10 AOUT 2001. - An Act to assent to the Convention between the Kingdom of Belgium and the Republic of Slovenia to avoid double taxation and to prevent tax evasion in respect of income and property taxes, signed at Ljubljana on 22 June 1998 (1) (2) (2)

ALBERT II, King of the Belgians,
To all, present and to come, Hi.
The Chambers adopted and We sanction the following:
Article 1^er. This Act regulates a matter referred to in Article 77 of the Constitution.
Art. 2. The Convention between the Kingdom of Belgium and the Republic of Slovenia aimed at avoiding double taxation and preventing tax evasion on income and wealth taxes, signed in Ljubljana on 22 June 1998, will come out its full and full effect.
Promulgation of this law, let us order that it be clothed with the seal of the State and published by the Belgian Monitor.
Given in Nice on 10 August 2001.
ALBERT
By the King:
Minister of Foreign Affairs,
L. MICHEL
Minister of Finance,
D. REYNDERS
Deputy Minister for Foreign Affairs,
Ms. A. NEYTS-UYTTEBROECK
Seal of the state seal:
Minister of Justice,
Mr. VERWILGHEN
____
Notes
(1) Session 2000-2001.
Senate.
Documents. - Bill, tabled on March 26, 2001, No. 2-707/1. - Report, no. 2-707/2. - Text adopted by the Commission.
Annales parliamentarians. - Discussion, meeting of May 3, 2001. - Vote, meeting of 3 May 2001.
Room.
Documents. - Project transmitted by the Senate, No. 50-1237/1. - Text adopted in plenary and subject to Royal Assent, No. 50-1237/2.
Annales parliamentarians. - Discussion, meeting of the 14th Juni 2001. - Voting, meeting of 14 June 2001.
(2) In accordance with article 28, instruments of ratification were exchanged on 17 September 2002. This agreement entered into force on 2 October 2002.

CONVENTION AGAINST BELGIUM ROYAUME AND THE REPUBLIC OF SLOVENIA AGAINST IMPOSITION DOUBLES AND FIRST THE FISCALE EVASION IN MATIERE D'IMPOTS SUR LE REVENU ET SUR LA FORTUNE
The Government of the Kingdom of Belgium and the Government of the Republic of Slovenia,
Desiring to conclude a Convention to avoid double taxation and to prevent tax evasion in respect of income and property taxes, have agreed on the following provisions:
CHAPTER I^er. - Scope of the Convention
Article 1^er
PERSONS
This Convention applies to persons who are residents of a Contracting State or both Contracting States.
Article 2
IMPOTS VISES
1. This Convention applies to taxes on income and on property collected on behalf of a Contracting State, its political subdivisions or local authorities, irrespective of the system of perception.
2. The taxes on total income, total property, or income or property, including taxes on earnings from the alienation of movable or real estate property, taxes on the total amount of wages paid by companies, as well as taxes on surplus-values, are considered income and property taxes.
3. Current taxes to which the Convention applies include:
(a) with regard to Slovenia:
1° the tax on the profits of legal persons, including revenues from transport services collected by a foreign person who does not have their agency in the territory of the Republic of Slovenia;
2° the income tax of natural persons, including wages, income from agricultural activities, income from industrial or commercial activities, surplus-values, and income from real property and furniture;
3° the property tax,
(hereinafter referred to as "Slovene tax").
(b) with regard to Belgium:
1° the tax of natural persons;
2° corporate tax;
3° the tax of legal persons;
4° the non-resident tax;
5° the special contribution assimilated to the tax of natural persons;
6° 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) 1° 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;
2° the term "Slovenia" means the Republic of Slovenia; employed in a geographical sense, it designates the territory of the Republic of Slovenia, including the territorial sea and the maritime areas and airspace on which, in accordance with international law, the Republic of Slovenia exercises sovereign rights or jurisdiction;
(b) the terms "a Contracting State" and "the other Contracting State" mean, in the context, Belgium or Slovenia;
(c) the term "person" includes individuals, societies and other groups of persons;
(d) the term "corporate" means any corporation or entity that is considered to be a corporation for taxation purposes;
(e) the terms "company of a Contracting State" and "company of the other Contracting State" shall, respectively, designate a business operated by a resident of a Contracting State and a business operated by a resident of the other Contracting State;
(f) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise whose effective steering seat is located in a Contracting State, except where the vessel or aircraft is operated only between points in the other Contracting State;
(g) the term "competent authority" means:
1° with respect to Slovenia, the Ministry of Finance or its authorized representative, and
2° in respect of Belgium, the Minister of Finance or its authorized representative;
(h) the term "nationals" means:
1° all natural persons who possess the nationality of a Contracting State;
2° all legal persons, societies of persons and associations constituted in accordance with the legislation in force in a Contracting State.
2. For the purposes of the Convention by a Contracting State, any expression not defined therein shall have the meaning assigned to it by the law of that State concerning the taxes to which the Convention applies, unless the context requires a different interpretation.
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 or any other similar criterion. However, this term does not include persons who are subject to tax in that State only for income from sources located in that State or for the property located therein.
2. Where, according to the provisions of paragraph 1, a natural person is a resident of the two Contracting States, his or her situation shall be settled as follows:
(a) that person is considered to be a resident 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 of the State with which its personal and economic ties are the narrowest (centre of vital interests);
(b) if the State in which that person has the centre of his or her 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 of the State in which 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 of the State of which he or she is a national;
(d) if the person possesses the nationality of the two States or has no nationality of any of them, the competent authorities of the Contracting States shall decide the question by mutual agreement.
3. Where, according to the provisions of paragraph 1, a person other than a natural person is a resident of the two Contracting States, it is considered to be a resident of the State where its effective management seat is located.
Article 5
STABLE FULLING
1. For the purposes of this Convention, the term "stable establishment" means a fixed business facility through which a company operates all or part of its business.
2. The term "stable establishment" includes:
(a) a steering seat,
(b) a branch,
(c) an office,
(d) a factory,
(e) a workshop, and
(f) a mine, oil or gas well, a career or any other place of extraction of natural resources.
3. The term "stable establishment" also encompasses a construction or assembly site or monitoring activities in the construction site, but only when the construction site has or these activities last more than twelve 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.
7. The fact that a corporation that is a resident of a Contracting State controls or is controlled by a corporation that is a resident of the other Contracting State or that operates therein (either through a permanent establishment or not) is not sufficient in itself to make any of these companies a permanent establishment of the other.
CHAPTER III. - Income tax
Article 6
REVENUS IMMOBILIERS
1. The income that a resident of a Contracting State derives from real property (including income from farms or forestry) located in the other Contracting State, is taxable in that other State.
2. The term "real property" has the meaning assigned to it by the law of the Contracting State in which the property is located. The term includes, in any case, accessories, dead or alive livestock of farms and forests, the rights to which the provisions of private law apply in respect of land ownership, the usufruct of real property and the rights to variable or fixed payments for the exploitation or concession of the exploitation of mineral deposits, sources and other natural resources; ships, 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. The provisions of paragraphs 1 and 3 also apply to income from real property of a business as well as to income from real property used in the exercise of an independent profession.
Article 7
BENEFICES DES ENTREPRISES
1. The profits of an enterprise of a Contracting State shall be taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located therein. If the company operates in such a way, the profits of the company are taxable in the other State but only to the extent that they are attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3, where a business of a Contracting State carries on business in the other Contracting State through a permanent establishment located therein, it shall be charged, in each Contracting State, to that permanent establishment the profits that it could have realized if it had constituted a separate undertaking carrying out identical or similar activities under identical or similar conditions and dealing independently with the enterprise of which it constitutes a permanent establishment.
3. In order to determine the benefits of a permanent establishment, deductions are made of the expenses incurred for the purposes of this permanent establishment, including the executive expenses and general administrative expenses so exposed, either in the State where the permanent establishment is located or elsewhere.
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.
Article 8
MARITIME AND AERIENNE NAVIGATION
1. The profits derived from the operation, in international traffic, of ships or aircraft shall be taxable only in the Contracting State where the effective management seat of the enterprise is located.
2. For the purposes of this section, benefits derived from the operation, in international traffic, of ships or aircraft include:
(a) the casual profits from the bare hull rental of ships or aircraft operated in international traffic;
(b) profits derived from the use or lease of containers, provided that these benefits are complementary or incidental to the benefits to which the provisions of paragraph 1 are applicable.
3. If the effective management seat of a marine navigation company is on board a vessel, that seat shall be considered to be located in the Contracting State where the vessel's port of attachment is located, or if the vessel is not carrying the vessel, in the Contracting State of which the vessel operator is a resident.
4. The provisions of paragraph 1 also apply to benefits derived from participation in a pool, a joint operation or an international operating organization.
Article 9
ENTREPRISES ASSOCIEES
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.
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 founder or other share of beneficiaries with the exception of receivables, as well as income - even allocated in the form of interest - subject to the same tax regime as income from shares by the law of the State whose debiting society is a resident.
4. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the dividends, a resident of a Contracting State, exercises in the other Contracting State whose dividend paying company is a resident, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the dividend-generating interest is effectively connected to it. In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
5. Where a corporation that is a resident of a Contracting State derives from the profits or income of the other Contracting State, that other State may not collect any tax on the dividends paid by the corporation, except to the extent that such dividends are paid to a resident of that other State or to the extent that the dividend-generating interest is effectively connected to a permanent establishment or to a fixed base located in that other State, or prelever any
Article 11
INTERETS
1. Interest arising from a Contracting State and paid to a resident of the other Contracting State shall be taxable in that other State.
2. However, these interests are also taxable in the Contracting State in which they arise and according to the law of that State, but if the 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 shall be exempted from tax in the Contracting State from which it arises when it is:
(a) interest in commercial receivables - including those represented by commercial effects - resulting from the payment of goods, goods or services by companies in the future;
(b) interest paid on the basis of a loan made, guaranteed or insured, or credit granted, guaranteed or insured by public bodies whose purpose is to promote exports;
(c) interest paid to the other Contracting State or to any of its political subdivisions or local authorities.
4. The term "interest" used in this section refers to income from receivables of any kind, whether or not accompanied by mortgage guarantees or an interest clause in the debtor's profits, including income from public funds and borrowing obligations, including premiums and lots attached to these securities. However, this term does not include, within the meaning of this section, penalties for late payment or interest treated as dividends under section 10, paragraph 3.
5. The provisions of paragraphs 1, 2 and 3 shall not apply where the beneficial owner of the interest, a resident of a Contracting State, carries on in the other Contracting State in which the interest arises, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the interest-generating debt is effectively linked to it. In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
6. Interest shall be deemed to arise from a Contracting State where the debtor is that State itself, a political subdivision, a local authority or a resident of that State. However, where the debtor of interest, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment, or a fixed base, for which the debt giving rise to the payment of interest has been contracted and which bears the burden of such interests, these shall be deemed to arise from the State where the permanent establishment or fixed base is located.
7. Where, because of special relations between the debtor and the beneficial owner or between the debtor and the other person maintain with third persons, the amount of interest, taking into account the debt for which they are paid, exceeds the amount agreed upon by the debtor and the beneficial owner in the absence of such relations, the provisions of this Article shall apply only to the latter amount. In this case, the surplus portion of the payments shall remain taxable, in accordance with its legislation, in the Contracting State from which the interest arises.
Article 12
REDEVANCES
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, these 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 5 per cent of the gross amount of these royalties.
3. The term " royalties" 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 openness, including film films and films or tapes registered for radio or television, a patent, a trademark or trade mark, a drawing or a model, a plan, an industrial process or a secret line
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 come from a Contracting State when the debtor is that State itself, a political subdivision, a local authority or a resident of that State. However, where the debtor of royalties, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment, or a fixed base, for which the contract giving rise to the payment of royalties has been concluded and which bears the charge of such royalties, these shall be deemed to be from the State where the permanent establishment, or 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 this case, the surplus portion of the payments shall remain taxable, in accordance with its legislation, in the Contracting State from which royalties arise.
Article 13
GAINS EN CAPITAL
1. The gains derived by a resident of a Contracting State from the alienation of real property referred to in Article 6 and situated in the other Contracting State shall be taxable in that other State.
2. The gains from the alienation of movable property that are part of the assets of a permanent establishment that a business of a Contracting State has in the other Contracting State, or of movable property that belong to a fixed base of which a resident of a Contracting State disposes in the other Contracting State for the exercise of an independent profession, including such gains from the alienation of that permanent establishment (ully or with
3. Gains derived from the alienation of ships or aircraft operated in international traffic or movable property assigned to the operation of such vessels or aircraft shall be taxable only in the Contracting State where the effective management seat of the enterprise is located.
4. Gains derived from the alienation of any property other than those referred to in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the assignor is a resident.
Article 14
INDEPENDENT PROFESSIONS
1. The income derived by a resident of a Contracting State from a liberal profession or other activities of an independent character shall be taxable only in that State, unless that resident has in the other Contracting State a fixed basis for the exercise of his or her activities in an ordinary manner. If it has such a fixed base, income may be taxed in the other State but only to the extent that it is attributable to that fixed base.
2. The term "liberal profession" includes independent scientific, literary, artistic, educational or educational activities, as well as independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15
PROFESSIONS
1. Subject to the provisions of Articles 16, 18, 19 and 20, 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 shall be taxed in the Contracting State where the effective management seat of the enterprise is located.
Article 16
SOCIETY DIRIGEANTS
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. The remuneration that a person referred to in paragraph 1 shall receive from the corporation because of the exercise of a daily activity of direction or technical character and the remuneration that a resident of a Contracting State derives from his or her personal activity as a partner in a corporation, other than a corporation by shares, that is a resident of the other Contracting State, shall be taxable in accordance with the provisions of Article 15, as if it were employment
Article 17
ARTISTS AND SPORTIFS
1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State from his or her personal activities in the other Contracting State as an artist of the spectacle, such as a theatre, cinema, radio or television artist, or a musician, or as a sportsman, may be taxed in that other State.
2. Where the income of activities that an entertainer or a sportsperson exercises personally and in this capacity is attributed not to the artist or to the athlete himself but to another person, such income shall be taxable, notwithstanding the provisions of Articles 7, 14 and 15, in the Contracting State where the activities of the artist or athlete are carried out.
3. The provisions of paragraphs 1 and 2 shall not apply if the activities carried out in a Contracting State are financed primarily by public funds of the other Contracting State or one of its political subdivisions or local authorities. In this case, income derived from these activities shall be taxable only in that other Contracting State.
Article 18
PENSIONS
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.
Article 19
PUBLIC FUNCTIONS
1. (a) Compensation, 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 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:
1 has the nationality of that State, or
2 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 remuneration and pensions paid for services rendered in an industrial or commercial activity carried out by a Contracting State or one of its political subdivisions or local authorities.
Rule 20
PROFESSeurs ETUDIANTS
1. Any remuneration of teachers and other members of the teaching staff and of researchers, residents of a Contracting State, who reside in the other Contracting State to teach or undertake scientific research in a university or other officially recognized educational institution, shall be exempted from tax in that other State for a period not exceeding two years from the date of arrival of such persons in that other State. Previous provisions do not apply to income from teaching or research if these activities are carried out not in the general interest but mainly in the private interest of one or more persons.
2. A student or trainee who is, or who was immediately before going to a Contracting State, a resident of the other Contracting State and who is temporarily residing in the first State for the sole purpose of continuing his or her studies or training, is exempted in that State:
(a) the amounts received from sources outside the State to cover its costs of maintenance, study or training;
(b) on remuneration received for an employee employed in that State in connection with its education or training and for the normal duration of such remuneration, if such remuneration does not exceed as the case may be, by calendar year 150,000 Belgian francs or the equivalent of that sum in Slovenian currency during the official exchange.
Article 21
OTHER REVENUS
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 and which are imposed in that State 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.
CHAPTER IV. - Imposition of fortune
Article 22
FORTUNE
1. The property constituted by real property referred to in Article 6, which is owned by a resident of a Contracting State and situated in the other Contracting State, is taxable in that other State.
2. The property constituted by movable property that is part of the asset of a permanent establishment that a business of a Contracting State has in the other Contracting State, or by movable property that is owned by a fixed base of which a resident of a Contracting State has in the other Contracting State for the exercise of an independent profession, is taxable in that other State.
3. Assets made by ships and aircraft operated in international traffic and by movable property assigned to the operation of such ships or aircraft shall be taxable only in the Contracting State where the effective management seat of the enterprise is located.
4. All other assets of a resident of a Contracting State shall be taxable only in that State.
CHAPTER V. - Methods to eliminate double taxation
Article 23
1. With regard to Slovenia, double taxation is avoided as follows:
(a) When a resident of Slovenia receives income or has property that, in accordance with the provisions of this Convention, is taxable in Belgium, Slovenia grants:
1 on the tax it receives on the income of that resident, a deduction of an amount equal to the income tax paid in Belgium;
2 on the tax it receives on the fortune of that resident, a deduction of an amount equal to the tax on the fortune paid in Belgium.
In no case may this deduction exceed the portion of income tax or capital tax, calculated before deduction, corresponding to income or taxable capital in Belgium.
(b) Notwithstanding the provisions of (a), dividends within the meaning of Article 10, paragraph 3, that a corporation that is a resident of Slovenia receives from a corporation that is a resident of Belgium are exempted from the profits tax of legal persons in Slovenia, under the conditions provided for in Slovenian legislation.
(c) Where, in accordance with any provision of the Convention, the income that a resident of Slovenia receives or the fortune that he owns is tax-free in that State, Slovenia may, however, in calculating the amount of tax on the remainder of the income or fortune of that resident, take into account the exempt income or fortune.
2. With regard to Belgium, double taxation is avoided as follows:
(a) When a Belgian resident receives income or owns assets that are taxed in Slovenia in accordance with the provisions of the Convention, with the exception of those of articles 10, paragraph 2, 11, paragraphs 2 and 7, and 12, paragraphs 2 and 6, Belgium exempts from tax these incomes or assets, but it may, in order to calculate the amount of its taxes on the rest of the income or fortune of that resident, apply the same rate as if the assets were 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, paragraph 2 or
(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 Slovenia are exempted from the 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 Slovenia 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 attributable to that establishment, to the extent that such profits were also exempted from tax in Slovenia due to their compensation with
CHAPTER VI. - Special provisions
Article 24
NON-DISCRIMINATION
1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or obligation relating thereto, which is other or heavier than those to which nationals of that other Contracting State are or may be subject to the same situation, particularly in respect of the residence. This provision also applies, notwithstanding the provisions of section 1^erpersons who are not residents of a Contracting State or both Contracting States.
2. Stateless persons who are residents of a Contracting State shall not be subject in either Contracting State to any taxation or relative obligation that is other or heavier than those to which nationals of the State concerned are or may be subject in the same situation.
3. The imposition of a permanent establishment that a business of a Contracting State has in the other Contracting State is not established in that other State in a less favourable manner than the taxation of the enterprises of that other State that exercise the same activity. This provision shall not be construed as requiring a Contracting State to grant personal deductions, deductions and tax reductions to the residents of the other Contracting State on the basis of the situation or family expenses that it grants to its own residents.
4. Unless the provisions of Article 9, Article 11, paragraph 7, or Article 12, paragraph 6, are applicable, interest, royalties and other expenses paid by an enterprise of a Contracting State to a resident of the other Contracting State shall be deductible, for the determination of the taxable profits of that undertaking, under the same conditions as if they had been paid to a resident of the first Contracting State. Similarly, the debts of an enterprise of a Contracting State to a resident of the other Contracting State shall be deductible, for the determination of the taxable fortune of that undertaking, on the same basis as if they had been contracted to a resident of the first Contracting State.
5. The undertakings of a Contracting State, whose capital is wholly or partly, directly or indirectly, held or controlled by one or more residents of the other Contracting State, shall not be subject in the first State to any taxation or obligation relating thereto, which is other or heavier than those to which the other similar enterprises of the first State are or may be subject.
6. Nothing in this article shall be construed as preventing:
(a) Belgium to impose at the rate provided by Belgian legislation the benefits of a permanent Belgian establishment of a company that is a resident of Slovenia, provided that the above-mentioned rate does not exceed the maximum rate applicable to the profits of the companies that are residents of Belgium;
(b) a Contracting State to withdraw its deduction from the source on the dividends associated with an effective interest in a stable establishment in that State a corporation that is a resident of the other Contracting State.
7. The provisions of this section shall apply, notwithstanding the provisions of section 2, to taxes of any kind or denomination.
Rule 25
AMIABLE PROCEDURE
1. Where a person considers that the measures taken by a Contracting State or by the two Contracting States shall result in or result in taxation not in accordance with the provisions of this Convention, the person may, independently of the remedies provided by the domestic law of those States, submit his case to the competent authority of the Contracting State of which he is a resident or, if his case falls under Article 24, paragraph 1, to that of the Contracting State of which he or she is a national. The case shall be submitted within three years after the first notification of the measure that results in taxation not in conformity with the provisions of the Convention.
2. The competent authority shall endeavour, if the request appears to it to be founded and if it is not itself able to make a satisfactory solution to it, to resolve the case by amicable agreement with the competent authority of the other Contracting State, with a view to avoiding taxation not in conformity with the Convention.
3. The competent authorities of the Contracting States shall endeavour, by mutual agreement, to resolve the difficulties or to dispel the doubts to which the interpretation or application of the Convention may take place.
4. The competent authorities of the Contracting States shall agree on the administrative measures necessary for the implementation of the provisions of the Convention and in particular on the justifications to be provided by the residents of each Contracting State for the benefit in the other State of the exemptions or tax reductions provided for in this Convention.
5. The competent authorities of the Contracting States shall communicate directly with each other for the purposes of the Convention.
Rule 26
ECHANGE OF INFORMATION
1. The competent authorities of the Contracting States shall exchange the information necessary to apply 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^er. 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 27
MEMBERS OF A DIPLOMATIC MISSION OR A CONSULAR POST
The provisions of this Convention shall not affect the tax privileges enjoyed by members of a diplomatic mission or consular post under either the general rules of human rights or the provisions of special agreements.
CHAPTER VII. - Final provisions
Rule 28
BACKGROUND
1. This Convention will be ratified and instruments of ratification will be exchanged in Brussels. The Convention will enter into force on the fifteenth day following that of the exchange of instruments of ratification.
2. The provisions of the Convention shall apply:
(a) taxes due to the source on income awarded or paid from 1^er January of the year immediately following that of the exchange of instruments of ratification;
(b) other taxes on taxable period income starting from 1^er January of the year immediately following that of the exchange of instruments of ratification;
(c) capital taxes on assets existing as at 1^er January of any year after that of the exchange of instruments of ratification.
3. The provisions of the Convention between the Federal Socialist Republic of Yugoslavia and the Kingdom of Belgium to avoid double taxation on income and capital, signed in Belgrade on 21 November 1980, shall cease to apply to any Belgian or Slovenian tax relating to income for which this Convention has effect with respect to this tax, in accordance with the provisions of paragraph 2.
Rule 29
DENONCIATION
This Convention shall remain in force as long as it has not been denounced by a Contracting State, but each of the Contracting States may, until 30 June inclusive of any calendar year from the fifth year following that of the exchange of instruments of ratification, denounce it, in writing and through diplomatic channels, to the other Contracting State. In case of denunciation before 1^er July of such a year, the Convention will cease to apply:
(a) taxes due to the source on income awarded or paid from 1^er January of the year immediately following the denunciation;
(b) other taxes on taxable period income starting from 1^er January of the year immediately following the denunciation;
(c) capital taxes on assets existing as at 1^er January of any year after the denunciation.
In faith, the undersigned, duly authorized by their respective Governments, have signed this Convention.
Done in Ljubjana, on 22 June 1998, in duplicate, in the Slovenian, French, Dutch and English languages, all texts being equally authentic. The English language text will prevail in the event of a discrepancy between the texts.
For the Government of the Kingdom of Belgium:
Prime Minister,
J.-L. DEHAENE
For the Government of the Republic of Slovenia:
Prime Minister,
J. DRNOSEK