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18 JANVIER 1999. - An Act to assent to the Convention between the Government of the Kingdom of Belgium and the Government of Ukraine to avoid double taxation and to prevent tax evasion in respect of income and capital taxes, signed in Kiev on 20 May 1996 (1)

ALBERT II, King of the Belgians,
To all, present and to come, Hi.
The Chambers adopted and We sanction the following:
Article 1^er. This Act regulates a manner referred to in Article 77 of the Constitution.
Art. 2. The Convention between the Government of the Kingdom of Belgium and the Government of Ukraine to avoid double taxation and to prevent tax evasion in respect of income and property taxes, signed in Kiev on 20 May 1996, will come out its full and full effect.
Promulgate this Act, order that it be put on the State Seal and published by the Belgian Monitor.
Given in Brussels on 18 January 1999.
ALBERT
By the King:
Minister of Foreign Affairs,
E. DERYCKE
Minister for Foreign Trade,
E. DI RUPO
Minister of Finance,
J.-J. VISEUR
Seal of the State Seal:
Minister of Justice,
T. VAN PARYS
____
Note
(1) Session 1997-1998:
Senate.
Documents. - Bill tabled on 23 June 1998, No. 1-1037/1.
Session 1998-1999:
Report, no. 1-1037/2. - Text adopted in session and transmitted to the Chamber, no. 1-1037/3.
Annales parliamentarians. - Discussion. Meeting of 18 November 1998. - Vote. Meeting of 19 November 1998.
Room.
Session 1997-1998:
Documents. - Project transmitted by the Senate, No. 49-1831/1.
Session 1998-1999:
Report, No. 49-1831/2.
Annales parliamentarians. - Discussion. Meeting of 24 November 1998. - Vote. Session of 3 December 1998.

CONVENTION AGAINST THE GOVERNMENT OF THE BELGIUM ROYAL AND THE GOVERNMENT OF UKRAINE AGAINST IMPOSITION DOUBLES AND FIRST THE FISCALE EVASION D'IMPOTS SUR LE REVENU ET SUR LA FORTUNE
The Government of the Kingdom of Belgium
and
the Government of Ukraine,
Desirous of concluding a Convention to avoid double taxation and to prevent tax evasion in respect of income and wealth taxes and confirming their intention to develop and deepen their mutual economic relations,
The following provisions were agreed:
Article 1^er
Target persons
This Convention applies to persons who are residents of a Contracting State or both Contracting States.
Article 2
Taxes targeted
1. This Convention applies to 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, on total income, on total value of property, or on elements of income or property, including taxes on gains from the alienation of household or real estate property, taxes on the total amount of wages paid by companies, as well as taxes on surplus-values, are considered as tax on income and property.
3. Current taxes to which the Convention applies include:
(a) with respect to Ukraine;
(i) the corporate profit tax; and
(ii) citizens' income tax;
(hereinafter referred to as "Ukraine tax");
(b) with regard to Belgium:
(i) the tax of natural persons;
(ii) corporate tax;
(iii) corporation tax;
(iv) non-resident tax;
(v) the special household income contribution;
(vi) the complementary contribution of crisis,
including pre-payments, additional cents to such taxes and pre-payments, and additional taxes to the tax of natural persons,
(hereinafter referred to as "Belgian tax").
4. The Convention also applies to taxes of an identical or similar nature that would be established after the date of signature of the Convention and that would be in addition to or replace existing taxes. The competent authorities of the Contracting States shall communicate the significant changes to their respective tax laws.
Article 3
General definitions
1. For the purposes of this Convention, unless the context requires a different interpretation:
(a) the term "Ukraine", used in a geographical sense, means the territory of Ukraine, its Continental Shelf and its exclusive (maritime) economic zone, including any area beyond the territorial sea of Ukraine that, in accordance with international law, has been or would be subsequently designated as an area within which the rights of Ukraine relating to the seabed and its basement and their natural resources may be exercised;
(b) the term "Belgium", used in a geographical sense, means the territory of the Kingdom of Belgium, including the territorial sea and the maritime areas and the airspaces on which, in accordance with international law, the Kingdom of Belgium exercises sovereign rights or jurisdiction;
(c) The term "national" means:
(i) any natural person with citizenship of Ukraine or Belgian nationality;
(ii) any legal person, partnership or association incorporated in accordance with the legislation in force in a Contracting State;
(d) the terms "a Contracting State" and "the other Contracting State" mean, according to the context, Ukraine or Belgium;
(e) the term "person" includes individuals, societies and all other groups of persons;
(f) the term "society" means any corporation or entity that is considered to be a corporation for taxation purposes;
(g) 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;
(h) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except where the ship or aircraft is operated only between points in the other Contracting State;
(i) the term "competent authority" means, with respect to Ukraine, the Ministry of Finance of Ukraine or its authorized representative and, with respect to Belgium, the Minister of Finance of Belgium or its authorized representative.
2. For the purposes of the Convention by a Contracting State, any expression not defined therein shall have the meaning assigned to it by the law of that State concerning the taxes to which the Convention applies, unless the context requires a different interpretation.
Article 4
Resident
1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the law of that State, is subject to tax in that State, because of his domicile, residence, management seat, place of registration 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 situated therein.
2. Where, according to the provisions of paragraph I of this article, 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 Contracting State where the person has a permanent home; if it has a permanent home in both Contracting States, it is considered to be a resident of the Contracting State with which its personal and economic ties are the narrowest (centre of vital interests);
(b) if the Contracting State in which that person has the centre of its vital interests cannot be determined, or if it does not have a permanent home in any of the Contracting States, it shall be deemed to be a resident of the Contracting State in which it normally resides;
(c) if the person normally resides in the two Contracting States or if he or she does not normally reside in any of them, he or she is considered to be a resident of the Contracting State of which he or she is a national;
(d) if that person is a national of the two Contracting States or is not a national of any of them, the competent authorities of the Contracting States shall decide the matter by mutual agreement.
3. Where, according to the provisions of paragraph I of this article, a person other than a natural person is a resident of the two Contracting States, the person shall be deemed to be a resident of the Contracting State in which the person ' s effective management seat is situated.
Article 5
Stable establishment
1. For the purposes of this Convention, the term "stable establishment" means a fixed business facility through which a company operates all or part of its business.
2. The term "stable establishment" includes:
(a) a steering seat;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a facility or structure intended for the exploration of natural resources, unless such exploration is an activity referred to in paragraph 4, (e), of this article;
(g) a mine, oil or gas well, a quarry or any other place of extraction of natural resources;
(h) a store or premises used as a point of sale.
3. A construction or construction site is a permanent establishment only if its duration exceeds twelve months.
4. Notwithstanding the preceding provisions of this article, it is considered that there is no "stable establishment" if:
(a) the use of facilities for the sole purpose of storage, exposure or delivery of goods owned by the company;
(b) goods belonging to the undertaking are stored for storage, exposure or delivery purposes only;
(c) goods belonging to the enterprise are stored for the sole purpose of processing by another company;
(d) a fixed business facility is used for the sole purpose of purchasing goods or collecting information for the company;
(e) a fixed business facility is used for the sole purpose of carrying out any other preparatory or auxiliary activity for the enterprise;
(f) a fixed business facility shall be used only for the purpose of the cumulative year of activities referred to in subparagraphs (a) to (e), provided that the overall activity of the fixed business facility resulting from this accumulated business shall be preparatory or auxiliary.
5. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, where a person - other than an agent enjoying an independent status to which paragraph 6 of this Article applies - shall act on behalf of a business and shall, in a Contracting State, have powers to do so that he or she may enter into contracts on behalf of the enterprise or retain a stock of goods belonging to the enterprise on which the goods are regularly sold
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.
Article 6
Real estate income
1. The income that a resident of a Contracting State derives from real property (including income from farms or forestry) located in the other Contracting State, is taxable in that other State.
2. The term "real property" has the meaning assigned to it by the law of the Contracting State in which the property considered 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 and aircraft are not considered real property.
3. The provisions of paragraph 1 of this section apply to income derived from direct exploitation or enjoyment, lease or charter, as well as any other form of exploitation of real property.
4. The provisions of paragraphs 1 and 3 of this section also apply to income derived from the real property of a business as well as to income from the real property used in the exercise of an independent profession.
Article 7
Business benefits
1. The profits of an enterprise of a Contracting State shall be taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located therein. If the company operates in such a way, the profits of the company are taxable in the other State but only to the extent that they are attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3 of this Article, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment located therein, it shall be charged, in each Contracting State, to that permanent establishment the profits that it could have realized if it had constituted a separate undertaking carrying out identical or similar activities under identical or similar conditions and dealing independently with the enterprise of which it constitutes a permanent establishment.
3. To determine the profits of a permanent establishment, are allowed in deduction. expenses exposed for the purposes of this permanent establishment, including executive expenses and general administrative expenses as set out, either in the State where the permanent establishment is located or elsewhere. However, no deduction is allowed for amounts that would, if any, be paid (other than the reimbursement of costs incurred) by the permanent establishment to the enterprise or any of its offices, such as royalties, fees or other similar payments, for the use of patents or other fees, or as a commission, for specific services rendered or for a permanent establishment, or, unless
4. If it is customary in a Contracting State to determine, in accordance with its legislation, 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 of this Article shall prevent that Contracting State from determining the taxable profits according to the distribution in use; However, the method of distribution adopted must be such that the result obtained is consistent with the principles contained in this article.
5. No profit is charged to a permanent establishment because it simply purchased goods for the company.
6. For the purposes of the preceding paragraphs, the benefits to be charged to the permanent establishment are determined annually on the same basis, unless there are valid and sufficient grounds to proceed otherwise.
7. Where profits include income elements treated separately in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.
Article 8
International transport
1. The profits derived by a resident of a Contracting State from the operation, in international traffic, of ships or aircraft shall be taxable only in that State.
2. For the purposes of this section, benefits derived from the operation, in international traffic, of ships or aircraft include:
(a) profits from the bare hull rental of ships or aircraft, and
(b) profits from the use, maintenance or lease of containers (including trailers and related equipment for the carriage of containers) used for the carriage of goods;
provided that such lease, or use, maintenance or lease, as the case may be, is incidental to the operation, in international traffic, of ships or aircraft.
3. Where a resident of a Contracting State derives profits within the meaning of paragraph I of this Article from participation in a pool, joint exploitation or an international operating organization, the profits attributable to that resident shall be taxable only in the Contracting State of which he is a resident.
Article 9
Associated companies
1. When:
(a) a business of a Contracting State directly or indirectly participates in the direction, control or capital of a business of the other Contracting State;
or
(b) the same persons directly or indirectly participate in the direction, control or capital of a business of a Contracting State and a business of the other Contracting State;
and that, in both cases, both companies are, in their commercial or financial relations, bound by agreed or imposed conditions, which differ from those that would be agreed between independent companies, the profits that, without these conditions, would have been realized by one of the companies but could not be in fact because of these conditions, may be included by a Contracting State in the profits of that undertaking and imposed accordingly.
2. When a Contracting State includes in the profits of a company of that State - and therefore imposes - profits on which a company of the other Contracting State has been imposed in that other State, and that the profits thus included are profits that would have been realized by the enterprise of the first State if the terms agreed between the two enterprises had been those that would have been agreed between independent enterprises, the other State shall make the adjustment it considers appropriate. 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 person receiving the dividends is the beneficial owner, the tax so charged shall not exceed:
(a) 5 per cent of the gross amount of dividends if the beneficial owner is a corporation that holds at least 20 per cent of the capital of the corporation that pays the dividends;
(b) 15 per cent of the gross amount of dividends in all other cases.
This subsection does not affect the corporation's taxation of profits that are used to pay dividends.
3. The term "dividends" used in this article refers to income from shares or other beneficial shares with the exception of receivables, as well as income - even attributed in the form of interest or due to other social rights - subject to the same tax regime as income from shares by the law of the State whose distribution society is a resident.
4. The provisions of paragraphs 1 and 2 of this Article 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 income-generating interest in the dividends is effectively connected to it. In this case, the provisions of Article 7 or Article 14 of this Convention, as appropriate, shall apply.
5. Where a corporation that is a resident of a Contracting State derives from the profits or income of the other Contracting State, that other State may not collect any tax on the dividends paid by the corporation, except to the extent that such dividends are paid to a resident of that other State or to the extent that the dividend-generating interest is effectively connected to a permanent establishment or to a fixed base located in that other State, or prelever any
Article 11
Interest
1. Interest arising from a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State if that resident is the beneficial owner of the other Contracting 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 person receiving the interest is the beneficial owner, the tax so charged shall not exceed:
(a) 2 per cent of the gross amount of interest paid:
(i) in relation to the sale of industrial, commercial or scientific equipment or to the sale or supply to credit of goods or services by a company to another enterprise;
(ii) due to loans of any kind not represented by bearer securities and made by a bank or other financial institution;
(b) 10 per cent of the gross amount of interest in all other cases.
3. Notwithstanding the provisions of paragraph 2 of this Article, interest arising from a Contracting State shall be exempted from tax in that State when it is:
(a) interest to which the beneficial owner is the other Contracting State itself, one of its political subdivisions or any body held or controlled by that Contracting State or subdivision;
(b) of interest to which the beneficial owner is a resident of the other Contracting State and which is paid to him by virtue of a loan or other receivable or credit granted, guaranteed or insured by public bodies held or controlled by that other Contracting State whose purpose is to promote exports and which are designated and approved by exchange of letters between the competent authorities of the Contracting States.
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, interest treated as dividends under section 10, paragraph 3.
5. The provisions of paragraphs 1 and 2 of this Article shall not apply where the beneficial owner of the interests, a resident of a Contracting State, carries on in the other Contracting State in which the interests 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 interest-generating debt is effectively connected with it. In this case, the provisions of Article 7 or Article 14 of the present Convention, as appropriate, 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 such cases, the surplus portion of the payments shall be taxable in accordance with the laws of each Contracting State and taking into account the other provisions of this Convention.
Article 12
Claims
1. Royalties from a Contracting State and paid to a resident of the other Contracting State shall be taxable in that other State, if that resident is the beneficial owner of the other Contracting State
2. However, such royalties are also taxable in the Contracting State in which they arise and in accordance with the law of that State, but if the person receiving the royalties is the beneficial owner, the tax so charged shall not exceed 10 per cent of the gross amount of royalties within the meaning of paragraph 4, (a), of this article.
3. Notwithstanding the provisions of paragraph 2 of this Article, royalties arising from a Contracting State and paid to a resident of the other Contracting State shall be taxable only in the other Contracting State if that resident is the beneficial owner of the property and if the royalties constitute remuneration within the meaning of paragraph 4, (b), of this Article.
4. The term "debtedness" used in this section refers to remuneration of any kind paid:
(a) for the use, or concession of use, of a copyright on a literary or artistic work, including film films and films or tapes registered for radio or television; and
(b) for the use, or concession of the use, of a copyright on a scientific work, a patent, a trademark or trade mark, a drawing or a model, a plan, a formula or a secret process and for information relating to an experience gained in the industrial, commercial or scientific field.
5. The provisions of paragraph I of this Article 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 of this Convention, as appropriate, shall apply.
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, for any reason, the amount agreed upon by the debtor and the beneficial owner in the absence of such relations, the provisions of this Article shall apply only to the latter amount. In such cases, the surplus portion of the payments shall be taxable in accordance with the laws of each Contracting State and taking into account the other provisions of this Convention.
7. The provisions of paragraphs 2 and 3 of this article shall not apply where the principal purpose or any of the principal purposes of any person concerned by the creation or assignment of rights by reason of which royalties are paid was to take advantage of the provisions of this section through such creation or assignment.
8. 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.
Article 13
Capital gains
1. The gains derived by a resident of a Contracting State from the alienation of real property referred to in Article 6 of this Convention and situated in the other Contracting State shall be taxable in that other State.
2. The gains derived by a resident of a Contracting State from the alienation:
(a) shares of a corporation whose assets consist primarily of real property located in the other Contracting State, or
(b) an interest in a partnership or trust whose assets consist primarily of real property located in the other Contracting State,
may be taxed in that other State.
3. The gains from the alienation of movable property that are part of the assets of a permanent establishment that a business of a Contracting State has in the other Contracting State, or of movable property that belong to a fixed base of which a resident of a Contracting State disposes in the other Contracting State for the exercise of an independent profession, including such gains from the alienation of that permanent establishment (ully or with
4. 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 Contracting State.
5. Any gains arising from the alienation of any property other than those referred to in paragraphs 1, 2, 3 and 4 of this article shall be taxable only in a Contracting State whose assignor is a resident provided that such gains are subject to tax in that Contracting State.
Article 14
Independent occupations
1. The income derived by a resident of a Contracting State from a liberal profession or other activities of an independent character shall be taxable only in that State, unless that resident has in the other Contracting State a fixed basis for the exercise of his or her activities in an ordinary manner. If it has such a fixed base, income may be taxed in the other State but only to the extent that it is attributable to that fixed base.
2. The term "professional liberal" includes independent scientific, literary, artistic, educational or educational activities, as well as independent activities of doctors, lawyers, engineers, architects, dentists and accountants.
Article 15
Dependent professions
1. Subject to the provisions of Articles 16, 18, 19 and 20 of this Convention, 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 the 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 I of this article, remuneration paid by a resident of a Contracting State in respect of an employee employed in the other Contracting State shall be taxable only in the first State if:
(a) the beneficiary stays in the other State for a period or periods not exceeding a total of 183 days during any period of twelve months beginning or ending in the fiscal year under review, and
(b) compensation shall be paid by an employer or on behalf of an employer who is not a resident of the other State, and
(c) the pay charge is not borne by a permanent establishment or a fixed base that the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article, remuneration for an employee employed on board a ship, vessel, aircraft or road or rail vehicle operated in international traffic shall be taxable in the Contracting State of which the company operating the ship, vessel, aircraft or road or railway vehicle is a resident.
Article 16
Elevenths
1. The fortieth, attendance and other similar remuneration that a resident of a Contracting State receives as a member of the board of directors or of a similar body of a corporation that is a resident of the other Contracting State may be taxed in that other State.
2. The remuneration that a person referred to in paragraph 1 of this Article shall be paid from the corporation by reason of the exercise of a daily activity of direction or technical character, and the remuneration that a resident of a Contracting State derives from his or her personal activity as a partner in a corporation, other than a corporation by shares, which is a resident of the other Contracting State, shall be taxed in accordance with the provisions of Article 15 of this Convention,
Article 17
Artists and athletes
1. Notwithstanding the provisions of Articles 14 and 15 of this Convention, income derived by a resident of a Contracting State from his or her personal activities carried out 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 of this Convention, in the Contracting State where the activities of the artist or athlete are carried out.
3. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, the income referred to in this Article shall be exempted from tax in the Contracting State in which the activities of the performer or athlete are carried out, if these activities are financed largely by public funds of the two States or are carried out under an agreement of cultural cooperation between the Contracting States.
Article 18
Pensions
1. Subject to the provisions of Article 19, paragraph 2, of this Convention, pensions and other similar remuneration, paid to a resident of a Contracting State for an earlier job, as well as annuities paid to that resident, shall be taxable only in that State.
2. The term "rent" means a pre-determined amount, payable periodically at fixed maturity to a natural person, his or her life for or during a specified or determinable period, in accordance with a commitment to make payments in exchange for a full and adequate counter-value in money or its equivalent.
3. Notwithstanding the provisions of paragraph I of this article, pensions and other similar remuneration and allowances, paid in accordance with a State Pension Plan or the social legislation of a Contracting State, its political subdivisions or local authorities, shall be taxable only in that State.
Article 19
Public functions
1. (a) Compensation, other than pensions, paid by a Contracting State or any of its political subdivisions or local authorities to a natural person, for services rendered to that State or subdivision or community, shall be taxable only in that State.
(b) Notwithstanding the provisions of (a) of this paragraph, 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:
(i) is a national of that State, or
(ii) did not become a resident of that State for the sole purpose of rendering the services.
2. (a) Pensions paid by a Contracting State or any of its political subdivisions or local authorities, either directly or by debiting from funds that they have constituted, to a natural person, for services rendered to that State or to that subdivision or community, shall be taxable only in that State.
(b) Notwithstanding the provisions of (a) of this paragraph, such pensions shall be taxable only in the other Contracting State if the natural person is a resident and a national of that State.
3. The provisions of Articles 15, 16 and 18 of this Convention shall apply to remuneration and pensions paid for services rendered in an industrial or commercial activity carried out by a Contracting State or any of its political subdivisions or local authorities.
Rule 20
Students
1. 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 maintenance, education or training expenses shall not be taxable in the first State, provided that they arise from sources outside that State.
2. The income that a student or trainee referred to in paragraph 1 of this Article shall receive in respect of the activities that he or she carries out in the ordinary course of his or her studies or training in the Contracting State where he or she shall stay for the sole purpose of pursuing his or her studies or training shall not be taxable in that State during the period of time that is necessary for the completion of his or her studies or training. The period referred to above shall not exceed 3 years from the date of its arrival in that other State.
Article 21
Other income
1. The income elements of a resident of a Contracting State, wherever they arise, which are not dealt with in the preceding articles of this Convention and which are imposed in that State shall be taxable only in that State.
2. The provisions of paragraph 1 of this Article shall not apply to income other than income derived from real property as defined in Article 6, paragraph 2, of this Convention, where the beneficiary of such income, 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 or In this case, the provisions of Article 7 or Article 14 of this Convention, as appropriate, shall apply.
Article 22
Fortune
1. The property constituted by real property referred to in Article 6 of this Convention, owned by a resident of a Contracting State and situated in the other Contracting State, shall be 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 or aircraft operated in international traffic by an enterprise of a Contracting State, as well as by movable property assigned to the operation of such ships or aircraft, shall be taxable only in that Contracting State.
4. All other assets of a resident of a Contracting State shall be taxable only in that State.
Article 23
Elimination of double taxation
1. With respect to Ukraine, double taxation is avoided as follows:
(a) Subject to the provisions of Ukrainian legislation concerning the elimination of taxes paid in a territory outside Ukraine (which do not affect the general principle of this provision), the Belgian tax paid under Belgian law and in accordance with the provisions of this Convention, either directly or by way of deduction, on the profits or income of Belgian sources or on the taxable fortune located in Belgium, is charged to the Ukrainian tax calculated on the basis of income or The amount thus charged shall not exceed the Belgian tax calculated on the basis of profits, income or taxable capital under Ukrainian law.
(b) In either case, these deductions may not exceed the portion of income tax or capital tax calculated before deduction, which, as the case may be, corresponds to taxable income or fortune in Ukraine.
(c) Where, in accordance with any provision of the Convention, the income that a resident of Ukraine receives or the fortune that he owns is exempted from tax in Ukraine, Ukraine may, however, in calculating the amount of tax on the remainder of the income or fortune of that resident, take into account the exempt income or fortune.
(d) For the purposes of this paragraph, the profits, income and capital gains of a resident of Ukraine who are taxable in Belgium in accordance with the provisions of this Convention shall be considered from Belgian sources.
2. With regard to Belgium, double taxation is avoided as follows:
(a) When a Belgian resident receives income or owns assets that are taxed in Ukraine in accordance with the provisions of this Convention, with the exception of those of articles 10, paragraph 2, 11, paragraphs 2 and 7, and 12, paragraphs 2 and 6, Belgium exempts from tax these incomes or assets, but it may, to calculate the amount of its taxes on the rest of the income or fortune of that resident, apply the same rate if
(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 within the meaning of Article 10, paragraph 3, that a corporation that is a resident of Belgium receives from a company that is a resident of Ukraine, and that are subject to the regime provided for in Article 10, paragraph 2, in Ukraine are exempted from 1'irr.pôt des sociétés en Belgique, 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 Ukraine were effectively deducted from the profits of that undertaking for its taxation in Belgium, the exemption provided for in (a) does not apply in Belgium to the profits of other taxable periods attributable to that establishment, to the extent that such profits were also exempted from tax in Ukraine due to their compensation with
Article 24
Non-discrimination
1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or obligation relating thereto, which is other or heavier than those to which nationals of that other Contracting State are or may be subject to the same situation, particularly in respect of the residence. This provision also applies, notwithstanding the provisions of Article 1 of this Convention, to persons who are not residents of a Contracting State or both Contracting States.
2. Stateless persons who are residents of a Contracting State shall not be subject in either Contracting State to any taxation or relative obligation that is other or heavier than those to which nationals of the State concerned are or may be subject in the same situation.
3. The imposition of a permanent establishment that a business of a Contracting State has in the other Contracting State is not established in that other State in a less favourable manner than the taxation of the enterprises of that other State that exercise the same activity.
4. Unless the provisions of Article 9, paragraph 1, of Article 11, paragraph 7 or of Article 12, paragraphs 6 and 7, are applicable, the interests - other than the interests considered as dividends under Article 10, paragraph 3, of this Convention -, 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, Similarly, the debts of an enterprise of a Contracting State to a resident of the other Contracting State shall be deductible, for the determination of the taxable fortune of that undertaking, on the same basis as if they had been contracted to a resident of the first Contracting State.
5. The undertakings of a Contracting State, whose capital is wholly or partly, directly or indirectly, held or controlled by one or more residents of the other Contracting State, shall not be subject in the first State to any taxation or obligation relating thereto, which is other or heavier than those to which the other similar enterprises of the first State are or may be subject.
6. Nothing in this article shall be construed as requiring a Contracting State to grant to natural persons who are not residents of that State personal deductions, deductions and tax reductions that are granted to the resident natural persons of that State on the basis of their situation or family expenses.
7. Nothing in this Article shall be construed as preventing a Contracting State from imposing at the rate provided for in its legislation the profits of a permanent establishment located in that Contracting State of a company that is a resident of the other Contracting State, provided that the above-mentioned rate does not exceed the maximum rate applicable to the profits of the companies that are residents of the first Contracting State.
8. The provisions of this Article shall apply notwithstanding the provisions of Article 2 of this Convention, to taxes of any kind or denomination.
Rule 25
Friendly procedure
1. Where a person considers that the measures taken by a Contracting State or by the two Contracting States shall result in or result in taxation not in accordance with the provisions of this Convention, the person may, independently of the remedies provided by the domestic law of those States, submit his case to the competent authority of the Contracting State of which he is a resident or, if his case falls under Article 24, paragraph 1, to that of the Contracting State of which he is a national. The case shall be submitted within three years after the first notification of the measure that results in non-consumption taxation under 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. The agreement shall be applied irrespective of the time limits provided by the domestic law of the Contracting States.
3. The competent authorities of the Contracting States shall endeavour, by mutual agreement, to resolve the difficulties or to dispel the doubts to which the interpretation or application of the Convention may take place.
4. The competent authorities of the Contracting States shall agree on the practical 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 to benefit in the other State from the exemptions or tax reductions provided for in this Convention.
5. The competent authorities of the Contracting States may communicate directly with each other in order to reach agreement within the meaning of the preceding paragraphs.
Rule 26
Exchange of information
1. The competent authorities of the Contracting States shall exchange the information necessary to implement the provisions of this Convention or those of the domestic legislation of the Contracting States relating to the taxes covered by the Convention to the extent that the taxation it provides is not contrary to the Convention, in particular in order to avoid fraud and to facilitate the enforcement of the legal provisions to combat tax evasion. The exchange of information is not restricted by section 1^er. The information received by a Contracting State shall be kept secret in the same manner as the information obtained under the domestic legislation of that State and shall only be communicated to the persons or authorities (including the courts and administrative bodies) concerned by the establishment or collection of the taxes referred to in the Convention, by the procedures or prosecutions relating to such taxes, or by the decisions on remedies relating to such taxes. These individuals or authorities only use this information for these purposes. They may report this information at public court hearings or in judgments.
The competent authorities shall seek, through consultation, to develop appropriate conditions, methods and techniques for cases that may be the subject of such an exchange of information, including, where necessary, the exchange of information concerning cases of tax evasion.
2. The provisions of paragraph 1 of this article shall in no case be construed as imposing on the competent authority of either of the Contracting States the obligation:
(a) take administrative measures derogating from the legislation and administrative practice prevailing in either of the Contracting States;
(b) provide information that could not be obtained on the basis of legislation or within the normal administrative practice of either Contracting State;
(c) provide information that would reveal a commercial, industrial, professional or commercial secret or information that would be contrary to public order.
Rule 27
Members of diplomatic or permanent missions and consular posts
The provisions of this Convention shall not affect the tax privileges granted to members of diplomatic or permanent missions or consular posts under either the general rules of human rights or the provisions of special agreements.
Rule 28
Entry into force
1. Each Contracting State shall notify the other, through diplomatic channels, of the fulfilment of the procedures required by its domestic legislation for the entry into force of this Convention. This Convention shall enter into force on the date of receipt of the second notification and shall therefore apply:
(a) Ukraine:
(i) at source taxes on amounts paid from the sixtieth day after the date of entry into force of the Convention;
(ii) other taxes on income or profits for any taxation period beginning on or after 1^er January of the calendar year immediately following that of the entry into force of the Convention;
(iii) the tax on fortune established on assets existing from 1^er January of the calendar year immediately following that of the entry into force of the Convention;
(b) Belgium:
(i) taxes due to the source on the income awarded or paid from 1^er January of the year immediately following that of the entry into force of the Convention;
(ii) other taxes on taxable periods beginning on or after 1^er January of the calendar year immediately following the year of entry into force of the Convention;
(iii) the tax on fortune established on assets existing from 1^er January of the calendar year immediately following that of the entry into force of the Convention.
2. The provisions of the Convention between the Government of the Kingdom of Belgium and the Government of the Union of Soviet Socialist Republics to avoid double taxation of income and fortune, signed in Brussels on 17 December 1987, will cease to apply to any Ukrainian or Belgian tax in respect of which this Convention has effect, in accordance with the provisions of paragraph 1 of this article.
Rule 29
Denunciation
This Convention shall remain in force until it has been denounced by one of the Contracting States. Each Contracting State may denounce the Convention by diplomatic means, at least six months before the end of any calendar year beginning after the expiry of a five-year period from the date of the entry into force of the Convention.
In such cases, the Convention shall cease to apply:
(a) Ukraine:
(i) at source taxes on amounts paid from the sixtieth day after the date of the denunciation;
(ii) other taxes on income or profits for any taxation period beginning on or after 1^er January of the calendar year immediately following the denunciation;
(iii) the tax on fortune established on assets existing from 1^er January of the calendar year immediately following the denunciation;
(b) Belgium:
(i) taxes due to the source on the income awarded or paid from 1^er January of the year immediately following the denunciation;
(ii) other taxes on taxable periods beginning on or after 1^er January of the calendar year immediately following the year of denunciation;
(iii) the tax on fortune established on assets existing from 1^er January of the calendar year immediately following the denunciation.
In faith, the undersigned, to this duly authorized, have signed this Convention.
Done in Kiev on 20 May 1996, in duplicate, in French, Dutch, English and Ukrainian languages, all texts being equally authentic. The English language text will prevail in the event of a discrepancy between the texts.
Protocol
At the time of the signing of the Convention between Ukraine and Belgium to avoid double taxation and to prevent tax evasion in respect of income and capital taxes, the undersigned have agreed on the following provisions which are an integral part of the Convention.
1. Ad article 23, paragraph 2, (c).
Notwithstanding the condition of taxation under Belgian law, the dividends that a corporation that is a resident of Belgium receives from a corporation that is a resident of Ukraine and that are paid by means of profits that are temporarily exempted, in Ukraine, from the tax on the profit of the enterprises under the Decree of the Cabinet of Ministers of Ukraine entitled "From the regime of the foreign investment regime" that begin
The preceding paragraph does not apply where the principal purpose, or one of the principal purposes, of any person concerned with the creation or assignment of the right because the dividends are paid was to take advantage of these provisions or to tax income through that creation or assignment.
2. Recovery assistance.
If, after the signing of this Convention, Ukraine signs with a third State an Agreement that provides for recovery assistance, the following provisions will apply from the date on which the Agreement between Ukraine and that third State will be in force:
(a) The Contracting States undertake to lend each other assistance and assistance in order to notify and recover the taxes referred to in Article 2 as well as any additional increments, interests, fees and fines without a criminal character.
(b) Upon request by the competent authority of a Contracting State, the competent authority of the other Contracting State shall, in accordance with the legal and regulatory provisions applicable to the notification and recovery of the said taxes of that Contracting State, notify and recover the tax claims referred to in paragraph (a), which are payable in the first State. These claims do not enjoy any privilege in the requested State and the requested State is not required to apply enforcement means that are not authorized by the legal or regulatory provisions of the requesting State.
(c) The requests referred to in subparagraph (b) shall be supported by an official copy of the enforceable titles, accompanied, if purchased, by an official copy of the administrative or judicial decisions passed as a result of an order.
(d) With respect to tax claims that are subject to appeal, the competent authority of a Contracting State may, in order to safeguard its rights, request the competent authority of the other Contracting State to take the precautionary measures provided for in the legislation of the other Contracting State; the provisions of subparagraphs (a) to (c) shall apply, adapting them, if necessary, to these measures.
(e) The provisions of Article 26, paragraph 1, shall also apply to any information brought under this Article to the knowledge of the competent authority of a Contracting State.
In faith, duly authorized undersigned to this effect, have signed this Protocol.
Done in Kiev on 20 May 1996, in duplicate, in French, Dutch, English and Ukrainian languages, all 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 25 February 1999.