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Law Approving The Convention Between The Kingdom Of Belgium And The Republic Of Estonia For The Avoidance Of Double Taxation And Fiscal Evasion With Respect To Taxes On Income And The Protocol, Signed In Brussels On 5 November 1999

Original Language Title: Loi portant assentiment à la Convention entre le Royaume de Belgique et la République d'Estonie tendant à éviter la double imposition et à prévenir l'évasion fiscale en matière d'impôts sur le revenu, et au Protocole, signés à Bruxelles le 5 novembre 1999

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18 FEBRUARY 2003. - An Act to assent to the Convention between the Kingdom of Belgium and the Republic of Estonia to avoid double taxation and to prevent tax evasion in respect of income taxes, and the Protocol, signed in Brussels on 5 November 1999 (1) (2)



ALBERT II, King of the Belgians,
To all, present and to come, Hi.
The Chambers adopted and We sanction the following:
Article 1er. This Act regulates a matter referred to in Article 77 of the Constitution.
Art. 2. The Convention between the Kingdom of Belgium and the Republic of Estonia to avoid double taxation and to prevent tax evasion on income tax, and the Protocol, signed in Brussels on 5 November 1999, will come out their full and full effect.
Promulgation of this law, let us order that it be clothed with the seal of the State and published by the Belgian Monitor.
Given in Brussels on 18 February 2003.
ALBERT
By the King:
Minister of Foreign Affairs,
L. MICHEL
Minister of Finance,
D. REYNDERS
Minister, Deputy Minister of Foreign Affairs,
Ms. A. NEYTS-UYTTEBROEK
Seen and sealed the state seal:
Minister of Justice,
Mr. VERWILGHEN
____
Notes
(1) Session 2001-2002.
Senate.
Documents. - Bill tabled on 12 September 2002, No. 2-1273/1
Session 2002-2003
Report made on behalf of the Committee, No. 2-1273/2
Annales Parlementaires . - Discussion, meeting of November 28, 2002. - Vote, meeting of 28 November 2002.
Room
Session 2002-2003
Documents. - Project transmitted by the Senate, No. 50-2158/1. - Amendments, no. 50-2158/2. - Text adopted in plenary session and subject to Royal Assent, No. 50-2158/3
Annales Parlementaires . - Discussion, meeting of 13 December 2002. - Vote, meeting of 13 December 2002.
(2) This Convention entered into force on 15 April 2003.

CONVENTION AGAINST THE BELGIUM ROYAUME AND THE REPUBLIC OF ESTONIA AGAINST THE IMPOSITION DOUBLE AND FIRST THE FISCALE EVASION ON THE RESPONSE
The Government of the Kingdom of Belgium
and
The Government of the Republic of Eritrea
Desiring to conclude a Convention to Avoid Double Taxation and Prevent Tax Evasion in Income Tax, have agreed on the following provisions:
CHAPTER Ier. - Scope of the convention
ARTICLE 1er
Target persons
This Convention applies to persons who are residents of a Contracting State or both Contracting States.
ARTICLE 2
Taxes targeted
1. This Convention applies to income taxes collected on behalf of a Contracting State, its political subdivisions or local authorities, regardless of the system of collection.
2. Income taxes are considered to be taxed on total income or income elements, including taxes on gains from the alienation of movable or real property, as well as taxes on surplus-values.
3. Current taxes to which the Convention applies include:
(a) with respect to Estonia:
(i) income tax (tulumaks);
(ii) local income tax (kohalik tulumaks);
(hereinafter referred to as "Estonian tax");
(b) with regard to Belgium:
(i) the tax of natural persons;
(ii) corporate tax;
(iii) corporation tax;
(iv) non-resident tax;
(v) the complementary contribution of crisis;
including pre-payments, additional cents to such 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 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 "Estonia" means the Republic of Estonia and, when used in a geographical sense, it designates the territory of Estonia as well as any area adjacent to the territorial waters of Estonia within which may be exercised, under the laws of Estonia and in accordance with international law, the rights of Estonia to the seabed and to the seabed and the rights of Estonia to the seabed and
(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" mean, according to the context, Estonia or Belgium;
(d) the term "person" includes natural persons, societies and all other groups of persons;
(e) the term "society" means any corporation or entity that is considered to be a corporation for taxation purposes;
(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 transport by a ship or aircraft operated by an enterprise of a Contracting State, except where the ship or aircraft is operated only between points in the other Contracting State;
(h) the term "competent authority" means:
(i) with respect to Estonia, the Minister of Finance or its authorized representative, and
(ii) in respect of Belgium, the Minister of Finance or its authorized representative;
(i) the term "national" means:
(i) any natural person who has the nationality of a Contracting State;
(ii) any legal person, partnership or association incorporated 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 the law of 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, management seat, place of incorporation or any other criterion of a similar nature. The expression also applies to this State itself, its political subdivisions and its local authorities. However, this term does not include persons who are subject to tax in that State only for income from sources in that State.
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, the competent authorities of the Contracting States shall endeavour to determine the matter by mutual agreement. In the absence of such an agreement, the said person shall not be considered a resident of any of the Contracting States for the purpose of benefiting from the benefits provided for in the Convention.
ARTICLE 5
Stable establishment
1. For the purposes of this Convention, the term "stable establishment" means a fixed business facility through which a company operates all or part of its business.
2. The term "stable establishment" includes:
(a) a steering seat,
(b) a branch,
(c) an office,
(d) a factory,
(e) a workshop, and
(f) a mine, oil or gas well, a career or any other place of extraction of natural resources.
3. A construction or assembly site, or a monitoring or consulting activity, shall be a permanent establishment only if the construction or construction site has a duration of more than nine 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, exposure or delivery of goods owned by the company;
(b) goods belonging to the undertaking are stored for storage, exposure or delivery purposes only;
(c) goods belonging to the enterprise are stored for the sole purpose of processing by another company;
(d) a fixed business facility is used for the sole purpose of purchasing goods or collecting information for the company;
(e) a fixed business facility is used for the sole purpose of carrying out any other preparatory or auxiliary activity for the enterprise;
(f) a fixed business facility shall be used only for the purpose of the cumulative year of activities referred to in subparagraphs (a) to (e), provided that the overall activity of the fixed business facility resulting from this accumulated business shall be preparatory or auxiliary.
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. However, where the activities of such an agent are carried out exclusively or almost exclusively on behalf of that undertaking, and where the conditions agreed between the agent and the undertaking differ from those agreed between independent persons, that agent is not considered an independent agent within the meaning of this paragraph. In that case, the provisions of paragraph 5 shall apply.
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
Real estate income
1. The income that a resident of a Contracting State derives from real property (including income from farms or forestry) located in the other Contracting State, is taxable in that other State.
2. The term "real property" has the meaning assigned to it by the law of the Contracting State in which the property is located. The term includes, in any case, accessories, dead or alive livestock of farms and forests, the rights to which the provisions of private law apply in respect of land ownership, the usufruct of real property, and the rights to variable or fixed payments for the exploitation or concession of the exploitation of mineral deposits, sources and other natural resources, as well as any similar option or right to acquire real property. Ships, ships and aircraft 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. Where the ownership of shares or other social shares in a corporation gives the owner of such shares or shares a right of enjoyment on immovable property owned by the corporation, income derived from direct exploitation or enjoyment, lease or charter, and any other form of exploitation of that right of enjoyment may be taxed in the Contracting State where such immovable property is located.
5. The provisions of paragraphs 1, 3 and 4 also apply to income from real property of a business as well as to income from real property used in the exercise of an independent profession.
ARTICLE 7
Business benefits
1. The profits of an enterprise of a Contracting State shall be taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located therein. If the company operates 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 set out for the purposes of the permanent establishment, including the executive expenses and general administrative expenses as set out, either in the State in which the permanent establishment is located, or elsewhere, but with the exclusion of expenses which, under the legislation of that State, could not be admitted as a deduction in the head of an enterprise of that State.
4. If it is customary 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.
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.
8. No provision of this Article shall preclude a Contracting State from enforcing its legislation relating to the taxation of a person engaged in insurance activity provided that such insurance activity is carried out through a permanent establishment located in that Contracting State (assuming that such legislation is in force on the date of signature of this Convention and may be amended only by minor amendments which do not affect the general nature of that activity). However, the tax so charged shall not exceed 4.4 per cent of the gross amount of the premiums attributable to this permanent establishment.
ARTICLE 8
Maritime and air navigation
1. The profits of a company of a Contracting State arising from the operation, in international traffic, of ships or aircraft shall be taxable only in that State.
2. 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
Associated companies
1. When
(a) a business of a Contracting State directly or indirectly participates in the direction, control or capital of a business of the other Contracting State, or
(b) the same persons directly or indirectly participate in the direction, control or capital of a business of a Contracting State and a business of the other Contracting State,
and that, in both cases, both companies are, in their commercial or financial relations, bound by agreed or imposed conditions, that differ from those that would be agreed between independent companies, 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 consequently imposes - 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 conditions agreed between the two enterprises had been those that would have been agreed between independent enterprises, the other State shall make an appropriate adjustment to the amount of the tax that would have been made 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 beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:
(a) 5 per cent of the gross amount of dividends if the beneficial owner is a corporation that holds directly 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 founders or other share of beneficiaries except for receivables, as well as income from other social parts subject to the same tax regime as income from shares by the law of the State whose distribution society is a resident.
4. The provisions of paragraphs 1 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
Interest
1. Interest arising from a Contracting State and paid to a resident of the other Contracting State shall be taxable in that other State.
2. However, these interests are also taxable in the Contracting State in which they arise and according to the law of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2:
(a) interest arising from a Contracting State and whose beneficial owner is the Government of the other Contracting State, including its political subdivisions and local authorities, the Central Bank or any financial institution whose capital is wholly owned by that Government, as well as interest paid by virtue of a loan guaranteed or insured by that Government, that subdivision or community or a public institution acting in the context of the promotion of exports and approved by a common contracting State by the
(b) interest arising from a Contracting State shall be exempted from tax in that State if the beneficial owner of such interest is a business of the other Contracting State, and if the interest is paid by reason of a debt resulting from the sale to credit by a company of that other State of goods, or from industrial, commercial or scientific equipment to a business of the first State, except where the sale or debt is contracted between related persons.
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.
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 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, in accordance with the laws of each Contracting State and taking into account the other provisions of this Convention.
Article 12
Claims
1. Royalties from a Contracting State and paid to a resident of the other Contracting State shall be taxable in that other State.
2. However, such royalties are also taxable in the Contracting State in which they arise and according to the law of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed:
(a) 5 per cent of the gross amount of royalties paid for the use of industrial, commercial or scientific equipment;
(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 a trade mark, a drawing or a model, a plan, a plan
4. The provisions of paragraphs 1 and 2 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 arise from a Contracting State when the debtor is a resident of that State. However, where the debtor of royalties, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment, or a fixed base, for which the 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 the 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 such cases, the surplus portion of the payments shall be taxable, in accordance with the laws of each Contracting State and taking into account the other provisions of this Convention.
Article 13
Capital gains
1. The gains derived by a resident of a Contracting State from the alienation of real property referred to in Article 6, and situated in the other Contracting State, shall be taxable in that other State.
2. The gains derived by a resident of a Contracting State from the alienation of shares of a corporation whose assets consist exclusively or principally of real property, referred to in Article 6 and situated in the other Contracting State, are taxable in that other State.
3. 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
4. The gains that a business of a Contracting State derives from the alienation of ships or aircraft operated in international traffic by that undertaking, or of movable property assigned to the operation of such ships or aircraft, shall be taxable only in that State.
5. The gains from the alienation of any property other than those referred to in paragraphs 1, 2, 3 and 4 shall be taxable only in the Contracting State of which the assignor is a resident.
Article 14
Independent occupations
1. The income that a natural person who is a resident of a Contracting State derives from a liberal profession or other activities of an independent character shall be taxable only in that State, unless that 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, the income shall be taxable in the other Contracting State but only to the extent that it is attributable to that fixed base. For this purpose, where a natural person who is a resident of a Contracting State resides in the other Contracting State for a period or periods exceeding a total of 183 days for any period of twelve months beginning or ending in the fiscal year under review, that person is considered to have a fixed base in that other State for that fiscal year or those fiscal years and the income derived from the activities referred to above shall be exercised in that other State.
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
Dependent 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 in the fiscal year under review, and
(b) compensation shall be paid by an employer or on behalf of an employer who is not a resident of the other State, and
(c) the pay charge is not borne by a permanent establishment or a fixed base that the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article, remuneration received for an employee employed on board a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that State.
Article 16
Elevenths
1. The fortieth, attendance and other similar remuneration that a resident of a Contracting State receives as a member of the board of directors or of a similar body of a corporation that is a resident of the other Contracting State may be taxed in that other State.
2. However, the remuneration that the persons concerned receive in another capacity shall be taxable, as the case may be, in accordance with the provisions of Article 14 or Article 15.
Article 17
Artists and athletes
1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State from his or her personal activities in the other Contracting State as an artist of the spectacle, such as a theatre, cinema, radio or television artist, or a musician, or as a sportsman, may be taxed in that other State.
2. Where the income of activities that an entertainer or a sportsperson exercises personally and in this capacity is attributed not to the artist or to the athlete himself but to another person, such income shall be taxable, notwithstanding the provisions of Articles 7, 14 and 15, in the Contracting State where the activities of the artist or athlete are carried out.
3. The provisions of paragraphs 1 and 2 shall not apply to income derived by an entertainer or a sportsman from activities carried out in a Contracting State, if the stay in that State is financed exclusively or principally by means of public funds of a Contracting State or both Contracting States or their political subdivisions or local authorities. In this case, income is taxable only in the Contracting State of which the performer or athlete is a resident.
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 ensure social well-being.
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 and 18 apply to salaries, salaries and other similar remuneration as well as to pensions paid for services rendered in the course of an industrial or commercial activity carried out by a Contracting State or one of its political subdivisions or local authorities.
Rule 20
Students
The sums that a student, apprentice or trainee who is, or who was immediately before going to a Contracting State, a resident of the other Contracting State and who resides in the first State for the sole purpose of pursuing his or her studies or training shall be paid to cover his or her maintenance, education or training expenses shall not be taxable in that State, provided that they arise from sources outside that State.
Article 21
Other income
1. The income elements of a resident of a Contracting State, wherever they arise, which are not dealt with in the preceding articles of this Convention shall be taxable only in that State.
2. The provisions of paragraph 1 shall not apply to income other than income derived from real property as defined in Article 6, paragraph 2, where the beneficiary of such income, a resident of a Contracting State, carries on in the other Contracting State, 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 therein shall, In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
3. Notwithstanding the provisions of paragraphs 1 and 2, the income elements of a resident of a Contracting State that are not dealt with in the preceding articles of this Convention and that come from the other Contracting State shall also be taxable in that other State.
CHAPTER IV. - Methods to eliminate double taxation
Article 22
Elimination of double taxation
1. With respect to Estonia, double taxation is avoided as follows:
(a) Where a resident of Estonia receives income that, in accordance with this Convention, is taxable in Belgium, Estonia, unless its domestic law provides for a more favourable plan, grants, on the tax it receives on the income of that resident, a deduction of an amount equal to the income tax paid in Belgium on such income.
However, this deduction cannot exceed the portion of Estonian tax on income, calculated before deduction, corresponding to taxable income in Belgium.
(b) Within the meaning of subparagraph (a), where a corporation that is a resident of Estonia receives a dividend from a corporation that is a resident of Belgium and in which it has at least 10 per cent of the shares with a voting right, the tax paid in Belgium includes not only the tax paid on the dividend, but also the fraction of the tax paid on the profits of the corporation that corresponds to the profits that have served the payment of the dividend.
2. With regard to Belgium, double taxation is avoided as follows:
(a) Where a Belgian resident receives income that is taxed in Estonia 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 revenues, but it may, in calculating the amount of its taxes on the rest of the income of that resident, apply the same rate as if the income in question had not been exempted.
(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 or her total income subject to Belgian tax and that consist of taxable dividends in accordance with Article 10, paragraph 2, and not exempted from Belgian tax under (c) below, in taxable interest in accordance with Article 11, paragraphs 2 or 7,
(c) Dividends within the meaning of Article 10, paragraph 3, that a corporation that is a resident of Belgium receives from a company that is a resident of Estonia are exempted from corporate tax in Belgium, under the conditions and limits provided for in Belgian law.
(d) Where, in accordance with Belgian law, losses incurred by a company operated by a resident of Belgium in a permanent establishment located in Estonia were 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 that are attributable to that establishment, to the extent that these profits were also exempted from tax in Estonia due to their losses.
CHAPTER V. - Special provisions
Article 23
Non-discrimination
1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or obligation relating thereto, which is other or heavier than those to which nationals of that other Contracting State are or may be subject to the same situation, particularly in respect of the residence. This provision also applies, notwithstanding the provisions of 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, particularly in respect of the residence.
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, Article 11, paragraph 7 or Article 12, paragraph 6, are applicable, 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, on the same terms as if they had been paid 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.
Article 24
Friendly procedure
1. Where a person considers that the measures taken by a Contracting State or by the two Contracting States shall result in or result in taxation not in accordance with the provisions of this Convention, the person may, independently of the remedies provided by the domestic law of those States, submit his case to the competent authority of the Contracting State of which the person is a resident or, if the case falls under Article 23, paragraph 1, to that of the Contracting State of which the person 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 claim appears to it to be justified and if it is not itself in a position to provide a satisfactory solution, to resolve the case by 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 may communicate directly with each other in order to reach agreement within the meaning of the preceding paragraphs.
Rule 25
Exchange 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 26
Recovery assistance
1. The Contracting States undertake to lend themselves mutual assistance for the purpose of recovering the taxes due by a taxpayer, to the extent that the amount of such assistance has been finalized in accordance with the legislation of the Contracting State which introduces the request for assistance.
2. When a Contracting State makes an application for the recovery of taxes by the other Contracting State, that other State shall recover such taxes in accordance with the law applicable to the collection of its own taxes and as if the taxes subject to the application were its own taxes; these tax claims, however, do not enjoy any privilege in the other Contracting State.
3. Any request for recovery assistance filed by a Contracting State shall be accompanied by the attestation required by the law of that State for the purpose of certifying that the taxes due by the taxpayer are finalised.
4. Where the fiscal debt of a Contracting State is not established on a final basis because it is subject to appeal, that State may, in order to preserve its revenues, request the other Contracting State to take on its behalf the precautionary measures provided for in the legislation of that other State. If this other State accepts this request, it shall take the same precautionary measures as if the taxes due to the first State were its own taxes.
5. A Contracting State does not introduce a request in accordance with paragraphs 3 or 4 to the extent that the taxpayer in respect of taxes does not have sufficient property in that State to guarantee the recovery of taxes due.
6. The Contracting State that recovers a tax in accordance with the provisions of this Article shall immediately transfer to the Contracting State on whose behalf the tax has been recovered the amount so recovered, if it is purchased, of the amount of the extraordinary expenses referred to in paragraph 7, (b) .
7. Unless otherwise agreed by the competent authorities of the two Contracting States, it is understood that,
(a) the ordinary costs incurred by a Contracting State to provide assistance shall be borne by that State;
(b) the extraordinary costs incurred by a Contracting State in providing assistance shall be borne by the other State and shall be paid by that other State irrespective of the amount recovered on its behalf.
As soon as a Contracting State provides that extraordinary expenses may be incurred, it shall notify the other Contracting State and indicate the estimated amount of such costs.
8. In this article, the term "taxes" means the taxes to which the Convention applies and includes the interests and fines related to it.
9. The provisions of Article 25, paragraph 1, concerning the secret nature and use of information exchanged shall also apply to any information provided under this Article to the competent authority of a Contracting State.
Rule 27
Members of diplomatic missions and consular posts
The provisions of this Convention shall not affect the tax privileges enjoyed by members of diplomatic missions or consular posts under either the general rules of the law of people or the provisions of special agreements.
Rule 28
Limitation of benefits
A person who is a resident of a Contracting State and who derives income from the other Contracting State may not benefit from the exemptions or tax reductions normally provided for in this Convention, where the principal purpose or any of the principal purposes of any person concerned by the creation or assignment of such income elements was to take advantage of the provisions of this Convention.
For the purposes of this Article, the qualified competent authority or the qualified competent authorities shall have the right to consider, among other factors, the amount and nature of the income, the circumstances in which the income has been collected, the real intention of the parties to the transaction, and the identity and residence of persons who, in law or in fact, directly or indirectly, are the beneficial owners of the income or control the persons who are residents of the Contracting State.
CHAPTER VI. - Final provisions
Rule 29
Entry into force
1. The Governments of the Contracting States shall notify the fulfilment of the constitutional procedures required for the entry into force of this Convention.
2. The Convention shall enter into force on the date of the second notification referred to in paragraph 1, and its provisions shall apply in both Contracting States:
(a) with respect to taxes at source, income from 1er January of the calendar year immediately following that of the entry into force of the Convention;
(b) other income taxes for any taxation year beginning on or after 1er January of the calendar year immediately following that of the entry into force of the Convention.
Rule 30
Denunciation
This Convention shall remain in force until it has been denounced by a Contracting State. Each Contracting State may denounce it in writing and through diplomatic channels at least six months before the end of any calendar year. In this case, the Convention shall cease to apply in both Contracting States:
(a) with respect to taxes at source, income from 1er January of the calendar year immediately following the denunciation;
(b) other income taxes for any taxation year beginning on or after 1er January of the calendar year immediately following the denunciation.
In faith, the undersigned, to this duly authorized, have signed this Convention.
Done in Brussels on 5 November 1999, in duplicate, in French, Dutch, English and Estonian, the four texts being equally authentic. The English language text will prevail in the event of a discrepancy of interpretation.

PROTOCOLE
At the time of the signing of the Convention between the Republic of Estonia and the Kingdom of Belgium to avoid double taxation and to prevent tax evasion in respect of income taxes, the undersigned agreed on the following provisions which are an integral part of the Convention.
1. Ad Article 4, paragraph 3
It is understood that the second sentence of paragraph 3 cannot be interpreted as preventing a Contracting State from eliminating double taxation in accordance with Article 22 with respect to persons referred to in Article 4, paragraph 3.
2. Ad Article 6, paragraph 2
It is understood that the term "variable or fixed payments for the exploitation or concession of the exploitation of mineral deposits, sources and other natural resources" also includes payments varying depending on the production of such resources.
3. Ad Article 6, paragraph 3, and Article 13, paragraph 1
It is understood that all incomes and gains from the alienation of real property are taxable in the Contracting State where real property is located.
4. Ad Article 7, paragraphs 1 and 2
Where a business of a Contracting State sells goods or carries on an industrial or commercial activity in the other Contracting State through a permanent establishment located therein, the profits of that permanent establishment are not determined on the basis of the total amount received by the undertaking but only on the basis of the remuneration that is attributable to the actual activity of the permanent establishment regarding such sales or activity.
However, profits derived from the sale of goods of an identical or similar nature to those sold through this permanent establishment, or other commercial activities of a similar or similar nature to those carried out through that permanent establishment, may be considered to be attributable to that permanent establishment if it is established that the sale or activities were organized in a manner that prevents taxation in the State where the permanent establishment is located.
5. Ad Article 10, paragraph 3
The term "dividends" also includes revenues - even attributed in the form of interest - subject to the same regime as the revenues of shares by the law of the State whose debiting society is a resident.
6. Ad Article 12, paragraphs 2 and 3
If, in a Convention for the Prevention of Double Taxation concluded with a third State that, on the date of signature of this Convention, is a member of the Organisation for Economic Cooperation and Development (OECD), Estonia agrees, after that date, to exclude rights or property from the definition contained in paragraph 3, or to exempt from tax Estonia the royalties derived from the definition, or to limit the
7. Ad Article 12, paragraph 3
It is understood that the term "information relating to an experience gained in the industrial, commercial or scientific field" must be interpreted in accordance with the Comments on Article 12, paragraph 2, of the OECD Model Tax Convention on Income and Capital.
8. Ad Article 13, paragraph 2
For the purposes of paragraph 2, it is understood that gains arising from the alienation of shares shall be taxable in a Contracting State only to the extent that the value of such shares comes directly or indirectly from real property located in that State.
9. Ad Article 15
It is understood that 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, which is a resident of the other Contracting State, is taxable in accordance with the provisions of Article 15, as if it were remuneration that an employee derives from an employee employment and as if the employer were the corporation.
In faith, the undersigned, to this duly authorized, have signed this Protocol.
Done in Brussels on 5 November 1999, in duplicate, in French, Dutch, English and Estonian, the four texts being equally authentic. The English language text will prevail in the event of a discrepancy of interpretation.