Advanced Search

Law Approving The Convention Between The Kingdom Of Belgium And The Republic Argentina Aimed To Avoid Double Taxation And Prevent Fiscal Evasion With Respect To Taxes On Income And On Capital, And The Protocol, Made In Brussels

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

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
belgiquelex.be - Carrefour Bank of Legislation

9 JUIN 1999. - An Act to assent to the Convention between the Kingdom of Belgium and the Republic of Argentina to avoid double taxation and to prevent tax evasion in respect of income and property taxes, and the Protocol, made in Brussels on 12 June 1996 (1)



ALBERT II, King of the Belgians,
To all, present and to come, Hi.
The Chambers adopted and We sanction the following:
Article 1er. This Act regulates a matter referred to in Article 77 of the Constitution.
Art. 2. The Convention between the Kingdom of Belgium and the Republic of Argentina to avoid double taxation and to prevent tax evasion in respect of taxes on income and fortune, and the Protocol, made in Brussels on 12 June 1996, will come out their full and full effect.
Promulgate this law, order that it be clothed with the seal of the State and published by the Belgian Monitor.
Given in Brussels, 9 June 1999.
ALBERT
By the King:
Minister of Foreign Affairs,
E. DERYCKE
Deputy Prime Minister and Minister of Economy and Telecommunications, in charge of Foreign Trade,
E. DI RUPO
Minister of Finance,
J.-J. VISEUR
Seal of the state seal:
Minister of Justice,
T. VAN PARYS
______
Note
(1) 1998-1999 sessions.
Senate
Documents. - Bill, tabled on 2 March 1999 1-1295/1. - Report, no. 1-1295/2. - Text adopted by the Commission 1-1295/3.
Annales parliamentarians. - Discussion, meeting of 16 March 1999. - Vote, meeting of 16 March 1999.
Room
Documents. - Project transmitted by the Senate 49-2134/1. - Text adopted in plenary and submitted to Royal Assent 49-2134/2.
Annales parliamentarians. - Discussion, meeting of 2 April 1999. Vote, meeting of 28 April 1999.

Convention between the Kingdom of Belgium and the Republic of Argentina to avoid double taxation and to prevent tax evasion in respect of taxes on income and on fortune
The Government of the Kingdom of Belgium
and
The Government of the Republic of Argentina,
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. - Scope of the convention
Article 1
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 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");
(b) with respect to Argentina:
1st income tax; and
2° personal tax on goods that are not affected to economic activity,
(hereinafter referred to as "Argentina 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 includes the maritime areas on which, in accordance with international law, Belgium exercises sovereign rights or jurisdiction;
2° the term "Argentina", means the Argentine Republic; employed in a geographical sense, it includes the maritime areas on which, in accordance with international law, Argentina exercises sovereign rights or jurisdiction;
(b) the terms "a Contracting State" and "the other Contracting State" mean, in accordance with the context, Belgium or Argentina;
(c) the term "person" includes natural persons, societies and all other groups of persons;
(d) the term "society" 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 a company 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° in respect of Belgium, the Minister of Finance or its authorized representative, and
2° with respect to Argentina, the Ministry of Economy, Works and Public Services, Finance Secretariat.
2. For the application, at any given time, of the Convention by a Contracting State, any expression not defined therein shall have the meaning assigned to it at that time by the right of that State to 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 place of incorporation or any other criterion of a similar nature. 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 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 exploitation of natural resources.
3. The term "stable establishment" also includes:
(a) a construction site, assembly or assembly site or monitoring activities in the construction site, but only when the construction site has or these activities last more than six months;
(b) the provision of services, including consultancy services, by a company acting through employees or other personnel engaged by the company for that purpose, but only when such activities continue (for the same project or related project) in the territory of the country for one or more periods representing a total of more than six months within a period of any twelve months;
(c) a natural resource exploration site, but only when such exploration activities last longer than six 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 or exposure of goods owned by the company;
(b) goods belonging to the enterprise are stored for storage or exposure 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 apply to income derived from direct 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 enterprise are taxable in the other State but only to the extent that they are attributable:
(a) the permanent establishment; or
(b) the sale in that other State of goods of the same nature as those sold by that permanent establishment, or of a similar nature; or
(c) other commercial transactions carried out in that other State and of the same nature as those carried out by that permanent establishment, or similar in nature.
However, the provisions of subparagraphs (b) and (c) apply only if the sales of goods of the same nature or similar nature or the transactions of the same nature or similar nature referred to in these paragraphs relate to the permanent establishment.
2. Subject to the provisions of paragraph 3, where a business of a Contracting State carries on business in the other Contracting State through a permanent establishment located therein, it shall be charged, in each Contracting State, to that permanent establishment the profits that it could have realized if it had constituted a separate undertaking carrying out identical or similar activities under identical or similar conditions and acting independently.
3. In order to determine the 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. Notwithstanding the provisions of paragraph 1, the profits derived by an enterprise of a Contracting State from the insurance or reinsurance of property situated in the other Contracting State or by persons who, at the time of the conclusion of the insurance or reinsurance contract, are residents of that other State, may be taxed in that other State, whether or not the enterprise exercises its activity in that other State through a permanent establishment located therein. However, the tax established in that other State may not exceed 2.5 per cent of the gross amount of the premiums.
6. No profit is charged to a permanent establishment because it simply purchased goods for the company.
7. 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.
8. 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 by an enterprise of a Contracting State from the operation, in international traffic, of ships or aircraft shall be taxable only in that State.
2. In this article:
(a) the term "benefits" includes the interests of funds that relate directly to the international traffic operation of ships or aircraft;
(b) the term "international traffic operation of ships or aircraft" includes the charter or bare hull rental of ships or aircraft and the use or lease of containers and equipment used for the carriage of containers, provided that such chartering, rental or use is incidental to the operation in international traffic of ships or aircraft.
3. The provisions of paragraphs 1 and 2 also apply to benefits derived from participation in a pool, a joint operation or an international operating organization.
Article 9
ENTREPRISES ASSOCIEES
1. When:
(a) a 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 of a business of the other Contracting State, and that, in both cases, the two enterprises are, in their commercial or financial relations, bound by agreed or imposed conditions, that differ from those that would be agreed between independent enterprises, the profits that, without these conditions, could have been realized by
2. When a Contracting State includes in the profits of a company of that State - and therefore imposes on it profits on which a company of the other Contracting State has been imposed in that other State, and that the profits thus included are profits that would have been realized by the enterprise of the first State if the terms agreed between the two enterprises had been those that would have been agreed between independent enterprises, the other State shall make the adjustment that it considers appropriate of the tax To determine this adjustment, the other provisions of this Convention shall be taken into account and, if necessary, the competent authorities of the Contracting States shall consult.
Article 10
DIVIDENDS
1. Dividends paid by a corporation that is a resident of a Contracting State to a resident of the other Contracting State shall be taxable in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the corporation paying the dividends is a resident, and according to the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:
(a) 10 per cent of the gross amount of dividends if the beneficial owner is a corporation that holds directly or indirectly at least 25 per cent of the capital of the corporation that pays the dividends;
(b) 15 per cent of the gross amount of dividends in all other cases.
This subsection does not affect the corporation's taxation of profits that are used to pay dividends.
3. The term "dividends" used in this article refers to income derived from shares, shares or benefits, shares of mine, share of founder or other share of beneficiaries with the exception of receivables, as well as incomes - even attributed in the form of interest - subject to the same tax regime as income of shares under provisions specifically intended to prevent under-capitalization and which are contained in the tax legislation of the State of which the resident corporation.
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 shall 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 Contracting 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 shall not levy any tax
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 12 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 machinery supplies or equipment by a business, except where such interest is paid between associated companies;
(b) interest paid as a result of a loan made, guaranteed or insured, or a credit granted, guaranteed or insured by a financial institution or a public body to promote the export of machinery or equipment;
(c) interest in loans of any kind not represented by holder securities and granted on preferential terms for a period of at least three years by a banking enterprise;
(d) interest paid to the other Contracting State, to any of its political subdivisions or local authorities, or to the Central Bank of that Contracting State, or to an institution held or controlled by that State, or by any of its political subdivisions or local authorities.
4. The term "interest" used in this section refers to the income of receivables of any kind, whether or not accompanied by mortgage guarantees or an interest clause in the debtor's profits, including income from public funds and borrowing obligations, including premiums and lots attached to these securities; However, this term does not include, within the meaning of this section, penalties for late payment or interest treated as dividends under section 10, paragraph 3.
5. The provisions of paragraphs 1, 2 and 3 shall not apply where the beneficial owner of the interest, a resident of a Contracting State, carries on in the other Contracting State in which the interest arises, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the interest-generating debt is effectively linked to it. In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
6. Interest shall be deemed to arise from a Contracting State where the debtor is that State itself, a political subdivision, a local authority or a resident of that State. However, where the debtor of interest, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment, or a fixed base, for which the debt giving rise to the payment of interest has been contracted and which bears the burden of such interests, these shall be deemed to arise from the State where the permanent establishment or fixed base is located.
7. Where, because of special relations between the debtor and the beneficial owner or between the debtor and the other person maintain with third persons, the amount of interest, taking into account the debt for which they are paid, exceeds the amount agreed upon by the debtor and the beneficial owner in the absence of such relations, the provisions of this Article shall apply only to the latter amount. In 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 may be taxed in that other State, if that resident is the beneficial owner of the property.
2. However, such royalties are also taxable in the Contracting State in which they arise and according to the law of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed:
(a) 3 percent of the gross amount of royalties paid for the use or concession of the use of information elements;
(b) 5 per cent of the gross amount of royalties paid for the use, or the concession of the use, of a copyright on a literary, artistic or scientific work (excluding royalties relating to film films and works recorded on films or videotapes or other means of reproduction for television);
(c) 10 percent of the gross amount of royalties paid for the use, or concession of the use, of a computer program, of a patent, of a trademark or trade mark, of a design or of a model, of a plan, of a formula or of a secret process, as well as for the use, or concession of use, of industrial, commercial or scientific equipment, or
(d) 15 percent of the gross amount of royalties paid in other cases.
3. The term "debtedness" used in this article means the remuneration of any kind paid for the use or concession of the use of information of a copyright on a literary, artistic or scientific work, of a computer program, of a patent, of a trademark or trade mark, of a drawing or of a model, of a plan, of a formula or of a
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 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 by an enterprise of a Contracting State or movable property assigned to the operation of such ships or aircraft shall be taxable only in that State.
4. Gains derived from the alienation of any property other than those referred to in paragraphs 1, 2 and 3 shall be taxable in the Contracting State where such property is located.
Article 14
INDEPENDENT PROFESSIONS
1. The income derived by a resident of a Contracting State from a liberal profession or other independent activities shall be taxable only in that State, unless:
(a) that the resident does not have a fixed basis in the other Contracting State for the exercise of his or her activities; or
(b) that it does not carry out these independent activities in the other Contracting State for a period or periods exceeding a total of 90 days in any period of twelve months.
In such cases, income may be taxed in the other State but only to the extent that it is attributable to activities related to that fixed base or carried out during that period or those periods.
2. The term "professional liberal" includes independent scientific, literary, artistic, educational or educational activities, as well as independent activities of doctors, lawyers, engineers, architects, dentists and accountants.
Article 15
PROFESSIONS
1. Subject to the provisions of Articles 16, 18 and 19, wages, salaries and other similar remuneration that a resident of a Contracting State receives under an employee employment shall be taxable only in that State, unless employment is exercised in the other Contracting State. If the employment is exercised, the remuneration received as such is taxable in that other State.
2. Notwithstanding the provisions of paragraph 1, the remuneration of a resident of a Contracting State in respect of an employee employed in the other Contracting State shall be taxable only in the first State if:
a) the beneficiary stays in the other State for a period or periods not exceeding a total of 183 days in any period of twelve months, and
(b) compensation shall be paid by an employer or on behalf of an employer who is not a resident of the other State, and
(c) the pay charge is not borne by a permanent establishment or a fixed base that the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article, remuneration received for an employee employed on board a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that Contracting State.
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.
This provision also applies to remuneration received as a result of the exercise of functions which, under the legislation of the Contracting State whose company is a resident, are treated as functions of a nature similar to those exercised by a person referred to in that provision.
2. The remuneration that a person referred to in paragraph 1 shall receive from the corporation because of the exercise of a day-to-day direction or technical activity and the remuneration that a resident of a Contracting State derives from his or her personal activity as a member 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 in respect of remuneration.
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 of this Article shall not apply if the activities carried out in a Contracting State are financed largely by public funds of the other Contracting State or of any 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
1. Subject to the provisions of Article 19, paragraph 2, pensions and other similar remuneration paid to a resident of a Contracting State for an earlier job shall be taxable only in that State.
2. However, pensions and other allowances, periodic or unpaid, paid in accordance with the social legislation of a Contracting State are taxable in that State. This provision also applies to pensions and allowances paid under a general regime organized by that Contracting State to supplement the benefits provided by that legislation.
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
ETUDIANTS
The sums that a student or trainee who is, or who was immediately before going to a Contracting State, a resident of the other Contracting State and who resides in the first State for the sole purpose of pursuing his or her studies or training, shall be paid to cover his or her costs of maintenance, study or training shall not be taxable in that State for the normal duration of such studies or training, provided that they arise from sources outside.
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 shall be taxable only in that State.
2. The provisions of paragraph 1 shall not apply to income other than income derived from real property as defined in Article 6, paragraph 2, where the beneficiary of such income, a resident of a Contracting State, carries on in the other Contracting State, either an industrial or commercial activity through a permanent establishment located therein, or an independent occupation by means of a fixed base located therein, and that the right or property therein shall, In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
3. Notwithstanding the provisions of paragraphs 1 and 2, the income elements of a resident of a Contracting State that are not dealt with in the preceding articles of this Convention and that come from the other Contracting State shall also be taxable in that other Contracting State.
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 by an enterprise of a Contracting State and by movable property assigned to the operation of such ships or aircraft shall be taxable only in that Contracting State.
4. All other assets are taxable in the Contracting State where these assets are located.
CHAPTER V. - Methods to eliminate double taxation
Article 23
1. With regard to Belgium, double taxation is avoided as follows:
(a) When a Belgian resident receives income or has assets that are taxable in Argentina in accordance with the provisions of this Convention, with the exception of those of arti-cles 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 the fortune of that resident had, apply the income exempted
(b) Subject to the provisions of Belgian law relating to the imputation on Belgian tax of taxes paid abroad, where a Belgian resident receives income elements that are included in his or her total income subject to Belgian tax and that consist of taxable dividends in accordance with Article 10, paragraph 2, and not exempted from Belgian tax under (c) below, in taxable interest in accordance with Article 11, paragraphs 2 or 7,
(c) The dividends that a corporation that is a resident of Belgium receives from a corporation that is a resident of Argentina and that are taxable in Argentina in accordance with Article 10, paragraph 2, 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 Argentina were effectively deducted from the profits of that undertaking for its taxation in Belgium, the exemption provided for in (a) does not apply in Belgium to the profits of other taxable periods that are attributable to that establishment, to the extent that such profits were also exempted from tax in Argentina because of their compensation with
2. With regard to Argentina, double taxation is avoided as follows:
When a resident of Argentina receives income or has property that, in accordance with the provisions of this Convention, is taxable in Belgium, Argentina grants:
(a) on the tax it receives on the income of that resident, a deduction of an amount equal to the income tax paid in Belgium;
(b) on the tax he receives on the fortune of that resident, a deduction of an amount equal to the tax on fortune paid in Belgium.
In both cases, however, this deduction may not exceed the portion of income tax or capital tax, calculated before deduction, corresponding to income or taxable capital in Belgium.
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 State are or may be subject to the same situation. This provision also applies, notwithstanding the provisions of Article 1, to persons who are not residents of a Contracting State or both Contracting States.
2. The term "nationals" means:
(a) all natural persons who have the nationality of a Contracting State;
(b) all legal persons, corporations and associations constituted in accordance with the legislation in force in a Contracting State.
3. 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.
4. 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.
5. Unless the provisions of Article 9, paragraph 1 of Article 11, paragraph 7 or Article 12, paragraph 6, are applicable, the interest, royalties and other expenses paid by a business of a Contracting State to a resident of the other Contracting State shall be deductible, for the determination of the taxable profits of that undertaking, on the same terms 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 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.
6. 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.
7. Nothing in this Convention shall be construed as preventing a Contracting State:
(a) apply the tax rates provided for in its legislation to the profits of a permanent establishment in that State to which a corporation is a resident of the other Contracting State, provided that the total amount of the tax so established does not exceed the income tax applicable to the profits of a corporation that is a resident of the first State more than 10 per cent of the profits after deduction of that income tax;
(b) to withdraw its deduction from the source on the dividends associated with an effective interest in a permanent establishment in that State of which a corporation is a resident of the other Contracting State.
8. 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 implement the provisions of this Convention or those of the domestic legislation of the Contracting States relating to the taxes covered by the Convention to the extent that the taxation it provides is not contrary to the Convention. The exchange of information is not restricted by section 1. The information received by a Contracting State shall be kept secret in the same manner as the information obtained under the domestic legislation of that State and shall only be communicated to the persons or authorities (including the courts and administrative bodies) concerned by the establishment or collection of the taxes referred to in the Convention, by the procedures or prosecutions relating to such taxes, or by the decisions on remedies relating to such taxes. These individuals or authorities only use this information for these purposes. They may report this information at public court hearings or in judgments.
2. In no case shall the provisions of paragraph 1 be construed as imposing on a Contracting State the obligation:
(a) take administrative measures derogating from its legislation, administrative practice or those of the other Contracting State;
(b) provide information that could not be obtained on the basis of its legislation or in the course of its normal administrative practice or those of the other Contracting State;
(c) provide information that would reveal a commercial, industrial, professional or commercial secret or information that would be contrary to public order.
Rule 27
OTHER
1. The provisions of this Convention shall not affect the tax privileges enjoyed by members of diplomatic missions or consular posts under either the general rules of the law of people or the provisions of special agreements.
2. The provisions of the Convention shall not be construed as restricting in any way the exemptions, reductions, deductions, imputations or other benefits that are or will be granted by the law of either of the Contracting States for the determination of the tax due in that State.
CHAPTER VII. - Final provisions
Rule 28
BACKGROUND
1. Each Contracting State shall notify the other Contracting State of the fulfilment of the procedures required by its constitution for the entry into force of this Convention.
2. The Convention shall enter into force on the thirtieth day of receipt of the second of such notifications and its provisions shall apply:
(a) with regard to Belgium:
1° to the taxes due to the source on the income awarded or paid from 1er January of the calendar year following that of the entry into force of the Convention;
2° to the other taxes established on incomes of taxable periods ending on 31 December of the calendar year immediately following that of the entry into force of the Convention and, to the capital taxes established on assets existing on 31 December of any calendar year after that of the entry into force of the Convention;
(b) with respect to Argentina:
1° to taxes due at source on income collected from 1er January of the calendar year immediately following that of the entry into force of the Convention;
2° with respect to other taxes on income, and taxes on fortune, to taxes due for any taxation year beginning on or after 1er January of the calendar year immediately following that of the entry into force of the Convention.
3. The provisions of the agreement between Belgium and Argentina on the reciprocal exemption of income tax in the head of the companies or branches of the shipping companies, concluded by exchange of letters dated 25 July 1949, shall not apply to Belgian or Argentine taxes for which Article 8 of this Convention has effect, in accordance with the provisions of paragraph 2.
Rule 29
DENONCIATION
This Convention shall remain in force until it has been denounced by a Contracting State. However, each Contracting State may, at least six months before the end of any calendar year after the expiration of a period of six years from the year of its entry into force, denounce it, in writing and through diplomatic channels, to the other Contracting State. In this case, the Convention will cease to apply:
(a) with regard to Belgium:
1° to the taxes due to the source on the income awarded or paid from 1er January of the calendar year immediately following the denunciation;
2° to other taxes on taxable periods beginning on or after 1er January of the calendar year immediately following that of the denunciation and, to the tax on the property established on assets existing as of December 31 of the calendar year immediately following that of the denunciation;
(b) with respect to Argentina:
1° to taxes due at source on income collected from 1er January of the calendar year immediately following the denunciation;
2° with respect to other taxes on income, and taxes on fortune, to taxes due for any taxation year beginning on or after 1er January of the calendar year immediately following the denunciation.
In faith, the undersigned, duly authorized by their respective Governments, have signed this Convention.
Done in Brussels on 12 June 1996, in duplicate, in French, Dutch, English and Spanish, the four texts being equally authentic. The English language text will prevail in the event of a discrepancy between these texts.
Protocol
At the time of the signing of the Convention between the Kingdom of Belgium and the Republic of Argentina to avoid double taxation and to prevent tax evasion in respect of taxes on income and on capital (hereinafter referred to as "this Convention"), the undersigned have agreed on the following provisions which form an integral part of the Convention.
1. Ad Article 5, paragraph 2, (f).
It is understood that a fishing place in a Contracting State is covered by that provision.
2. Ad Article 5, paragraph 4 (d), and Article 7, paragraph 6.
It is understood that, notwithstanding these provisions, the export of goods purchased for the company will be subject to the domestic export obligations in force.
3. Ad Articles 7, 10, 11 and 12.
If, by virtue of a preventive agreement of double taxation concluded after the date of signature of this Convention, between Argentina and a third country member of the OECD, Argentina limits its taxation on the basis of the profits derived from the insurance or reinsurance, on the dividends distributed by subsidiaries, on the interest or royalties at a lower rate, including exemption, at the rates provided for in Article 7,
4. Ad Article 8.
If a provincial authority of Argentina or the Federal Capital (Municipality of Buenos Aires) was to waive taxes or taxes on gross revenues derived by a Belgian company from the operation, in international traffic, of ships or aircraft, the Argentine Government would invite that provincial authority or that Federal Capital to grant an exemption from such taxes or taxes to the exemption provided for in the exemption to the article 8
5. Ad Article 12, paragraph 2.
(a) The limitations of taxation at the source provided for in Article 12, paragraph 2 shall be subject to the registration obligations provided for in the domestic legislation of the Contracting State concerned.
(b) To determine the tax due under the provisions of section 12, paragraph 2, (c) on amounts paid for the provision of technical assistance, the expenses directly related to this activity are deducted from the gross amount of royalties. However, the amount of the tax so charged shall not be less than 5 per cent of the gross amount of the royalties.
6. Ad Article 23, paragraph 1 (b).
It is understood that if, after the date of the taking of effect of this Convention, Belgian legislation relating to the granting of the tax credit for royalties from foreign sources collected by residents of Belgium was to be amended, the competent authorities of the two Contracting States would consult to amend this Convention if necessary.
In faith, the undersigned duly authorized to do so by their respective Governments have signed this Protocol.
Done in Brussels on 12 June 1996, in duplicate, in French, Dutch, English and Spanish, the four texts being equally authentic. The English language text will prevail in the event of a discrepancy between the texts.
In accordance with article 28, the Convention entered into force on 22 July 1999.
For the Government of the Kingdom of Belgium:
Ph. PAYSTADT,
Minister of Finance.
For the Government of the Argentine Republic:
G. DI TELLA,
Minister of Foreign Affairs.