Law Approving The Convention Between The Government Of The Kingdom Of Belgium And The Government Of The Ukraine For The Avoidance Of Double Taxation And The Prevention Of Evasion Tax Taxes On Income And On Capital, Signed At Kie

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

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Posted the: 1999-10-19 Numac: 1999015029 Ministry of Foreign Affairs, international trade and international COOPERATION 18 January 1999. -Law concerning consent to the agreement between the Government of the Kingdom of Belgium and the Government of the Ukraine for the avoidance of double taxation and prevent fiscal evasion with respect to taxes on income and on capital, signed in Kiev on 20 May 1996 (1) ALBERT II, King of the Belgians, to all, present and future, hi.
The Chambers have adopted and we endorse the following: Article 1. This Act regulates a manner referred to in article 77 of the Constitution.
S. 2. the Convention between the Government of the Kingdom of Belgium and the Government of the Ukraine for the avoidance of double taxation and to prevent fiscal evasion with respect to taxes on income and on capital, signed in Kiev on 20 May 1996, will release its full and complete effect.
Promulgate this Act, order that it be under the seal of the State and published by le Moniteur.
Given in Brussels, on 18 January 1999.
ALBERT by the King: the Minister of Foreign Affairs, E. DERYCKE. the Minister responsible for foreign trade, E. DI RUPO. the Minister of finance, j.. VIEWFINDER sealed with the seal of the State: the Minister of Justice, T. VAN PARYS _ Note (1) 1997-1998 Session: Senate.
Documents. -Bill filed June 23, 1998, no. 1 - 1037/1.
Session 1998-1999: report, n ° 1-1037/2. -Text adopted at the meeting and forwarded to the House, no 1-1037/3.
Parliamentary Annals. -Discussion. Meeting of November 18, 1998. -Vote. Meeting of November 19, 1998.
Room.
1997-1998 session: Documents.
-Draft transmitted by the Senate, no. 49-1831/1.
Session 1998-1999: Report, no. 49 - 1831/2.

Parliamentary Annals. -Discussion. Meeting of November 24, 1998. -Vote. Meeting of 3 December 1998.

CONVENTION between the Government of Kingdom of Belgium and the Government of the UKRAINE for A avoid the double taxation and A prevent the EVASION tax for taxes on income and the FORTUNE the Government of Kingdom of Belgium and the Government of the Ukraine, desiring to conclude a Convention for the avoidance of double taxation and prevent fiscal evasion with respect to taxes on income and on capital and confirming their intention to develop and deepen their reciprocal economic relations, have agreed upon the following provisions: Article 1 persons this Convention shall apply to persons who are residents of a Contracting State or the two Contracting States.
Article 2 taxes covered 1. This Convention shall apply to taxes on income and on capital imposed on behalf of a Contracting State, its political subdivisions or its local authorities, irrespective of the collection system.
2 are considered as taxes on the income and on capital taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of property movable or immovable property, taxes on the total amount of salaries paid by enterprises , as well as taxes on capital gains.
3. the existing taxes to which the Convention shall apply are in particular: has) with regard to the Ukraine;
(i) the tax on profit of enterprises; and (ii) the tax on the income of the citizens;
(hereinafter referred to as "Ukrainian tax");
(b) in relation to the Belgium: (i) natural persons tax;
(ii) the corporation tax;
(iii) the income tax of legal persons;
(iv) the non-resident tax;
(v) the special assessment on household income;
(vi) the complementary contribution of crisis, including the prepayments, pennies additional said taxes and withholding taxes and additional fees to natural persons tax, (hereinafter referred to as "Belgian tax").
4. the Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention and additional to existing taxes or place. The competent authorities of the Contracting States shall communicate to the significant changes made to their respective taxation laws.
Article 3 General Definitions 1. Within the meaning of this Convention, unless the context otherwise requires: a) "Ukraine", used in a geographical sense, means the territory of the Ukraine, its Continental Shelf and the exclusive economic zone (maritime), including any area beyond the territorial seas of the Ukraine who, in accordance with international law, has been or would be later designated as an area within which can be exercised the rights of the Ukraine relating to the seabed and to subsoil and their natural resources;

(b) the term "Belgium", used in a geographical sense, means the territory of the Kingdom of Belgium, including the territorial sea and maritime zones and the air spaces which, in accordance with international law, the Kingdom of Belgium exercises sovereign rights or jurisdiction;

(c) the term "national" means: (i) any individual possessing the citizenship of the Ukraine or Belgian nationality;
(ii) any legal person, partnership or association established in accordance with the legislation in force in a Contracting State;
(d) the terms "A Contracting State" and "The other Contracting State" mean, as the context requires, the Ukraine or the Belgium;
(e) the term "person" includes natural persons, companies and any other body of persons;
(f) the term "company" means any body corporate or any entity which is treated as a legal person for the purposes of taxation;
(g) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
"(h) the term"international traffic"means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
(i) the term "competent authority" means, in relation to the Ukraine, the Ministry of Finance of the Ukraine or its authorized representative, and regards the Belgium, the Minister of Finance of Belgium or its authorized representative.
2. for the purposes of the Convention by a Contracting State, any term which is not defined have the meaning attributed to it by the law of that State concerning the taxes to which the Convention applies unless the context requires a different interpretation.
Article 4 Resident 1.
Within the meaning of this Convention, the expression "resident of a Contracting State" means any person who, under the legislation of that State, is liable to tax in this State, because of his domicile, residence, of its head of direction, its 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 for income from sources in that State or capital which is located.
2. where, under the provisions of paragraph I of this article, an individual is a resident of both Contracting States, his status is set as follows: a) this person is considered a resident of the Contracting State where it has a permanent home; If it has a permanent home in both Contracting States, it is considered a resident of the Contracting State with which his personal and economic relations are closer (centre of vital interests);
(b) if the Contracting State where that person has his centre of vital interests cannot be determined, or if it has a permanent home in any of the Contracting States, it is considered a resident of the Contracting State where she is staying in usual manner;
(c) whether he has habitual abode in both Contracting States or if it resides habitually in any of them, it is considered a resident of the Contracting State of which it is a national;

(d) if that person is a national of both Contracting States or if it is a national of neither of them, the competent authorities of the Contracting States settle the question by mutual agreement.
3. where, under the provisions of paragraph I of this article, one person other than an individual is a resident of both Contracting States, it is considered to be a resident of the Contracting State in which its place of effective management is situated.
Article 5 establishing stable 1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which a company carries on all or part of its activity.
2. the term "permanent establishment" includes especially: a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) an installation or structure intended for the exploration of natural resources, at least that this exploration is an activity referred to in paragraph 4, e), of this article.

(g) a mine, an oil or gas, a quarry or any other place of extraction of natural resources;
(h) a store or premises used as point of sale.
3. a building site

construction or installation constitutes a permanent establishment only if its duration exceeds twelve months.
4. Notwithstanding the preceding provisions of this article, considering that there is no "permanent establishment" so: has) it is made use of facilities for the sole purpose of storage, exposure or delivery of goods belonging to the enterprise;
(b) goods belonging to the company are stored for the sole purpose of storage, exposure or delivery;
(c) goods belonging to the company are stored for the sole purpose of processing by another enterprise;
(d) a fixed place of business is used solely to purchase merchandise or to gather information, for the enterprise;
(e) a fixed place of business is used for the sole purpose to exercise, for the enterprise, any other activity of a preparatory or auxiliary character;
((f) a fixed place of business is used for the sole purpose of fiscal year cumulative activities mentioned in paragraph a) to (e)), provided that the activity of the fixed place of business resulting from this combination set keeps a preparatory or auxiliary character.
5. Notwithstanding the provisions of paragraphs 1 and 2 of this article, where one person - other than an agent of an independent status to whom paragraph 6 of this article applies - is acting on behalf of an enterprise and has in a Contracting State to powers exercised by it are usually to conclude contracts on behalf of the undertaking or keeps a stock of goods belonging to the enterprise on which goods are regularly taken to be sold in the name of the company, this company is considered as having a permanent establishment in that State for all the activities that this person performs for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 of this article and which, if they were exercised through a fixed place of business, would not consider this facility as a permanent establishment under the provisions of this paragraph.

6. an enterprise shall not be considered as having a permanent establishment in a Contracting State merely because it carries its activity through a broker, general Commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary activity course.
7. the fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other State Contracting or which carries on business (whether through an establishment stable or not) does not, in itself, to make one any of these companies a permanent establishment of the other.
Article 6 property income 1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry holdings) situated in the other Contracting State, may be taxed in that other State.
2. the term "immovable property" shall have the meaning given to it by the law of the Contracting State where the property in question is situated: includes in any case accessories, livestock dead or alive's farms and forestry, rights to which the provisions of private law concerning land ownership, usufruct of real property and rights to variable or fixed payments for the operation or the concession of the exploitation of mineral deposits sources and other natural resources. Ships and aircraft are not considered to be real property.
3. the provisions of paragraph 1 of this article shall apply to income derived from the use or the direct enjoyment of the rental or leasing, as well as any other form of immovable property.
4. the provisions of paragraphs 1 and 3 of this article shall apply also to income from real property of an enterprise and to income from real property used for the pursuit of an independent profession.

Article 7 1 corporate profits. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the company operates in the other State Contracting through a permanent establishment situated therein. If the enterprise carries on business in such a way, the profits of the enterprise are taxable in the other State but only insofar as they are attributable to that permanent establishment.
2. subject to the provisions of paragraph 3 of this article, where an enterprise of a Contracting State carries on business in the other State Contracting through a permanent establishment situated, it is charged, in each Contracting State, to that permanent establishment profits that he could achieve if it had been a separate business operating identical or analogous in identical or similar conditions and dealing independently with the enterprise of which it is a permanent establishment.
3. in determining the profits of a permanent establishment, shall be allowed as deduction the. expenditure incurred for the purposes of the permanent establishment, including Executive and general expenses so incurred administration or in the State where the permanent establishment is situated or elsewhere. However, no deduction is allowed for amounts that would be, if any, paid (at some tracks than the reimbursement of expenses) by the permanent establishment to the company or to any any of its offices, as royalties, fees or other similar payments, for the use of patents or other rights, or as commission, for specific services performed or for management activity or except in the case of a banking business, as interest on moneys lent to the permanent establishment by the enterprise.
4. If it has been customary in a Contracting State to determine, in accordance with its law, the profits attributable to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 of this article prevents that Contracting State from determining the profits to be taxed according to the distribution in use; the adopted allocation method should be such that the result is consistent with the principles contained in this article.

5. no benefit is attributed to a permanent establishment that he simply bought goods for the company.
6. for the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment are determined each year by the same method, unless there is good and sufficient contrary reasons.
7. where profits include items of income which are dealt with separately in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.
Article 8 international Transport 1. Profits derived by a resident of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.
2. for the purposes of this article, profits from the operation of ships or aircraft in international traffic include: a) profits from rental bareboat vessels or aircraft, and b) profits from the use, maintenance or rental of containers (including trailers and equipment y matter intended for the transport of containers) used for the transport of goods;
provided that this rental or such use, maintenance or rental, as the case may be, is incidental compared to the operation of ships or aircraft in international traffic.
3. where a resident of a State Contracting gain benefits within the meaning of paragraph I of this article for the participation in a pool, a joint operation or an international operating agency, the profits attributable to that resident be taxable only in the Contracting State of which he is a resident.
Article 9 associated enterprises 1.
When: a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State;
or b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State;
and that, in either case, the two companies are, in their trade relations or financial, by agreed terms or imposed, which differ from those which would be agreed between independent enterprises, the profits that without these conditions, would have been made by one business but were unable to be actually due to these conditions, can be included by a Contracting State in the profits of that enterprise and taxed accordingly.
2. where a Contracting State includes in the profits of an enterprise of that State - and imposes accordingly - profits on which an enterprise of the other Contracting State has been imposed in that other State and the profits so included are profits which have been made by the company of the first State if the conditions agreed between the two companies had been those which would have been agreed upon

between independent companies, either State proceeded to the adjustment that it considers appropriate. To determine this adjustment, account shall be taken of the other provisions of this Convention and, if necessary, the competent authorities of the Contracting States shall consult each other.
Article 10 dividends 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the laws of that State, but if the beneficial owner is the person who receives the dividends, the tax so charged may not exceed: a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company which holds directly at least 20 per cent of the capital of the company paying the dividends;
b) 15 per cent of the gross amount of the dividends in all other cases.
This paragraph does not affect the taxation of the company in respect of the benefits that are used for the payment of dividends.
3. the term "dividends" as used in this article means income from shares or other rights, with the exception of receivables, as well as income - even attributed in the form of interest or because of other social rights - subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.
4. the provisions of paragraphs 1 and 2 of this article do not apply if the beneficial owner of the dividends, being a resident of a State Contracting, carries on in the other Contracting State of which the company paying the dividends is a resident, either an industrial or commercial activity through a permanent establishment situated therein, an independent profession through a fixed base which is located , and generating participation of dividends related actually. In this case, the provisions of article 7 or article 14 of the Convention, as the case may be, shall apply.
5. where a company which is a resident of a Contracting State derives profits or income from the other State Contracting, that other State may levy no tax on dividends paid by the company, except to the extent where such dividends are paid to a resident of that other State or insofar as where the dividends generating participation relates effectively to a permanent establishment or a fixed base situated in that other State , or impose any tax in respect of the taxation of retained earnings, retained earnings of the company, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income from that other State.

Article 11 interest 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State if the resident is the beneficial owner.
2. However, such interest may also be taxed in the Contracting State they come and under the laws of that State, but if the beneficial owner is the person who receives the interest, the tax so charged may not exceed: a) 2 per cent of the gross amount of interest that are paid: (i) in connection with the sale on credit of industrial equipment commercial or scientific or with the sale or supply to credit of goods or services by an undertaking to another undertaking;
(ii) due to loans of any nature not represented by securities in bearer form and made by a bank or other financial institution;
b) 10 per cent of the gross amount of the interest in all other cases.
3. Notwithstanding the provisions of paragraph 2 of this article, interest arising in a Contracting State are exempt from tax in that State when it comes: a) of interests which the beneficial owner is the other Contracting State itself, a political subdivision or any agency owned or controlled by that Contracting State or this subdivision;
(b) of interest which the beneficiary effective is a resident of the other Contracting State that are paid because of a loan or any other debt or credit made, guaranteed or insured by public entities owned or controlled by that other Contracting State whose purpose is to promote exports, which are nominated and approved by the exchange of letters between the competent authorities of the States Contracting Parties.
4. the term "interest" as used in this article means income of claims of any nature, secured or not secured by mortgage or a right to participate in the debtor's profits, and including income on public funds and bonds of debentures, including premiums and prizes attaching to such securities. However, this term does not, within the meaning of this article, interest treated as dividends under article 10, paragraph 3.
5. the provisions of paragraphs 1 and 2 of this article do not apply if the beneficial owner of the interest, being a resident of a State Contracting, carries on in the other Contracting State comes interests, either an industrial or commercial activity through a permanent establishment that is located or an independent profession through a fixed base that is located , and the generating interest receivable related actually. In this case, the provisions of article 7 or article 14 of the presented agreement, as the case may be, shall apply.
6. the interests are considered as originating in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State. However, when the debtor of interests, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment or a fixed base, for which the debt giving rise to the payment of interest was incurred and that supports the load of these interests, these are considered as coming from the State where the permanent establishment or fixed base is located.
7. when, due to special relationship between the payer and the beneficial owner or that one and the other have with third parties, the amount of interest, taking into account the debt for which they are paid, exceeds the amount which would be agreed upon the payer and the beneficial owner in the absence of such relationship, the provisions of this article apply only to the latter amount. In this case, the excess part of the payments is taxable according to the laws of each Contracting State and in light of the other provisions of this Convention.
Article 12 royalties 1.
The royalties from a Contracting State and paid to a resident of the other Contracting State are taxable in that other State, if the resident is the beneficial owner 2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner is the person who receives the royalties, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties within the meaning of paragraph 4, a), of this article.
(3. Notwithstanding the provisions of paragraph 2 of this article, the royalties from a Contracting State and paid to a resident of the other Contracting State shall be taxable only in the other Contracting State if the resident is the beneficial owner and the royalties constitute earnings within the meaning of paragraph 4, b), of this article.
4. the term "royalties" as used in this article means payments of any kind paid: has) for the right to use, or the use of a copyright in a literary or artistic work, including cinematograph films and films or tapes recorded for radio or television;
and (b)) for use, or the right to use, a copyright on a scientific work, patent, a name or trade mark of a design or model, plan, a formula or process secret and information relating to experience gained in the industrial, commercial or scientific.
5. the provisions of paragraph I of this article shall not apply if the beneficial owner of the royalties, being a resident of a State Contracting, carries on in the other Contracting State comes royalties, either an activity or business through a permanent establishment situated therein, or independent through a fixed base is situated, and that the right or well Builder royalty related actually. In this case, the provisions of article 7 or article 14 of the Convention, as the case may be, shall apply.
6. when, due to special relationship between the payer and the beneficial owner or that one and the other have with third parties, the amount of the royalties, in light of the benefit for which they are paid, exceeds, for any reason whatsoever, that which would be agreed upon the payer and the beneficial owner in the absence of such relationship the provisions of this article shall apply only to the last amount.
In this case, the excess part of the payments is taxable according to the laws of each Contracting State and in light of the other provisions of this Convention.
7. the provisions

of paragraphs 2 and 3 of this article shall not apply when the main purpose or one of the main purposes of any person concerned with the creation or assignment of rights due to which the royalties are paid to take advantage of the provisions of this section through the creation or the assignment.
8. royalties shall be considered as originating in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State. However, when the debtor's royalties, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment or a fixed base, for which the contract giving rise to the payment of the royalties has been concluded and which supports the load of these charges, they are considered as coming from the State where the permanent establishment or fixed base is located.

Article 13 Gains in capital 1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in article 6 of this Convention and located in the other Contracting State, may be taxed in that other State.
((2. gains derived by a resident of a Contracting State from the alienation: a) shares of a company whose assets consist primarily of property immovable property situated in the other Contracting State, or b) an interest in a partnership or a trust whose assets consist principally of immovable property situated in the other Contracting State, are taxable in that other State.
3. gains from the alienation of movable property forming part of the assets of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or movable property which belong to a fixed base available to a resident of a Contracting State in the other Contracting State for the exercise of an independent profession, including such gains from the alienation of this establishment stable (alone or with the whole of the company) or the basic fixed may be taxed in that other State.
4. gains from the alienation of ships or aircraft operated in international traffic by an enterprise of a Contracting State or of movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that Contracting State.
5. gains 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 1' Contracting State of which the alienator is a resident provided that these gains are subject to tax in that Contracting State.
Article 14 independent personal services 1.
Income derived by a resident of a Contracting State of professional services or other activities of an independent character are taxable only in that State unless the resident provides habitually in the other Contracting State of a fixed basis for the exercise of its activities. If he has such a fixed base, the income are taxable in the other State but only insofar as they are attributable to that fixed base.
2. the term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15 dependent personal services 1. Subject to the provisions of articles 16, 18, 19 and 20 of this agreement, salaries, wages and other similar remuneration that a resident of a Contracting State receives in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is exercised, the remuneration received for this may be taxed in that other State.
2. Notwithstanding the provisions of paragraph I of this article, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first State if: a) the recipient is present in the other State for a period or periods exceeding not in total 183 days during any period of twelve months commencing or ending in the fiscal year concerned ((, and b) the remuneration is paid by an employer, or on behalf of an employer who is not a resident of the other State, and c) the remuneration is not borne by a permanent establishment or a fixed base that the employer has in the other State.
3. Notwithstanding the preceding provisions of this article, remuneration received in respect of an employment exercised aboard a ship, a vessel, an aircraft or a road or rail vehicle operated in international traffic may be taxed in the Contracting State of which the company operating the ship, the ship, aircraft or road or rail vehicle is a resident.
Article 16 Directors 1.
Directors, tokens of presence and other similar payments derived by a resident of a Contracting State in his capacity as member of the Board of directors or a similar organ of a company which is a resident of the other Contracting State may be taxed in that other State.
2. remuneration a person referred to in paragraph l of this article receives from society due to the exercise of a daily activity of management or technical character as well as the remuneration derived by a resident of a Contracting State from his personal as a partner in a partnership, other than a corporation, which is a resident of the other Contracting State may be taxed in accordance with the provisions of article 15 of this Convention, as if it were to pay an employee pulls of paid employment, and as if the employer was the company.
Article 17 Artistes and sportspersons 1. Notwithstanding the provisions of articles 14 and 15 of this Convention, income which a resident of a State Contracting draws from his personal activities exercised in the other Contracting State as an artist of the show, as an artist of theatre, film, radio or television, or a musician, or as a sportsperson may be taxed in that other State.
2. where the income from activities exercised by an entertainer or a sportsperson personally and as such are attributed not to the entertainer or athlete himself but to another person, that income are taxable, notwithstanding the provisions of articles 7, 14 and 15 of the Convention, in the Contracting State where the activities of the entertainer or athlete are exercised.
3. Notwithstanding the provisions of paragraphs 1 and 2 of this article, income referred to in this article shall be exempt from tax in the Contracting State where the activities of the artist of the show or athlete are exercised, if these activities are financed in large part through funds of the two States or are exercised within the framework of 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 in respect of past employment, as well as annuities paid to this resident, shall be taxable only in that State.
2. the term "annuity" means a predetermined sum payable periodically at stated times during a natural person, his life during or a period of time fixed or determinable, in fulfilment of a commitment to make the payments in Exchange for a full and adequate consideration in cash or its equivalent.
3. Notwithstanding the provisions of paragraph I of this article, pensions and other similar remuneration and allowances paid pursuant to a Pension Plan of State or social legislation of a Contracting State, its political subdivisions or its local authorities, shall be taxable only in that State.
Article 19 public functions 1. (a) remuneration, other than a pension, paid by a Contracting State or of its political subdivisions or local authority to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.

(b) Notwithstanding the provisions of the a) of this paragraph, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) is a national of that State, or (ii) did not become a resident of that State solely to provide the services.
2. a) pensions paid by a Contracting State or of its political subdivisions or local authorities, either directly or by out of funds that they have established, to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
(b) Notwithstanding the provisions of the a) of this paragraph, these pensions are taxable only in the other Contracting State if the individual is a resident and a national of that State.
3. the provisions of articles 15, 16 and 18 of the present Convention shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or one of its political subdivisions or local authorities.
Article 20 students 1. The sums as a student or trainee who is, or was immediately

before visiting a Contracting State, a resident of the other Contracting State who is present in the first State sole purpose of pursuing his studies or training, receives for expenses maintenance, education or training are not taxable in the first State, provided that they are derived from sources outside that State.
2. the revenues received in respect of activities exercised by it in the ordinary course of his studies or his training in the Contracting State where he stayed sole purpose of pursuing his studies or his training through a student or trainee referred to in paragraph 1 of this article are not taxable in that State during the period of time that is necessary for the completion of his studies or his training. The aforementioned period may in no case exceed 3 years from the date of his arrival in that other State.
Article 21 other income 1.
Items of income of a resident of a Contracting State as they come, which are not covered by the preceding articles of the present Convention and which are imposed in this State shall be taxable only in that State.
2. the provisions of paragraph 1 of this article do not apply to other income that income from immovable property as defined in article 6, paragraph 2, of this Convention, if the recipient of such income, resident of a State Contracting, carries on in the other Contracting State, or an industrial or commercial activity through a permanent establishment that is located , is an independent profession through a fixed base which is located, and that the right or the generator of income related actually.
In this case, the provisions of article 7 or article 14 of the Convention, as the case may be, shall apply.
Article 22 Fortune 1. Capital represented by real property referred to in article 6 of this agreement, owned by a resident of a Contracting State and which are situated in the other Contracting State, be taxed in that other State.
2. capital represented by movable property forming part of the assets of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or by movable property which belong to a fixed base which a resident of a State Contracting has in the other Contracting State for the exercise of an independent profession, may be taxed in that other State.
3. capital represented by ships or aircraft operated in international traffic by an enterprise of a Contracting State, and by movable property allocated to the operation of such ships or aircraft, is taxable only in that Contracting State.
4. all other elements of capital of a resident of a Contracting State shall be taxable only in that State.
Article 23 Elimination of double taxation 1. With regard to the Ukraine, double taxation shall be avoided as follows: a) subject to the provisions of Ukrainian legislation regarding the elimination of tax paid in a territory outside the Ukraine (which affect not the principle of this provision), the Belgian tax paid under the Belgian legislation and in accordance with the provisions of this Convention , either directly or by way of deduction, on profits or income on taxable capital located in Belgium or Belgian sources, shall be charged against the Ukrainian calculated due to the same profits, income or wealth tax. So the amount cannot exceed the Belgian tax because profits, income or taxable capital under the Ukrainian legislation.
(b) in one or the other case, these deductions may not exceed the portion of the tax on income or wealth tax, calculated before deduction, which corresponds, as the case may be, income or fortune taxable in Ukraine.
(c) when, pursuant to a provision any of the Convention, income derived by a resident of the Ukraine or the fortune he owns are exempt from taxation in Ukraine, the Ukraine may nevertheless, in calculating the amount of tax on the remaining income or capital of that resident, take into account income or capital exempted.

(d) for the purposes of this paragraph, profits, income and capital of a resident of the Ukraine gains which may be taxed in Belgium in accordance with the provisions of this Convention are considered as coming from Belgian sources.
(2. as regards the Belgium, double taxation shall be avoided as follows: a) where a resident of the Belgium derives income or owns elements of capital which are imposed in Ukraine in accordance with the provisions of this Convention, with the exception of articles 10, paragraph 2, 11, paragraphs 2 and 7, and 12, paragraphs 2 and 6 the Belgium free from tax revenues or those elements of fortune, but it can calculate the amount of its tax on the remaining income or capital of that resident, apply the same rate if revenues or elements of fortune in question had not been exempted.
((b) subject to the provisions of the Belgian law relating to the imputation tax Belgian taxes paid abroad, where a resident of the Belgium derives items of income which are included in its total income subject to Belgian tax and which consist of dividends taxable in accordance with article 10, paragraph 2, and not exempt from Belgian under c taxation) following interest taxable in accordance with article 11, paragraphs 2 to 7, or royalties taxable in accordance with article 12, paragraphs 2 or 6, the Ukrainian tax levied on such income is charged to Belgian tax relating to such income.
(c) dividends within the meaning of article 10, paragraph 3, that a company which is a resident of the Belgium receives from a company which is a resident of the Ukraine, and which are submitted by Ukraine to the regime provided for in article 10, paragraph 2, are exempt from 1'irr.pot of the companies in Belgium, under the conditions and limits laid down by Belgian legislation.
(d) where, in accordance with Belgian legislation, losses suffered by a business carried on by a resident of the Belgium to a stable establishment in Ukraine were actually deducted from the profits of this company for its imposition in Belgium, the exemption in the a) does not apply in Belgium to the profits of other taxable periods that are attributed to this establishment insofar as these benefits were also exempt from taxation in Ukraine because of their compensation with such losses.
Article 24 non-discrimination 1. Nationals of a Contracting State not be subjected in the other Contracting State to any taxation or obligation y, which is other or more heavy than those which are or may be subjected nationals of that other State who are in the same situation, including with regard to the residence. This provision applies also, notwithstanding the provisions of article 1 of the Convention to persons who are not residents of a Contracting State or of the two Contracting States.
2. stateless persons who are residents of a Contracting State are subject in one or the other Contracting State to any taxation or obligation y relative which is other or more burdensome than those which are or may be subjected the State nationals who are in the same situation.
3. the imposition of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State is not established in that other State to less favourably than the taxation levied on enterprises of that other State carrying on the same activities.
4. unless the provisions of article 9, paragraph 1, article 11, paragraph 7 and article 12, paragraphs 6 and 7, are applicable, interest - other than the interests considered as a dividend under article 10, paragraph 3, of this Convention-, fees and other expenses paid by an enterprise of a Contracting State to a resident of the other Contracting State are deductible for the determination of the taxable profits of the undertaking, under the same conditions as if they had been paid to a resident of first State.
Similarly, the debts of an enterprise of a Contracting State to a resident of the other Contracting State are deductible, for the determination of the fortune of this company, under the same conditions as if they had been contracted to a resident of the first State.
5. enterprises of a Contracting State, whose capital is wholly or in part, directly or indirectly owned or controlled by one or more residents of the other Contracting State, are subject in the first State to any taxation or obligation y, which is other or more heavy than those which are or may be subject other similar of the first State businesses.
6. nothing in this article shall be construed as obliging a Contracting State to grant to individuals who are not residents of this state the personal allowances, reliefs and reductions for tax which are granted to persons physical resident of that State according to their situation or their family responsibilities.
7. nothing in this article shall be construed as preventing a Contracting State from taxing the profits of a permanent establishment situated in that Contracting State of a company which is one resident of the other at the rate provided for by its legislation

Contracting State, provided that the above rate does not exceed the maximum rate applicable to the profits of companies which are residents of the first Contracting State.
8. the provisions of this article apply notwithstanding the provisions of article 2 of this Convention, to the taxes of any nature or description.
Article 25 mutual agreement Procedure 1. Where a person considers that the measures taken by a Contracting State or by the two Contracting States result or will result in taxation not in accordance with the provisions of this Convention for it, it may, irrespective of the remedies provided by the domestic law of those States, submit his case to the competent authority of the Contracting State of which it is a resident or, if his case falls under article 24 , paragraph 1, to that of the Contracting State of which it is a national. The case must be submitted within three years following the first notification of the action resulting in taxation not consumes the provisions of the Convention.
2. the competent authority shall endeavour, if the query appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to avoidance of taxation not in accordance with the Convention. The agreement is 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 any difficulties or doubts arising as to which can lead the interpretation or application of the Convention.
4. the competent authorities of the Contracting States shall consult about the practical measures necessary for the implementation of the provisions of the Convention and particularly about the justifications to be provided by each Contracting State residents to benefit in the other State's exemptions or tax reductions provided for in this Convention.

5. the competent authorities of the Contracting States may communicate directly with each other to achieve an agreement within the meaning of the previous paragraphs.
Article 26 exchange of information 1.
The competent authorities of the Contracting States shall exchange the information necessary to apply the provisions of this Convention or of the domestic legislation of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention, in particular in order to prevent fraud and to facilitate the implementation of legal provisions aimed at combating tax evasion. The exchange of information is not restricted by article 1. Information received by a Contracting State are confidential in the same way that the information obtained in accordance with the internal law of that State and not be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the establishment or collection of the taxes covered by the Convention, procedures or proceedings in respect of those taxes , or by the decisions on appeals related to these taxes. These persons or authorities use this information for these purposes only. They can make this information public hearings State courts or in judgments.
The competent authorities shall endeavour, through consultation, to develop the conditions, methods and appropriate techniques on cases that can be the subject of such an exchange of information, including, if necessary, the exchange of information on cases of tax evasion.
2. the provisions of paragraph 1 of this article may not be interpreted as imposing on the competent authority of one or other of the Contracting States the obligation: has) to take administrative measures derogating from the legislation and administrative practice prevailing in either of the Contracting States;
(b) to provide information that could be obtained on the basis of legislation or under the normal administrative practice of either of the Contracting States;
(c) to provide information that would reveal a commercial, industrial or professional secret or trade process, or information the disclosure of which would be contrary to public order.

Article 27 members of diplomatic or permanent missions and consular posts the provisions of this Convention do not affect the tax privileges granted to members of diplomatic missions or permanent or consulates by virtue either of the law of the General rules, to the provisions of special agreements.
Article 28 entry into force 1. Each of the Contracting States shall notify each other, through diplomatic channels, the completion of the procedures required by its law internal to the entry into force of this Convention.
This Convention shall enter into force on the date of receipt of the latter of these notifications and shall apply accordingly: a) in Ukraine: (i) to taxes due at source on amounts paid from the sixtieth day following the date of entry into force of the Convention;
(ii) to other taxes based on revenues or profits for any taxation period beginning on or after 1 January in the calendar year next following that of the entry into force of the Convention;
(iii) in the taxes on capital established on elements of fortune existing from January 1 of the calendar year next following that of the entry into force of the Convention;
(b) in Belgium: (i) to taxes due at source on income allocated or paid from 1 January of the year next following that of the entry into force of the Convention;
(ii) to other taxes on income of taxable periods beginning on or after 1 January in the calendar year immediately following the year of the entry into force of the Convention;
(iii) in the taxes on capital established on elements of fortune existing from January 1 of the calendar year next 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 Soviet to avoid double taxation of income and capital, signed in Brussels, on December 17, 1987, shall cease to apply to any Ukrainian or Belgian tax for which this Convention has effect, in accordance with the provisions of paragraph 1 of this article.
Article 29 termination this Convention shall remain in force as long as it has not been denounced by one of the Contracting States. Each of the Contracting States may denounce the Convention through diplomatic channels, at least six months before the end of any calendar year beginning after the expiration of a period of five years from the date of the entry into force of the Convention.
In such a case, the Convention shall cease to apply: has) in Ukraine: (i) to taxes due at source on amounts paid from the sixtieth day following the date of termination;
(ii) to other taxes based on revenues or profits for any taxation period beginning on or after 1 January in the calendar year immediately following that of the termination;
(iii) in the taxes on capital established on elements of fortune existing from January 1 of the calendar year immediately following that of the termination;
(b) in Belgium: (i) to taxes due at source on income allocated or paid from 1 January of the year next following that of the termination;
(ii) to other taxes on income of taxable periods beginning on or after 1 January in the calendar year immediately following the year of the denunciation;
(iii) in the taxes on capital established on elements of fortune existing from January 1 of the calendar year immediately following that of the termination.
In witness whereof, the undersigned, being duly authorized, have signed this Convention.
Done at Kiev, May 20, 1996, in duplicate, in Dutch, English, French and Ukrainian, languages all texts being equally authentic. The English text shall prevail in the event of divergence between the texts.
Protocol at the time of signing of the Convention between the Ukraine and the Belgium for the avoidance of double taxation and to prevent fiscal evasion with respect to taxes on income and on capital, the undersigned have agreed to the following provisions which are an integral part of the Convention.
1. Ad article 23, paragraph 2, c).
Notwithstanding the requirement of tax liability provided for by Belgian legislation, dividends received by a company which is a resident of the Belgium from a company which is a resident of the Ukraine and who are paid with profits that are temporarily exempt, in Ukraine, of the tax on profit of enterprises under the Decree of Cabinet of Ministers of the Ukraine entitled "the regime of foreign investment" ("On foreign investment regime") , are exempt from the corporate income tax in Belgium for a maximum of two consecutive taxable periods, the first starting in the first calendar year immediately following the year of the entry into force of the Convention.
The preceding paragraph does not apply when the aim main, or one of the main purposes of any person concerned with the creation or assignment of the right because of which

dividends are paid to take advantage of these provisions or to evade tax on income through the creation or the assignment.
2. assistance in recovery.
If, after the signature of this Convention, the Ukraine signed an agreement which provides assistance to recovery with a third State, the following provisions shall apply from the date on which the agreement between the Ukraine and this third State will be in effect: a) the Contracting States undertake to lend each other support and assistance for the purpose to notify and to recover the taxes referred to in article 2 as well as all additional increases, interest, costs and fines without criminal character.
(b) upon request of the competent authority of a Contracting State, the competent authority of the other Contracting State provides, following the legal and regulatory provisions applicable to notification and recovery such latter State taxes, notification and recovery of tax claims referred to in paragraph a), which are due in the first State. These claims do not enjoy no privilege in the requested State and it is not bound to apply means of implementation that are not allowed by legal or regulations of the requesting State.
c) the requests referred to in paragraph (b)) are supported by an official copy of the enforceable, accompanied, is it necessary, of an official copy of the administrative decisions or court in res judicata.
(d) in relation to tax claims which are subject to appeal, the competent authority of a Contracting State may, for the safeguarding of his rights, apply to the competent authority of the other Contracting State to take the precautionary measures provided for by the legislation (the provisions of paragraphs a) to (c)) are applicable, adapting them, if necessary, to these measures.
e) the provisions of article 26, paragraph 1, shall also apply to any door information, in pursuance of this section, to the knowledge of the competent authority of a Contracting State.
In faith whereof, the undersigned duly authorized thereto, have signed this Protocol.
Done at Kiev, May 20, 1996, in duplicate, in Dutch, English, French and Ukrainian, languages all texts being equally authentic. The English text shall prevail in the event of divergence between the texts.

In accordance with the provisions of article 28 thereof, this Convention has entered into force on 25 February 1999.

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