Law Approving The Convention Between The Government Of The Kingdom Of Belgium And The Government Of The Slovak Republic For The Avoidance Of Double Taxation And Fiscal Evasion With Respect To Taxes On Income And On Capital,

Original Language Title: Loi portant assentiment à la Convention entre le Gouvernement du Royaume de Belgique et le Gouvernement de la République slovaque tendant à éviter les doubles impositions et à prévenir l'évasion fiscale en matière d'impôts sur le revenu et sur la fortune,

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Posted the: 2000-06-15 Numac: 2000015035 Ministry of Foreign Affairs, international trade and international COOPERATION 1 March 2000. -Law concerning consent to the agreement between the Government of the Kingdom of Belgium and the Government of the Slovak Republic for the avoidance of double taxation and the prevention of evasion tax taxes on income and on capital, signed at Brussels on 15 January 1997 (1) (2) ALBERT II, King of the Belgians, has all, present and future Hello.
Article 1. This Act regulates a matter referred to in article 77 of the Constitution.
S.
2. the Convention between the Government of the Kingdom of Belgium and the Government of the Slovak Republic for the avoidance of double taxation and to prevent fiscal evasion with respect to taxes on income and on capital, signed at Brussels on 15 January 1997, will release its full and complete effect.
Promulgate this Act, order it to be coated with the seal of State and published by le Moniteur.
Given at Chateauneuf-de-Grasse, March 1, 2000.
ALBERT by the King: the Minister of Foreign Affairs, L. MICHEL. the Minister of finance, D. REYNDERS. the Secretary of State for external trade, P. Knight sealed with the seal of the State: the Minister of Justice, Mr. VERWILGHEN Sénat.
_ (1) 1999-2000 session.
Documents. -Bill, filed November 18, 1999, no. 2 - 166/1. Report, no. 2-166/2. -Text adopted by the Commission, no 2-166/3.
Parliamentary Annals. -Discussion, meeting of December 7, 1999. Vote, meeting of December 7, 1999.
Room.
Documents. -Draft transmitted by the Senate, no. 50-337/1. -Text adopted in plenary and subject to Royal assent, meeting No. 50-337/2.
Parliamentary Annals. -Discussion, meeting of December 21, 1999.Vote, January 20, 2000 meeting.
(2) pursuant to the provisions of article 29 this convention enters into force on 13 June 2000.

Convention between the Government of the Kingdom of Belgium and the Government of the Slovak Republic for the avoidance of double taxation and prevent fiscal evasion with respect to taxes on income and on capital the Government of the Kingdom of Belgium and the Government of the Slovak Republic, desiring to conclude a Convention for the avoidance of double taxation and prevent fiscal evasion with respect to taxes on income and on capital , have agreed upon the following provisions: Chapter I. -FIELD of APPLICATION of the CONVENTION Article 1 persons covered this Convention shall apply to persons who are residents of a Contracting State or the two Contracting States.
Article 2 taxes covered § 1 this Convention shall apply to taxes on income and on capital imposed on behalf of a Contracting State, its political subdivisions or its local authorities, irrespective of the collection system.
§ 2. Are considered as taxes on the income and on the fortune taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of property movable or immovable property, taxes on the total amount of salaries paid by enterprises, as well as taxes on capital gains.
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3. The existing taxes to which the Convention shall apply are in particular: has) with regard to the Belgium: (i) natural persons tax;
(ii) the corporation tax;
(iii) the income tax of legal persons;
(iv) the non-resident tax;
(v) the special assessment assimilated to income tax of physical persons;
(vi) the supplementary crisis contribution;
including the prepayments, pennies additional to such taxes and withholding taxes as well as taxes additional to natural persons tax, (hereinafter referred to as "Belgian tax");
(b) in relation to the Slovakia: (i) the tax on the income of natural persons: (ii) the tax on income of legal persons: (iii) the tax on real estate: including deductions at source and additional fees said taxes, (hereinafter referred to as "Slovak tax").
§ 4. The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention and additional to existing taxes or place. The competent authorities of the Contracting States shall communicate to the significant changes made to their respective taxation laws.
CHAPTER II. -DEFINITIONS Article 3 General DEFINITIONS § 1. For the purposes of this Convention, unless the context otherwise requires: a) the term "Belgium" means the Kingdom of Belgium; used in a geographical sense, it means the territory of the Kingdom of Belgium, including the territorial sea and maritime zones and the air space over which, in accordance with international law, the Kingdom of Belgium has sovereign rights or jurisdiction;
(b) the term "Slovakia", means the Slovak Republic; used in a geographical sense, it means the territory of the Slovak Republic over which the Slovak Republic has sovereign rights or jurisdiction in accordance with the rules of international law;
(c) the terms "A Contracting State" and "The other Contracting State" mean, as the context requires, the Belgium or the Slovakia;
(d) the term "person" includes natural persons, companies and any other body of persons;
(e) the term "company" means any legal person or any entity that is regarded as a legal person for the purposes of taxation in the State Contracting, which it is a resident.
(f) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
(g) the term "international traffic" means any transport by a ship, an aircraft or railway vehicle or road operated by an undertaking of which the place of effective management is situated in a Contracting State, except when the ship, aircraft or railway or road vehicle is operated solely between places in the other Contracting State;
(h) the term "national" means: (i) all individuals possessing the nationality of a Contracting State;
(ii) all legal persons, partnerships and associations established in accordance with the legislation in force in a Contracting State;
(i) the term "competent authority" means, in relation to both Contracting States, the Minister of finance or his authorized representative.
§ 2. For the purposes of the Convention by a Contracting State, any term which is not defined have the meaning attributed 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. Within the meaning of this Convention, the expression "resident of a Contracting State" means any person who, under the legislation of that State, is liable to tax in this State, because of his domicile, residence, place of management or any other criterion of a similar nature. However, this term does not include persons who are subject to tax in that State for income from sources in that State or capital which is located.
§ 2. When, under the provisions of paragraph 1 an individual is a resident of both Contracting States, his status is set as follows: has) this person is considered a resident of the State where it has a permanent home; If it has a permanent home in the two States, it is considered a resident of the State with which his personal and economic relations are closer (centre of vital interests);
(b) if the State where he has his centre of vital interests cannot be determined, or if it has a permanent home in any of the States, it is considered to be a resident of the State where she is staying in usual manner;
(c) whether he has habitual abode in both States or if it resides habitually in any of them, it is considered a resident of the State in which it is a national;
(d) If this person is a national of both States or it possesses the nationality of any of them, the competent authorities of the Contracting States settle the question by mutual agreement.
§ 3. When, under the provisions of paragraph 1 one person other than an individual is a resident of both Contracting States, it is considered to be a resident of the State in which its place of effective management is situated.
Article 5 permanent establishment § 1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which a company carries on all or part of its activity.
§ 2. The term "permanent establishment" includes especially: a) a place of management, b) a branch, c) desks, d) a plant,) e a workshop, and f) a mine, a well of oil or gas, a quarry or any other place of extraction of natural resources.
§ 3. A building site or construction or installation or monitoring or activities of consultants acting in connection with this site constitute a permanent establishment only if their duration exceeds twelve months.
§ 4. Notwithstanding the preceding provisions of this article, considering that there is no "permanent establishment" if:

(a) use is made of facilities for the sole purpose of storage, exposure or delivery of goods belonging to the enterprise;
(b) goods belonging to the company are stored for the sole purpose of storage, exposure or delivery;
(c) goods belonging to the company are stored for the sole purpose of processing by another enterprise;
(d) a fixed place of business is used solely to purchase merchandise or to gather information, for the enterprise;
(e) a fixed place of business is used for the sole purpose to exercise, for the enterprise, any other activity of a preparatory or auxiliary character;
((f) a fixed place of business is used for the sole purpose of fiscal year cumulative activities mentioned in paragraph a) to (e)), provided that the activity of the fixed place of business resulting from this combination set keeps a preparatory or auxiliary character.
§ 5. Notwithstanding the provisions of paragraphs 1 and 2, when a person-an agent of an independent status to which paragraph 6 applies acts on behalf of an enterprise and in a State Contracting powers exercised by it are usually to conclude contracts on behalf of the company, this company is considered as having a permanent establishment in that State for all the activities that this person performs for the company unless the activities of such person are limited to those mentioned in paragraph 4 and which, if they were exercised through a fixed place of business, would not consider this facility as a permanent establishment under the provisions of this paragraph.
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6. An enterprise of a Contracting State shall not be considered as having a permanent establishment in the other Contracting State merely that it carries on its business through a broker, general Commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary activity course.
§ 7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other State Contracting or which carries on business (whether through an establishment stable or not) does not, in itself, to make one any of these companies a permanent establishment of the other.
CHAPTER III. -TAXATION of income Article 6 income real estate § 1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry holdings) situated in the other Contracting State, may be taxed in that other State.
§ 2. The term "immovable property" has the meaning given to it by the law of the Contracting State where the property in question is situated.
The term includes in any case accessories, livestock dead or alive's farms and forestry, rights to which the provisions of private law concerning land ownership, usufruct of real property and rights to variable or fixed payments for the exploitation or concession of exploitation of deposits minerals, sources and other natural resources; ships, boats and aircraft are not considered to be real property.
§ 3.
The provisions of paragraph 1 shall apply to income derived from the use or the direct enjoyment of the rental or leasing, as well as any other form of immovable property.
§ 4. The provisions of paragraphs 1 and 3 shall apply also to income from real property of an enterprise and to income from real property used for the pursuit of an independent profession.
Article 7 business profits § 1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the company operates in the other State Contracting through a permanent establishment situated therein. If the enterprise carries on business in such a way, the profits of the enterprise are taxable in the other State but only insofar as they are attributable to that permanent establishment.
§ 2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other State Contracting through a permanent establishment situated, it is charged, in each Contracting State, to that permanent establishment profits that he could achieve if it had been a separate business operating identical or similar under conditions identical or similar and acting independently.
§ 3. In determining the profits of a permanent establishment, are allowed as deductions expenses incurred for the purposes of establishment, including Executive and general expenses so incurred administration, either in the State where the permanent establishment is situated or elsewhere.
§ 4. If it has been customary in a Contracting State to determine the profits attributable to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed according to the distribution in use; the adopted allocation method should be such that the result is consistent with the principles contained in this article.
§ 5. No benefit is attributed to a permanent establishment that he simply bought goods for the company.
§ 6 for the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined each year by the same method, unless there is valid and sufficient otherwise grounds.
§ 7. Where profits include items of income which are dealt with separately in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.
Section 8 TRANSPORT INTERNATIONAL and Inland NAVIGATION § 1. Profits from the operation in international traffic, ships, aircraft or road or rail vehicles shall be taxable only in the Contracting State where the place of effective management of the enterprise is situated.
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2. Profits from the operation of vessels in inland navigation shall be taxable only in the Contracting State where the place of effective management of the enterprise is situated.
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3. For the purposes of this article, profits from the operation of ships or aircraft in international traffic include profits from the rental of ships or aircraft, armed and equipped, and profits from rental bareboat of ships or aircraft operated in international traffic when this rental is incidental to the operation in international traffic of ships or aircraft.
§ 4. If the place of effective management of a maritime or inland navigation company is on board a ship or a boat, this seat is considered to be situated in the Contracting State where the home port of the ship of this boat, or absence of homeport, in the Contracting State of which the operator of the ship or boat is a resident.
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5. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint operation or an international operating agency.
Article 9 associated enterprises where a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other State Contracting, or that b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and that in the other case, two companies are, in their trade relations or financial, by agreed terms or imposed, which differ from those which would be agreed between independent companies, profits which, without these conditions, would have been made by one enterprises but were unable to be actually due to these conditions, may be included in the profits of that enterprise and taxed accordingly.
Article 10 dividends § 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
§ 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed: a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company which holds directly or indirectly at least 25 per cent of the share capital of the company paying the dividends;
b) 15 per cent of the gross amount of the dividends in all other cases.
This paragraph does not affect the taxation of the company in respect of the benefits that are used for the payment of dividends.
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3. The term "dividends" as used in this article means income from shares, shares or dividend certificates, mining, founder shares or other rights, with the exception of claims, as well as income - even attributed in the form of interest - subject to the same regime

tax as income from shares by the taxation law internal State which the debtor company is a resident.
§ 4. The provisions of paragraphs 1 and 2 do not apply if the beneficial owner of the dividends, being a resident of a State Contracting, carries on in the other Contracting State of which the company paying the dividends is a resident, either an industrial or commercial activity through a permanent establishment situated therein, an independent profession through a fixed base which is located , and generating participation of dividends related actually. In this case, the provisions of article 7 or article 14, as the case may be, shall apply.
§ 5. Where a company which is a resident of a Contracting State derives profits or income from the other State Contracting, that other State may levy no tax on dividends paid by the company, except to the extent where such dividends are paid to a resident of that other State or insofar as where the dividends generating participation relates effectively to a permanent establishment or a fixed base situated in that other State , or impose any tax in respect of the taxation of retained earnings, retained earnings of the company, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income from that other State.
Article 11 interest § 1.
Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
§ 2. However, such interest may also be taxed in the Contracting State they come and under the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.
§ 3. Notwithstanding the provisions of paragraph 2, interest shall be exempt from tax in the Contracting State they come when it comes: a) of interest on trade receivables - including those that are represented by effects of trade - as a result of the payment term of supplies of goods, products or services by companies;
(b) interest paid in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by public bodies whose purpose is to promote exports;
(c) of interest current accounts or loans - not represented by securities to bearer - between banks or public institutions of credit of the two Contracting States;
(d) interest paid to the other Contracting State or any of its political subdivisions or local authorities.
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4. The term "interest" as used in this article means income of claims of any nature, secured or not secured by mortgage or a right to participate in the debtor's profits, and including income on public funds and bonds of debentures, including premiums and prizes attaching to such securities. However, this term does not, within the meaning of this section, the penalties for late payment or interest treated as dividends under article 10, paragraph 3.
§ 5. The provisions of paragraphs 1, 2 and 3 do not apply if the beneficial owner of the interest, being a resident of a State Contracting, carries on in the other Contracting State comes the interests, either an industrial activity or business through a permanent establishment situated therein, or independent through a fixed base which is located, and that the generator of the interest receivable related actually. In this case, the provisions of article 7 or article 14, as the case may be, shall apply.
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6. Interests are considered as originating in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State. However, when the debtor of interests, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment or a fixed base, for which the debt giving rise to the payment of interest was incurred and that supports the load of these interests, these are considered as coming from the State where the permanent establishment or fixed base is located.
§ 7. When, due to special relationship between the payer and the beneficial owner or that one and the other person, the amount of the interest, taking into account the debt for which they are paid, exceeds the amount which would be agreed upon the payer and the beneficial owner in the absence of such relationship, the provisions of this article apply only to the latter amount.
In this case, the excess part of the payments is taxable, in accordance with its legislation, in the Contracting State comes interests.
Article 12 royalties § 1. The royalties from a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
§ 2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 5 per cent of the gross amount of the royalties.
§ 3. The term "royalties" as used in this article means payments of any kind paid to use or the concession of the use of a copyright in a literary, artistic or scientific work, including cinematograph films and films or tapes for radio or television, software, patent, of a trade mark or a trade, a drawing or a model a plan, a formula or process secret and information relating to experience gained in the industrial, commercial or scientific field.
§ 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a State Contracting, carries on in the other Contracting State comes royalties, either an activity or business through a permanent establishment situated therein, or independent through a fixed base is situated, and that the right or well Builder royalty related actually. In this case, the provisions of article 7 or article 14, as the case may be, shall apply.
§ 5. Royalties are considered as originating in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State. However, when the debtor's royalties, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment or a fixed base, for which the contract giving rise to the payment of the royalties has been concluded and which supports the load of these charges, they are considered as coming from the State where the permanent establishment or fixed base is located.
§ 6. When, due to special relationship between the payer and the beneficial owner or that one and the other person, the amount of fees, taking into account the provision for which they are paid, exceeds the amount which would be agreed upon the payer and the beneficial owner in the absence of such relationship, the provisions of this article apply only to the latter amount. In this case, the excess part of the payments is taxable, in accordance with its legislation, in the Contracting State comes royalties.
Article 13 CAPITAL GAINS § 1.
Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in article 6 and situated in the other Contracting State, may be taxed in that other State.
§ § 2 2. Gains from the alienation of movable property forming part of the assets of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or movable property which belong to a fixed base available to a resident of a Contracting State in the other Contracting State for the exercise of an independent profession, including such gains from the alienation of this establishment stable (alone or with the whole of the company) or the basic fixed may be taxed in that other State.
§ 3. Gains from the alienation of ships, aircraft or railway vehicles or road operated in international traffic, boats used in inland waterways transport or movable property pertaining to the operation of such ships, aircraft, rail or road or boats, vehicles are taxable only in the Contracting State where the seat of effective management of the enterprise is situated.
§ 4. Gains from the alienation of any property other than those referred to in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the alienator is a resident.
Article 14 independent PROFESSIONS § 1.
Income derived by a resident of a Contracting State of professional services or other activities of an independent character are taxable only in that State unless the resident provides habitually in the other Contracting State of a fixed basis for the exercise of its activities. If he has such a fixed base, the income are taxable in the other State but only insofar as they are attributable to that fixed base.
§ 2. The term "professional services"

includes independent scientific, literary, artistic, educational or teaching activities, as well as the activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15 PROFESSIONS dependent § 1.
Subject to the provisions of articles 16, 18 and 19, salaries, wages and other similar remuneration that a resident of a Contracting State receives in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is exercised, the remuneration received for this may be taxed in that other State.
§ 2.
Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first State if: a) the recipient is present in the other State for a period or periods exceeding in total 183 days during any period of twelve months commencing or ending in the taxable period ((, and b) the remuneration is paid by an employer, or on behalf of an employer who is not a resident of the other State, and c) the remuneration is not borne by a permanent establishment or a fixed base that the employer has in the other State.
§ 3. Notwithstanding the preceding provisions of this article, remuneration received in respect of an employment exercised aboard a ship, an aircraft or railway vehicle or road operated in international traffic, or aboard a boat used for inland navigation, be taxed in the Contracting State where the place of effective management of the enterprise is situated.
Section 16 officers of corporations § 1.
Directors, tokens of presence and other similar payments derived by a resident of a Contracting State in his capacity as member of the Board of directors or a similar organ of a company which is a resident of the other Contracting State may be taxed in that other State.
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2. Pay that a person referred to in paragraph 1 receives from society due to the exercise of one activity daily management or technical character as well as the remuneration derived by a resident of a Contracting State from his personal activity as a partner in a partnership, other that a corporation, which is a resident of the other Contracting State, may be taxed in accordance with the provisions of article 15 paragraph 1.
Article 17 ARTISTES and SPORTSMEN § 1. Notwithstanding the provisions of articles 14 and 15, income derived by a resident of a Contracting State from his personal activities exercised in the other Contracting State as an artist of the show, as an artist of theatre, film, radio or television, or a musician, or as a sportsperson, may be taxed in that other State.
§ 2. When the income from activities exercised by an entertainer or a sportsperson personally and as such are attributed not to the entertainer or athlete himself but to another person, that income are taxable, notwithstanding the provisions of articles 7, 14 and 15, in the Contracting State where the activities of the entertainer or athlete are exercised.
Article 18 PENSIONS § 1. Subject to the provisions of article 19, paragraph 2, pensions and other similar remuneration paid to a resident of a Contracting State in respect of past employment shall be taxable only in that State.
§ 2. However, pensions and other allowances, periodic or not, paid in implementation of the social legislation of a Contracting State or under a general scheme to supplement the benefits provided for by the said legislation by that State may be taxed in that State.
Article 19 public functions § 1. (a) remuneration, other than a pension, paid by a Contracting State or of its political subdivisions or local authority to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) has the nationality of that State, or (ii) did not become a resident of that State solely to provide the services.
§ 2. (a) pensions paid by a Contracting State or any of its political subdivisions or local authorities, either directly or by sampling on funds that they have made, to an individual in respect of services rendered to that State or subdivision or authority, shall be taxable only in that State.
(b) However, such pensions are taxable only in the other Contracting State if the individual is a resident of this State and has the nationality.
§ 3. The provisions of articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or one of its political subdivisions or local authorities.
Article 20 students are as a student or a trainee who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State and who is staying in the first State sole purpose of pursuing his studies or training, receives to cover maintenance costs, for studies or training are not taxable in that State provided that they are derived from sources outside that State.
Article 21 other income, § 1. Items of income of a resident of a Contracting State, wherever they come from, who are treated not in the foregoing 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 from immovable property as defined in article 6, paragraph 2, if the recipient of such income, resident of a State Contracting, carries on in the other Contracting State, or industrial activity or business through a permanent establishment situated therein, or independent with a fixed base that is located , and that the right or the generator of income related actually. In this case, the provisions of article 7 or article 14, as the case may be, shall apply.
CHAPTER IV. -TAXATION of capital Article 22 FORTUNE § 1. Capital represented by real property referred to in article 6, owned by a resident of a Contracting State and which are situated in the other Contracting State, be taxed in that other State.
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2. Capital represented by movable property forming part of the assets of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or by movable property which belong to a fixed base which a resident of a State Contracting has in the other Contracting State for the exercise of an independent profession, may be taxed in that other State.
§ 3.
Incorporated fortune by ship, aircraft or railway vehicles or road operated in international traffic by vessels for inland navigation as well as movable property allocated to the operation of such ships, aircraft, rail or road or boats, vehicles is taxable only in the Contracting State where the seat of effective management of the enterprise is situated.
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4. All other elements of capital of a resident of a Contracting State shall be taxable only in that State.
Chapter V. - provisions aimed at AVOIDING double taxation Article 23 methods to eliminate double taxation § 1. With regard to the Belgium, double taxation shall be avoided as follows: a) where a resident of the Belgium derives income or owns elements of capital which are imposed in Slovakia in accordance with the provisions of this Convention, with the exception of articles 10, paragraph 2, 11, paragraphs 2 and 7, and 12, paragraphs 2 and 6 the Belgium free from tax revenues or those elements of fortune, but it can calculate the amount of its tax on the remaining income or capital of that resident, apply the same rate if revenues or elements of fortune in question had not been exempted.
((b) subject to the provisions of the Belgian law relating to the imputation tax Belgian taxes paid abroad, where a resident of the Belgium derives items of income which are included in its total income subject to Belgian tax and which consist of dividends taxable in accordance with article 10, paragraph 2, and not exempt from Belgian under c taxation) following interest taxable in accordance with article 11, paragraphs 2 to 7, or royalties taxable in accordance with article 12, paragraphs 2 or 6, the Slovak tax levied on such income is charged to Belgian tax relating to such income.
c) dividends within the meaning of article 10, paragraph 3, that a company which is a resident of the Belgium receives from a company which is a resident of the Slovakia are exempt from tax the corporations in Belgium, under the conditions and limits laid down by Belgian legislation.
(d) where, in accordance with Belgian legislation, losses suffered by a business carried on by a resident of the Belgium in a permanent establishment situated in Slovakia were actually deducted from the profits of this company for its imposition

in Belgium, the exemption in the a) does not apply in Belgium to the profits of other taxable periods which are attributable to this establishment, insofar as these benefits were also exempt from tax in Slovakia because of their compensation with such losses.
§ 2. With regard to the Slovakia, double taxation shall be avoided as follows: a) the Slovakia when the imposition of its residents, may include in the tax base upon which the tax is established items of income or capital which, in accordance with the provisions of the Convention, are also taxable in Belgium, but it grants the tax calculated on that basis a deduction of an amount equal to the tax on income or on capital, according to the case, who is paid in Belgium.
However, this deduction cannot exceed that portion of the Slovak tax calculated before deduction corresponding to income or capital which, in accordance with the provisions of the Convention, may be taxed in Belgium.
(b) in relation to dividends paid by a company which is a resident of Belgium to a company which is a resident of the Slovakia and which holds directly or indirectly at least 25 per cent of the capital of the Belgian company, the deduction takes into account, in addition to Belgian tax deductible under the provisions of the a), Belgian tax due by the company because of the benefits for the payment of such dividends.
CHAPTER VI. -Special Article 24 non-discrimination provisions § 1. Nationals of a Contracting State not be subjected in the other Contracting State to any taxation or obligation y, which is other or more heavy than those which are or may be subjected nationals of that other State who are in the same situation, including with regard to the residence. This provision applies also, notwithstanding the provisions of article 1, individuals who are not residents of a Contracting State or the two Contracting States.
§ 2. Stateless persons who are residents of a Contracting State are subject in one or the other Contracting State to any taxation or obligation y relative which is other or more burdensome than those which are or may be subjected the State nationals who are in the same situation.
§ 3. The imposition of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State is not established in that other State to less favourably than the taxation levied on enterprises of that other State carrying on the same activities.
This provision cannot be interpreted as obliging a Contracting State to grant to residents of the other State contracting the personal allowances, reliefs and reductions for tax depending on the situation or family responsibilities which it grants to its own residents.
§ 4.
Unless the provisions of article 9, article 11, paragraph 7, article 12, paragraph 6, shall apply, interest, royalties and other expenses paid by an enterprise of a Contracting State to a resident of the other Contracting State are deductible, for the determination of the taxable profits of the company, under the same conditions as if they had been paid to a resident of the first State. Similarly, the debts of an enterprise of a Contracting State to a resident of the other Contracting State are deductible, for the determination of the fortune of this company, under the same conditions as if they had been contracted to a resident of the first State.
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5. Enterprises of a Contracting State, whose capital is wholly or in part, directly or indirectly owned or controlled by one or more residents of the other Contracting State, are subject in the first State to any taxation or obligation y, which is other or more heavy than those which are or may be subject other similar of the first State businesses.
§ 6. No provision of this article shall be construed as preventing the Belgium: has) to impose the rate provided for by Belgian legislation the benefits of a Belgian permanent establishment of a company which is a resident of the Slovakia, provided that the above rate does not exceed the maximum rate applicable to the profits of companies which are residents of the Belgium;
(b) to levy the withholding tax on dividends relating to participation related indeed to a permanent establishment available in Belgium to a company which is a resident of the Slovakia.
Article 25 mutual agreement PROCEDURE § 1. Where a person considers that the measures taken by a Contracting State or by the two Contracting States result or will result in taxation not in accordance with the provisions of this Convention for it, it may, irrespective of the remedies provided by the domestic law of those States, submit his case to the competent authority of the Contracting State of which it is a resident or, if his case falls under article 24 , paragraph 1, to that of the Contracting State in which it is a national. The case must be submitted within three years following the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.
§ 2. The competent authority shall endeavour, if the query appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to avoidance of taxation not in accordance with the Convention.
§ 3. The competent authorities of the Contracting States shall endeavour by mutual agreement, to resolve any difficulties or doubts arising as to which can lead the interpretation or application of the Convention.
§ 4. The competent authorities of the Contracting States shall consult about the administrative measures necessary for the implementation of the provisions of the Convention and particularly about the justifications to be provided by each Contracting State residents to benefit in the other State's exemptions or tax reductions provided for in this Convention.
§ § 5 5. The competent authorities of the Contracting States communicate directly between them for the purposes of the Convention.
Article 26 exchange of information § 1. The competent authorities of the Contracting States shall exchange the information necessary to apply the provisions of this Convention or of the domestic legislation of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by article 1. Information received by a Contracting State are confidential in the same way that the information obtained in accordance with the internal law of that State and not be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the establishment or collection of the taxes covered by the Convention, procedures or proceedings in respect of those taxes , or by the decisions on appeals related to these taxes. These persons or authorities use this information for these purposes only. They can make this information public hearings State courts or in judgments.
(§ 2 the provisions of paragraph 1 can in no case be interpreted as imposing a State Contracting obligation: has) to take administrative measures derogating from its legislation and its administrative practice or those of the other Contracting State;
(b) to provide information that could be obtained on the basis of its legislation or in the context of its normal administrative practice or those of the other Contracting State;
(c) to provide information that would reveal a commercial, industrial or professional secret or trade process, or information the disclosure of which would be contrary to public order.
Article 27 ASSISTANCE on recovery § 1. Each of the Contracting States shall attempt, on behalf of the other Contracting State, to recover the taxes of that other Contracting State insofar as it is necessary to ensure that the exemptions or tax reductions in this State under this Convention are not granted to persons who are not entitled.
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2. The provisions of this article shall not be interpreted as imposing on the requested State an obligation to apply means of execution that are not permitted by the provisions of laws or regulations of one or the other Contracting State or to take measures which would be contrary to public order.
Article 28 members of MISSIONS diplomatic and consular posts the provisions of this Convention shall not affect the fiscal privileges enjoyed by members of diplomatic missions or consular posts by virtue either of the General rules of the law of Nations, or the provisions of special agreements.
CHAPTER VII. -FINAL provisions Article 29 entry into force § 1.
Each Contracting State shall notify the other Contracting State the completion of the procedures required by its law for the entry into force of this Convention. The Convention enters into force on the fifteenth day following the day of receipt of the latter of these notifications.
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2. The provisions of the Convention shall apply: a) the taxes due at source on assigned revenues or payment from 1 January of the year next following that of the entry into force of the Convention;
(b) to other taxes based on revenues

taxable periods ending from 31 December of the year immediately following that of the entry into force of the Convention;
(c) to taxes on capital established on elements of fortune existing on 1 January of any year subsequent to that of the entry into force of the Convention.
§ 3. The provisions of the Convention between the Kingdom of Belgium and the Czechoslovak Socialist Republic for the avoidance of double taxation and to prevent fiscal evasion with respect to taxes on income and on capital signed at Prague, June 19, 1975, shall cease to apply to any Belgian or Slovak tax for which this Convention has effect in accordance with the provisions of paragraph 2.
Article 30 termination this Convention shall remain in force as long as it has not been denounced by a Contracting State but either of the Contracting States may, until 30 June of any year calendar from the fifth year following that of the entry into force, the denouncing, in writing and through diplomatic channels to the other Contracting State. En_cas_de denunciation before July 1 of such year, the Convention will apply for the last time: a) the taxes due at source on income attributed or put in payment no later than 31 December of the year of the denunciation;
(b) to other taxes based on revenues of taking taxable periods end before December 31 of the year immediately following that of the termination;
(c) to taxes on capital established on elements of fortune existing on 1 January of the year next following that of the termination.
In witness whereof, the undersigned, being duly authorized by their respective Governments, have signed the present Convention.
Done at Brussels, on 15 January 1997, in duplicate, in the languages French, Dutch, English and Slovak. The English text shall prevail in case of conflict of interpretation.
For the Government of the Kingdom of Belgium: E. DERYCKE, Minister for Foreign Affairs for the Government of the Slovak Republic: P. HAMZIK, Minister for Foreign Affairs.

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