues or elements of fortune in question had not been exempted.
(b) subject to the provisions of the Belgian law relating to the imputation tax Belgian taxes paid abroad, where a resident of the Belgium derives items of income which are included in its total income subject to Belgian tax and which consist of dividends not exempt from Belgian under c taxation) hereinafter, interest or royalties, Croatian tax levied on that income is charged against Belgian tax relating to such income.
(c) dividends received by a company which is a resident of the Belgium of a company which is a resident of Croatia are exempt from tax on corporations in Belgium under Belgian law.
(d) where, in accordance with Belgian legislation, losses suffered by a business carried on by a resident of the Belgium in a permanent establishment situated in Croatia were actually deducted from the profits of this company for its imposition in Belgium, the exemption in the a) does not apply in Belgium to the profits of other taxable periods that are attributed to this establishment insofar as these benefits were also exempt from taxation in Croatia because their compensation with such losses.
2. in relation to a resident of Croatia, double taxation shall be avoided as follows: a) revenues derived from Belgium - with the exception of income referred to in b) - element of fortune that he has in Belgium which, pursuant to the provisions of this Convention, may be taxed in Belgium are exempt from taxation in Croatia. This exemption does not affect the right of Croatia to take into account income or capital exempted in the determination of the tax rate. This provision applies to dividends if such dividends are paid to a company which is a resident of Croatia by a company which is a resident of Belgium including at least 10% of the capital is held directly or indirectly by the Croatian society and if such dividends are not deducted in the determination of the profits of the company paying the dividends.
((b) in accordance with the Croatian tax legislation and the Convention, paid in Belgium on the following income tax is charged on income-related Croatian tax: aa) dividends not included in the a);
BB) interest;
CC) royalties;
DD) income referred to in article 15, paragraph 3;
EE) fees referred to in article 16, paragraph 1;
FF) income of artists and sportsmen.
Article 24 non-discrimination 1. Nationals of a Contracting State not be subjected in the other Contracting State to any taxation or obligation y, which is other or more heavy than those which are or may be subjected nationals of that other State who are in the same situation, including with regard to the residence. This provision applies also, notwithstanding the provisions of article 1, to persons who are not residents of a Contracting State or of the two Contracting States.
2. stateless persons who are residents of a Contracting State are subject in one or the other Contracting State to any taxation or obligation y relative which is other or more burdensome than those which are or may be subjected the State nationals who are in the same situation.
3. the imposition of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State is not established in that other State to less favourably than the taxation levied on enterprises of that other State carrying on the same activities. This provision cannot be interpreted as obliging a Contracting State to grant to residents of the other State contracting the personal allowances, reliefs and reductions for tax depending on the situation or family responsibilities which it grants to its own residents.
4 unless the provisions of article 9, paragraph 1, article 11, paragraph 7, or article 12, paragraph 5, shall apply, interest, royalties and other expenses paid by an enterprise of a Contracting State to a resident of the other Contracting State are deductible, for the determination of the taxable profits of the company, under the same conditions as if they had been paid to a resident of the first State. Similarly, the debts of an enterprise of a Contracting State to a resident of the other Contracting State are deductible, for the determination of the fortune of this company, under the same conditions as if they had been contracted to a resident of the first State.
5. enterprises of a Contracting State, whose capital is wholly or in part, directly or indirectly owned or controlled by one or more residents of the other Contracting State, are subject in the first State to any taxation or obligation y, which is other or more heavy than those which are or may be subject other similar of the first State businesses.
6. the provisions of this article shall apply notwithstanding the provisions of article 2, taxes of any nature or description.
Article 25 mutual agreement Procedure 1. Where a person considers that the measures taken by a Contracting State or by the two Contracting States result or will result in taxation not in accordance with the provisions of this Convention for it, it may, irrespective of the remedies provided by the domestic law of those States, submit his case to the competent authority of the Contracting State of which it is a resident or, if his case falls under article 24 , paragraph 1, to that of the Contracting State in which it is a national. The case must be submitted within three years following the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.
2. the competent authority shall endeavour, if the query 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 avoidance of taxation not in accordance with the Convention. The agreement is 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 any difficulties or doubts arising as to which can lead the interpretation or application of the Convention.
4. the competent authorities of the Contracting States shall consult regarding the administrative measures necessary for the implementation of the provisions of the Convention and particularly with regard to the justifications to be provided by each Contracting State residents to benefit in the other State's exemptions or tax reductions provided for in this Convention.
5. the competent authorities of the Contracting States communicate directly between them for the purposes of the Convention.
Article 26 exchange of information 1. The competent authorities of the Contracting States shall exchange the information necessary to apply the provisions of this Convention or of the domestic legislation of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by article 1. Information received by a Contracting State are confidential in the same way that the information obtained in accordance with the internal law of that State and not be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the establishment or collection of the taxes covered by the Convention, procedures or proceedings in respect of those taxes , or by the decisions on appeals related to these taxes. These persons or authorities use this information for these purposes only. They can make this information public hearings State courts or in judgments.
2. the provisions of paragraph 1 shall not be interpreted as imposing a State Contracting obligation: has) to take administrative measures derogating from its legislation and its administrative practice or those of the other Contracting State;
(b) to provide information that could be obtained on the basis of its legislation or in the context of its normal administrative practice or those of the other Contracting State;
(c) to provide information that would reveal a commercial, industrial or professional secret or trade process, or information the disclosure of which would be contrary to public order.
Article 27 Assistance in recovery 1. The Contracting States undertake to lend each other support and assistance for the purpose to notify and to recover the taxes referred to in article 2 as well as all additional increases, interest, fees and fines without criminal character.
2. at the request of the competent authority of a Contracting State, the competent authority of the other Contracting State provides

following the legal and regulatory provisions applicable to the notification and recovery said taxes of this latter State, the notification and the recovery of tax claims referred to in paragraph 1, that are payable in the first State. These claims do not enjoy no privilege in the requested State and it is not bound to apply means of implementation that are not allowed by legal or regulations of the requesting State.
3. requests referred to in paragraph 2 are supported by an official copy of the enforceable, accompanied, is it necessary, an official copy of the administrative decisions or court in res judicata.
4. as regards tax debts that are subject to appeal, the competent authority of a Contracting State may, for the safeguarding of their rights, apply to the competent authority of the other Contracting State to take the precautionary measures provided for by the legislation the provisions of paragraphs 1 to 3 shall apply, mutatis mutandis, to these measures.
5. the provisions of article 26, paragraph 1, shall also apply to any door information, in pursuance of this section, to the knowledge of the competent authority of a Contracting State.
Article 28 members of diplomatic and posts missions consular provisions of the present Convention shall affect the fiscal privileges enjoyed by members of diplomatic missions or consular posts pursuant to the General rules of international law or the provisions of special agreements.
Article 29 entry into force 1. This Convention shall enter into force the fifteenth day following the date of receipt by the diplomacy of the second notification by which one of the Contracting States notifies the other the completion of the procedures required by its law for the entry into force of this Convention.

2. the provisions of the Convention shall apply: a) the taxes due at source on assigned revenues or payment from 1 January of the year next following that of the entry into force of the Convention;
(b) to other taxes based on income of taxable periods that end from December 31 of the year next following that of the entry into force of the Convention;
(c) to taxes on capital established on elements of fortune existing on 1 January of any year subsequent to that of the entry into force of the Convention.
3. the provisions of the Convention between the Socialist Federal Republic of Yugoslavia and the Kingdom of Belgium for the avoidance of double taxation of income and capital, signed at Belgrade on November 21, 1980, shall cease to apply to any Belgian or Croatian tax revenues for which this Convention has effect with respect to this tax-related , in accordance with the provisions of paragraph 2.
Article 30 termination this Convention shall remain in force until one of the Contracting States denounces, in writing and through diplomatic channels, to the other Contracting State no later than June 30 of any calendar year after the expiry of a period of five years from the date of its entry into force. En_cas_de denunciation before July 1 of such year, the Convention will apply for the last time: a) the taxes due at source on income attributed or put in payment no later than 31 December of the year of the denunciation;
(b) to other taxes based on revenues of taking taxable periods end before December 31 of the year immediately following that of the termination;
(c) to taxes on capital established on elements of fortune existing on 1 January of the year of the withdrawal.
In witness whereof, the undersigned, being duly authorized by their respective Governments, have signed the present Convention.
Done at Brussels, 31 October 2001, in duplicate, in the languages English, Dutch, French and Croatian, 4 texts being equally authentic. The English text shall prevail in the event of divergence between the texts.
Protocol at the time of signing of the Convention between the Kingdom of Belgium and the Republic of Croatia for the avoidance of double taxation and to prevent fiscal evasion with respect to taxes on income and on capital, the undersigned have agreed to the following provisions which are an integral part of the Convention.
(1 Ad Article 15, paragraph 2, a): for the purposes of the Convention, the term "fiscal year" means, in the case of Belgium, the taxable period and, in the case of Croatia, the calendar year.
2. Ad Article 18, paragraph 1: Notwithstanding the provision of article 18, paragraph 1, pensions and other similar remuneration paid to a resident of a Contracting State shall be taxable only in the other Contracting State source if these pensions and similar remuneration are not imposed in the first Contracting State.
In witness whereof, the undersigned, being duly authorized by their respective Governments, have signed this Protocol.
Done at Brussels, 31 October 2001, in duplicate, in the languages English, Dutch, French and Croatian, 4 texts being equally authentic. The English text shall prevail in the event of divergence between the texts.

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