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10 AOUT 1998. - An Act to assent to the Convention between the Kingdom of Belgium and the Republic of Mauritius to avoid double taxation and to prevent tax evasion on income tax, signed in Brussels on 4 July 1995

ALBERT II, King of the Belgians,
To all, present and to come, Hi.
The Chambers adopted and We sanction the following:
Article 1^er. This Act regulates a matter referred to in Article 77 of the Constitution.
Art. 2. The Convention signed in Brussels on 4 July 1995 between the Kingdom of Belgium and the Republic of Mauritius to avoid double taxation and to prevent tax evasion on income tax, will come out its full and full effect.
Promulgate this law, order that it be clothed with the seal of the State and published by the Belgian Monitor.
Given at Châteauneuf-de-Grasse on 10 August 1998.
ALBERT
By the King:
Minister of Foreign Affairs,
E. DERYCKE
Minister of Economy, Foreign Trade,
E. DI RUPO
Minister of Finance,
J.-J. VISEUR
Seal of the state seal:
Minister of Justice,
T. VAN PARTS
____
Note
(1) Session 1997-1998.
Senate:
Documents. - Bill tabled on 27 May 1998, No. 1-997/1. - Report, no. 1-997/2. - Text adopted by the Commission, No. 1-997/3.
Annales parliamentarians. - Discussion. Session of 8 July 1998. - Vote. Meeting of 9 July 1998.
Chamber:
Documents. - Project transmitted by the Senate, No. 1652/1. - Text adopted in plenary and subject to Royal Assent, No. 1652/2.
Annales parliamentarians. - Discussion and voting. Meeting of 16 July 1998.

Convention between the Kingdom of Belgium and the Republic of Mauritius to avoid double taxation and to prevent tax evasion on income taxes
The Government of the Kingdom of Belgium
and
The Government of the Republic of Mauritius,
Desiring to conclude a Convention to avoid double taxation and to prevent tax evasion in respect of income taxes, agreed as follows:
CHAPTER I. - Scope of the Convention
Article 1^er
Target persons
This Convention applies to persons who are residents of a Contracting State or both Contracting States.
Article 2
Taxes
1. This Convention applies to income taxes collected on behalf of a Contracting State, its political subdivisions or its local or territorial authorities, irrespective of the system of collection.
2. Income taxes are considered to be taxed on total income or income elements, including taxes on gains from the alienation of movable or real property, taxes on the total amount of wages paid by companies, and taxes on surplus-values.
3. Current taxes to which the Convention applies include:
(a) with regard to Mauritius:
income tax ("income tax"),
(hereinafter referred to as "the Mauritian tax");
(b) with regard to Belgium:
1° the tax of natural persons;
2° corporate tax;
3° the tax of legal persons;
4° the non-resident tax;
5° the special contribution assimilated to the tax of natural persons;
6° the complementary contribution of crisis;
including pre-payments, additional centimes to such taxes and pre-payments, and additional claims 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 any significant changes to their respective tax laws.
CHAPTER II. - Definitions
Article 3
General definitions
1. For the purposes of this Convention, unless the context requires a different interpretation:
(a) the term "Mauritius" means the Republic of Mauritius; employed in a geographical sense, it designates all territories, including all islands which, according to the laws of Mauritius, constitute the Mauritian State and includes the territorial sea of Mauritius, and any area outside the territorial sea of Mauritius which, under international law, has been or may subsequently be defined by the laws of Mauritius, as an area, including the continental shelf, on which the rights of Mauritius in respect of the sea,
(b) the term "Belgium" means the Kingdom of Belgium; employed in a geographical sense, it designates the national territory, the territorial sea and other maritime zones on which, in accordance with international law, Belgium exercises sovereignty rights or jurisdiction;
(c) the terms "a Contracting State" and "the other Contracting State" mean, in accordance with the context, Mauritius or Belgium;
(d) the term "person" includes any physical person, society and other grouping of persons;
(e) the term "society" means any legal person or entity that is considered to be a legal entity for taxation purposes, including a company ("company") or trustee ("trust") within the meaning of Mauritius legislation;
(f) the terms "business of a Contracting State" and "business 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;
(g) the term "international traffic" means any carriage by a ship or aircraft operated by a company whose effective steering seat is located in a Contracting State, except where the vessel or aircraft is operated only between points in the other Contracting State;
(h) the term "competent authority" means:
1° in the case of Mauritius, the Minister of Finance or its authorized representative;
2° in the case of Belgium, the Minister of Finance or its authorized representative;
(i) the term "national of a Contracting State" means:
(1) any natural person who has the nationality of that Contracting State;
2. any legal person, partnership and association constituted in accordance with the legislation in force in that Contracting State.
2. For the purposes of the Convention by a Contracting State, any expression not defined therein shall have the meaning assigned to it by the law of that State concerning the taxes to which the Convention applies, unless the context requires a different interpretation.
Article 4
Resident
1. For the purposes of this Convention, the term "resident of a Contracting State shall mean any person who, under the law of that State, is subject to tax in that State, because of his domicile, residence, management seat or any other similar criterion. However, this expression does not include persons who are subject to impot in that State only for income from sources located in that State.
2. Where, according to the provisions of paragraph 1, a natural person is a resident of the two Contracting States, his or her situation shall be settled as follows:
(a) that person is considered to be a resident of the State where the person has a permanent home; if it has a permanent home in both states, it is considered to be a resident of Itstate with which its personal and economic ties are the narrowest (centre of vital interests);
(b) if the State where 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 States, it is considered to be a resident of the State where it stays of usual tapon;
(c) if the person normally stays in both States or if he or she does not stay in any of them, he or she is considered to be a resident of the State of which he or she is a national;
(d) if that person has the nationality of the two States or has no nationality of any of them, the competent authorities of the contracting States shall decide the question by mutual agreement.
3. Where, according to the provisions of paragraph 1, a person other than a natural person is a resident of the two Contracting States, it is considered to be a resident of the State where its effective management seat is located.
Article 5
Stable 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,
(h) a workshop,
(f) a warehouse, in the case of a person who makes storage facilities available to other persons,
(g) a mine, oil or gas well, a quarry or any other place of extraction of natural resources,
(h) a farm or plantation.
3. A construction or assembly site or monitoring activity in the construction or construction site is a permanent establishment only if its duration exceeds six months.
4. Notwithstanding the preceding provisions of this article, it is considered that there is no "stable establishment" if:
(a) the use of facilities for the sole purpose of storage, exposure or delivery of goods owned by the company;
(b) goods owned by the company 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 business;
(h) 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 for the purposes 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 the cumulative operation shall be preparatory or auxiliary.
5. Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent enjoying an independent status to which paragraph 6 applies - acts in a Contracting State for an enterprise of the other Contracting State, that undertaking shall be deemed to have a permanent establishment in the first Contracting State for all activities that the person carries on for it if that person:
(a) in that State has the power that it normally exercises therein, to enter into contracts on behalf of the undertaking, unless the activities of that person are limited to those mentioned in paragraph 4 and that, exercised in a fixed business facility, would not depart from that fixed business facility a permanent establishment within the meaning of a new paragraph;
(b) having no such power, usually keeps in the first State a stock of goods on which it regularly collects goods for the purpose of delivery on behalf of the company.
6. A business of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State solely because it operates in that other State through a broker, general commissioner or any other agent enjoying an independent status, if such persons act within the ordinary framework of their activity. However, where the activities of such an agent are carried out exclusively or almost exclusively on behalf of that undertaking, the agent is not considered an independent agent within the meaning of this paragraph.
7. The fact that a corporation that is a resident of a Contracting State controls or is controlled by a corporation that is a resident of the other Contracting State or that operates therein (either through a permanent establishment or not) is not sufficient in itself to make any of these companies a permanent establishment of the other.
CHAPTER III. - Income tax
Article 6
Real estate income
1. The income derived by a resident of a Contracting State from real property located in the other Contracting State shall be taxable in that other State.
2. The term "real property" has the meaning assigned to it by the law of the Contracting State in which the property is located. The term includes, in any case, accessories, dead or alive livestock of farms and forests, the rights to which the provisions of private law apply in respect of land ownership, the usufruct of real property and the rights to variable or fixed payments for the exploitation or concession of the exploitation of mineral deposits, sources and other natural resources; ships, ships and aircraft are not considered real property.
3. The provisions of paragraph I shall apply to income derived from direct exploitation or enjoyment, lease or charter, as well as any other form of exploitation of real property.
4. The provisions of paragraphs I and 3 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, where a business of a Contracting State carries on business in the other Contracting State through a permanent establishment located therein, it shall be charged, in each State, to that permanent establishment the profits that it could have realized if it had constituted a separate undertaking carrying out identical or similar activities under identical or similar conditions and acting independently.
3. In order to determine the benefits of a permanent establishment, deductions are allowed for the expenses incurred for the purposes of this permanent establishment, including the executive expenses and general administrative expenses so exposed, either in the State where the permanent establishment is located or elsewhere. Any star, no deduction is allowed for amounts that would, if any, be paid (other than the reimbursement of costs incurred) by the permanent establishment at the central office of the enterprise or at any of its offices, such as royalties, fees or similar payments, for the use of patents or other fees, or as a commission, for specific services rendered or for a management activity or, except Similarly, in the calculation of the profits of a permanent establishment, there shall be no account of the amounts (other than the reimbursement of the Faults) carried by the permanent establishment at the rate of the central office of the enterprise or of any of its other offices, such as royalties, fees or other similar payments, for the use of patents or other fees, or as a board for specific services rendered or for any management activity or
4. If it is customary in a Contracting State to determine the profits attributable to a permanent establishment on the basis of a distribution of the total profits of the enterprise between its various parties, no provision in paragraph 2 shall prevent that Contracting State from determining the taxable profits according to the distribution in use; However, the method of distribution adopted must be such that the result obtained is consistent with the principles contained in this article.
5. No profit is charged to a permanent establishment because it simply purchased goods for the company.
6. For the purposes of the preceding paragraphs, the benefits to be charged to the permanent establishment are determined annually on the same basis, unless there are valid and sufficient grounds to proceed otherwise.
7. Where profits include income elements treated separately in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.
Article 8
Maritime and air navigation
1. The profits derived from the operation, in international traffic, of ships or aircraft shall be taxable only in the Contracting State where the effective management seat of the enterprise is located.
2. For the purposes of this section, benefits derived from the operation, in international traffic, of ships or aircraft include:
(a) the casual profits from the bare hull rental of ships or aircraft operated in international traffic;
(b) profits derived from the use or lease of containers, provided that these benefits are complementary or incidental to the benefits to which the provisions of paragraph I are applicable.
3. If the effective management seat of a marine navigation company is on board a ship, this internship shall be considered to be located in the Contracting State where the vessel's port of attachment is located, or if the vessel is not wearing a home, in the Contracting State of which the vessel operator is a resident.
4. The provisions of paragraph I also apply to benefits derived from participation in a pool, a joint operation or an international operating organization.
Article 9
Associated companies
When:
(a) an enterprise of a Contracting State directly or indirectly participates in the direction, control or capital of a business of the other Contracting State, or
(b) the same persons directly or indirectly participate in the direction, control or capital of a business of a Contracting State and a business of the other Contracting State,
and that, in both cases, both companies are, in their commercial or financial relations, bound by agreed or imposed conditions, that differ from those that would be agreed between independent companies, the profits that, without these conditions, would have been realized by one of the companies but could not be in fact because of these conditions, may be included in the profits of that undertaking and imposed accordingly.
Articie 10
Dividends
1. Dividends paid by a corporation that is a resident of a Contracting State to a resident of the other Contracting State shall be taxable in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the corporation paying the dividends is a resident, and according to the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:
(a) 5 per cent of the gross amount of the dividends if the beneficial owner is a corporation (other than a partnership in the case of Mauritius) that holds directly or indirectly at least 10 per cent of the capital of the corporation that pays the dividends;
(b) 10 per cent of the gross amount of dividends in all other cases.
This subsection does not affect the corporation's taxation of profits that are used to pay dividends.
3. The term "dividends" used in this article refers to income derived from shares, shares or benefits, shares of mine, share of founder or other share of beneficiaries with the exception of receivables, as well as incomes - even attributed in the form of interest - subject to the same tax regime as income from shares by the law of the State whose debiting society is a resident.
4. The provisions of paragraphs 1 and 2 shall not apply, where the beneficial owner of the dividends, a resident of a Contracting State, exercises in the other Contracting State whose dividend-paying corporation is a resident, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the dividend-generating interest is effectively connected to it. In such cases, the provisions of Article 7 or Article 14, as the case may be, 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 shall be taxable in that other State.
2. However, these interests are also taxable in the Contracting State in which they arise and according to the law of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2, interest shall be exempted from tax in the Contracting State from which it arises when it is:
(a) interest in commercial receivables - including those represented by commercial effects - resulting from the payment of goods, products or services by companies in the future;
(b) interest paid as a result of a loan or credit made, guaranteed or insured by public bodies whose purpose is to promote exports;
(c) interest in loans, not represented by holder securities, granted by bank companies;
(d) interest deposits of amounts of money not represented by holder securities and carried out in banking enterprises;
(e) interest paid to the other Contracting State or to any of its political subdivisions or local or territorial authorities.
4. The term "interest" used in this section refers to the income of receivables of any kind, whether or not accompanied by mortgage guarantees or an interest clause in the debtor's profits, including income from public funds and borrowing obligations, including premiums and lots attached to these securities. However, the term "interests" does not, within the meaning of this section, include penalties for late payment or interest treated as dividends under section 10, paragraph 3.
5. The provisions of paragraphs 1, 2 and 3 shall not apply where the beneficial owner of the interest, a resident of a Contracting State, exercises in the other Contracting State in which the interest arises, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the interest-generating debt is effectively connected to it. In such cases, the provisions of Article 7 or Article 14, as the case may be, 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 or territorial authority or a resident of that State. However, where the debtor of interest, whether or not a resident of a Contracting State has in a Contracting State a permanent establishment, or a fixed base, for which the debt giving rise to the payment of interest has been contracted and which bears the burden of such interests, these shall be deemed to arise from the State where the permanent establishment or fixed base is located.
7. Where, because of special relations between the debtor and the beneficial owner or between the debtor and the other person maintain with third persons, the amount of interest, taking into account the debt for which they are paid, exceeds the amount agreed upon by the debtor and the beneficial owner in the absence of such relations, the provisions of this Article shall apply only to the latter amount. In this case, the surplus portion of the payments shall remain taxable, in accordance with its legislation, in the Contracting State from which the interest arises.
Article 12
Claims
1. Royalties from a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State, if that resident is the beneficial owner of the property
2. The term "debtedness" used in this article means the remuneration of any kind paid for the use or concession of the use of a copyright on a literary, artistic or scientific work, including film films and other works registered for broadcasting or television, a patent, a trademark or trade mark, a drawing or a model, a plan, a secret process or a trade record
3. The provisions of paragraph I 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 the right or property that generates royalties is effectively connected to it. In such cases, the provisions of Article 7 or Article 14, as the case may be, shall apply.
4. Royalties shall be deemed to arise from a Contracting State where the debtor is that State itself, a political subdivision, a local or territorial authority or a resident of that State. However, where the debtor of royalties, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment, or a fixed base, for which the contract giving rise to the payment of royalties has been concluded and which bears the charge of such royalties, these shall be deemed to be from the State where the permanent establishment, or the fixed base, is located.
5. Where, because of special relations between the debtor and the beneficial owner or between the debtor and the other person maintain with third persons, the amount of royalties, taking into account the benefit for which they are paid, exceeds the amount agreed upon by the debtor and the beneficial owner in the absence of such relations, the provisions of this section apply only to the latter amount. In this case, the surplus portion of the payments shall remain taxable, in accordance with its legislation, in the Contracting State from which royalties arise.
Article 13
Capital gains
1. The gains derived by a resident of a Contracting State from the alienation of real property referred to in Article 6 and situated in the other Contracting State shall be taxable in that other State.
2. The gains from the alienation of movable property that are part of the assets of a permanent establishment that a business of a Contracting State has in the other Contracting State or of movable property that belong to a fixed base of which a resident of a Contracting State disposes in the other Contracting State for the exercise of an independent profession, including such gains from the alienation of that permanent establishment (ully or with the other Contracting State)
3. Gains derived from the alienation of ships or aircraft operated in international traffic or movable property assigned to the operation of such vessels or aircraft shall be taxable only in the Contracting State where the effective management seat of the enterprise is located.
4. Gains derived from the alienation of any property other than those referred to in paragraphs 1, 2 and 3 shall be taxable only in a Contracting State whose assignor is a resident.
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, 20 and 21, wages, salaries and other similar remuneration that a resident of a Contracting State receives in respect of 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 1, the remuneration of a resident of a Contracting State in respect of an employee employed in the other Contracting State shall be taxable only in the first State if:
(a) the beneficiary stays in the other State for a period or periods not exceeding a total of 183 days during any twelve-month period beginning or ending during the tax period 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 basis that the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article, remuneration received for an employee employed on board a ship or aircraft operated in international traffic shall be taxed in the Contracting State where the effective management seat of the enterprise is located.
Article 16
Corporate leaders
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.
The foregoing provision also applies to remuneration received because of the performance of functions which, under the legislation of the Contracting State whose company is a resident, are treated as functions of a nature similar to those exercised by a person referred to in that provision.
2. The remuneration that a person referred to in paragraph I shall receive from the corporation because of the exercise of a day-to-day direction or technical activity as well as the remuneration that a resident of a Contracting State derives from his or her personal activity as a member in a corporation other than a corporation by shares, which is a resident of the other Contracting State, shall be taxable to an employee in accordance with the provisions of Article 15, as if he or she
Article 17
Artists and athletes
1. Notwithstanding the provisions of Articles 14 and 15, 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 sportsman exercises personally and in this capacity is attributed, not to the artist or to the athlete himself but to another person, such income shall be taxable, notwithstanding the provisions of Articles 7, 14 and 15, in a Contracting State where the activities of the artist or athlete are carried out.
3. The provisions of paragraphs I and 2 of this article shall not apply if the activities carried out by artists or athletes in a Contracting State are financed entirely or for a large part by public funds of the other Contracting State, of one of its political subdivisions or local or territorial authorities.
Article 18
Pensions
1. Subject to the provisions of Article 19, paragraph 2, pensions and other similar remuneration and annuities paid to a resident of a Contracting State shall be taxable only in that State.
2. The term "expenses" used in paragraph 1 refers to periodic payments made for prior employment or compensation for damage incurred in such employment.
3. However, pensions and other periodic or unpaid allowances, paid in accordance with the social legislation of a Contracting State or under a general regime organized by that Contracting State to supplement the benefits provided by that legislation, are taxable in that State.
4. The term "rentes" means a pre-determined amount payable periodically to fixed maturity, life for or during a specified or determinable period, by virtue of a commitment to make payments in exchange for a full and adequate counter-value in money or its equivalent.
Article 19
Public functions
1. (a) Compensation, other than pensions, paid by a Contracting State or any of its political subdivisions or local or territorial authorities, to a natural person, for services rendered to that State or subdivision or community, shall be taxable only in that State.
(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and if the natural person is a resident of that State who:
1° has the nationality of that State, or
2° did not become a resident of that State for the sole purpose of rendering the services.
2. (a) Pensions paid by a Contracting State or any of its political subdivisions or local or territorial authorities, either directly or by debiting from funds that they have constituted, to a natural person, for services rendered to that State or to that subdivision or community, shall be taxable only in that State.
(b) However, such pensions shall be taxable only in the other Contracting State if the pet is a resident of that State and has its nationality.
3. The provisions of Articles 15, 16 and 18 apply to remuneration and pensions paid for services rendered in an industrial or commercial activity carried out by a Contracting State or one of its political subdivisions or local or territorial authorities.
Rule 20
Professors and researchers
1. The remuneration that a teacher or a researcher who is, or who was immediately before going to a Contracting State, a resident of the other Contracting State and who, upon invitation, stays in the first State for the sole purpose of teaching or conducting research therein at a university or another officially recognized institution, receives under these activities, shall not be taxable in the first State for a period of time not exceeding two years from the date of arrival.
2. The provisions of paragraph I do not apply to compensation received for research not in the general interest but mainly in the private interest of one or more specified persons.
Article 21
Students and trainees
A student or trainee who is, or was immediately before going to a Contracting State, a resident of the other Contracting State and who is temporarily residing in the first State for the sole purpose of continuing his or her studies or training, is not taxable in that State:
(a) on amounts received from sources outside the State to cover its maintenance, education or training expenses;
(b) on remuneration, not exceeding 150,000 Belgian francs per calendar year or the equivalent of that amount in Mauritian currency, which it receives in respect of an employee employment exercised in that State in connection with its education or training and during the normal period of such remuneration, that period may not exceed:
1° in the case of a student, seven consecutive years;
2° in the case of a trainee, three consecutive years.
Article 22
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 shall be taxable only in that State.
2. The provisions of paragraph ler shall not apply to income other than income derived from real property as defined in Article 6, paragraph 2, where the beneficiary of such income, a resident of a Contracting State, carries on in the other Contracting State, either an industrial or commercial activity through a permanent establishment situated therein, or an independent occupation by means of a fixed base located therein, and that the right or the right or right of the generator is effectively located therein. In this case, the provisions of Article 7 or Article 14, as applicable, are applicable.
3. Notwithstanding the provisions of paragraphs 1 and 2, the income elements of a resident of a Contracting State that are not dealt with in the preceding articles of this Convention and that come from the other Contracting State shall also be taxable in that other State if such elements are not imposed in the first State.
CHAPTER IV. - Methods to eliminate double taxation
Article 23
1. For Mauritius, double taxation is avoided as follows:
(a) Subject to the provisions of (b) and (c) below and Mauritian legislation relating to imputation on Mauritian tax of taxes paid abroad (in accordance with the general principle of this Convention), where a resident of Mauritius receives profits, income or gains from Belgium and which, in accordance with Belgian law and under the Convention, are taxable in Belgium either directly or by way of deduction
(b) With respect to dividends, the credit provided in (a) takes into account only the dividend tax that is added to the tax due in Belgium by the distribution company on the profits that have been used to pay dividends.
(c) When a corporation that is a resident of Mauritius receives dividends from a corporation that is a resident of Belgium and in which it holds directly or indirectly at least 10 per cent of the capital, the Mauritian tax credit takes into account, in addition to the Belgian tax for which a credit is granted under the provisions of (a) and (b), The Belgian tax due by the company distributor on the dividends that have served the payment.
(d) For the purposes of this paragraph, the profits, income and gains of a resident of Mauritius who are taxable in Belgium under the Convention are considered to be derived from Belgium.
2. With regard to Belgium, double taxation is avoided as follows:
(a) When a Belgian resident receives income that is taxed to Mauritius in accordance with the provisions of the Convention, with the exception of those of articles 10, paragraph 2, 11, paragraphs 2 and 7, and 12, paragraph 5, Belgium exempts from tax these incomes, but it may, in calculating the amount of its taxes on the remaining income of that resident, apply the same rate as if the income in question had not been exempted.
However, this provision does not apply to the benefits that a Belgian resident derives from a permanent establishment in Mauritius, which were imposed on Mauritius but at a rate below 25 per cent. In this case, these profits are taxable in Belgium in accordance with the provisions of Belgian domestic legislation relating to professional income made and imposed abroad.
(b) Subject to the provisions of Belgian law relating to the imputation on Belgian tax of taxes paid abroad, where a Belgian resident receives income elements that are included in his or her total income subject to Belgian tax and that consist of taxable dividends in accordance with Article 10, paragraph 2, and not exempted from Belgian tax under (c) below, in taxable interest in accordance with Article 11, paragraph 2
(c) Where a corporation that is a resident of Belgium has the ownership of shares or shares of a corporation that is a resident of Mauritius, the dividends paid to it by the latter corporation and that are taxable in Mauritius in accordance with Article 10, paragraph 2, are exempted from the tax of the companies in Belgium, under the conditions and limits provided for in Belgian law.
(d) Where, in accordance with Belgian law, losses incurred by a company operated by a resident of Belgium in a permanent establishment located in Mauritius have been effectively deducted from the profits of that undertaking for its taxation in Belgium, the exemption provided for in (a) does not apply in Belgium to the profits of other taxable periods that are attributable to that establishment, to the extent that such profits have also been exempted from tax in Mauritius due to their compensation.
CHAPTER V. - Special provisions
Article 24
Non-discrimination
1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or obligation relating thereto that is other or heavier than those to which nationals of that other State are or may be subject to the same situation, in particular from the point of view of the residence. This provision also applies, notwithstanding the provisions of "Article 1, to persons who are not residents of a Contracting State or both Contracting States.
2. Stateless persons who are residents of a Contracting State shall not be subject in either Contracting State to any taxation or relative obligation that is other or heavier than those to which nationals of the State concerned are or may be subject in the same situation.
3. The imposition of a permanent establishment that a business of a Contracting State has in the other Contracting State is not established in that other State in a less favourable manner than the taxation of the enterprises of that other State that exercise the same activity. This provision shall not be construed as requiring a Contracting State to grant personal deductions, deductions and tax reductions to the residents of the other Contracting State on the basis of the situation or family expenses that it grants to its own residents.
4. Unless the provisions of Article 9, Article 11, paragraph 7 or Article 12, paragraph 5, are applicable, the interests, royalties and other expenses paid by an enterprise of a Contracting State to a resident of the other Contracting State shall be deductible, for the determination of the taxable profits of that undertaking, under the same conditions as if they had been paid to a resident of the first Contracting State.
5. The undertakings of a Contracting State, whose capital is wholly or partly, directly or indirectly, held or controlled by one or more residents of the other Contracting State, shall not be subject in the first State to any taxation or obligation relating thereto, which is other or heavier than those to which the other similar enterprises of the first State are or may be subject.
6. Nothing in this article shall be construed as preventing Belgium:
(a) to impose at the rate prescribed by Belgian legislation the benefits of a permanent Belgian establishment of a company that is a resident of Mauritius, provided that the above-mentioned rate does not exceed the maximum rate applicable to the profits of the companies that are residents of Belgium;
(b) to collect the movable pre-payment on the dividends associated with an effective interest in a stable establishment in Belgium with a corporation that is a resident of Mauritius.
7. The provisions of this section shall apply, notwithstanding the provisions of section 2, 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 or she is a national. The case shall be submitted within three years after the first notification of the measure that results in taxation not in conformity with the provisions of the Convention.
2. The competent authority shall endeavour, if the request seems to it to be founded and if it is not itself able to provide a satisfactory solution to it, to resolve the case by amicable agreement with the competent authority of the other Contracting State with a view to avoiding taxation not in conformity with the Convention.
3. The competent authorities of the Contracting States shall endeavour, by mutual agreement, to resolve the difficulties or to dispel the doubts to which the interpretation or application of the Convention may take place.
4. The competent authorities of the Contracting States shall agree on the administrative measures necessary for the implementation of the provisions of the Convention and in particular on the justifications to be provided by the residents of each Contracting State for the benefit in the other State of the exemptions or tax reductions provided for in this Convention. If oral exchanges seem to have to facilitate an agreement, such exchanges of views may take place within a commission composed of representatives of the competent authorities of the Contracting States.
5. The competent authorities of the Contracting States shall communicate directly with each other for the purposes of the Convention.
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 combat tax evasion. The exchange of information is not restricted by section 1. The information received by a Contracting State shall be kept secret in the same manner as the information obtained under the law of that State, and shall be communicated only to the persons or authorities (including the courts or administrative bodies) concerned by the establishment or collection of the taxes referred to in the Convention, by the procedures or prosecutions relating to such taxes, or by the decisions on remedies relating to such taxes. These individuals or authorities only use this information for these purposes. They may report this information at public court hearings or in judgments.
2 In no case shall the provisions of paragraph I be construed as imposing on a Contracting State the obligation:
(a) take administrative measures derogating from its legislation and administrative practice or those of the other Contracting State;
(b) provide information that could not be obtained on the basis of its legislation or in the course of its normal administrative practice or those of the other Contracting State;
(c) provide information that would reveal a commercial, industrial, professional or commercial secret or information that would be contrary to public order.
Rule 27
Members of diplomatic missions and consular posts
The provisions of this Convention shall not affect the tax privileges enjoyed by members of diplomatic missions or consular posts under either the general rules of the law of people or the provisions of special agreements.
CHAPTER VI. - Final provisions
Rule 28
Entry into force
1. This Convention shall be ratified and the instruments of ratification shall be exchanged in Brussels as soon as possible.
2. The Convention shall enter into force on the date of the exchange of instruments of ratification and its provisions shall apply:
(a) in Mauritius: tax on income for fiscal years beginning after 1 July immediately following the date of entry into force of the Convention;
(b) in Belgium:
1° to the 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;
2° to other taxes established on incomes of taxable periods ending on 31 December of the year immediately following that of the entry into force of the Convention.
Rule 29
Denunciation
This Convention shall remain in force until it has been denounced by a Contracting State. Each Contracting State may denounce the Convention in writing and through diplomatic channels to the other Contracting State, with a minimum notice of six months before the end of each calendar year after the fifth year following the entry into force of the Convention; in this case, the Convention will last apply:
(a) in Mauritius: tax on income of the fiscal year beginning after 1^er July immediately following notification of denunciation,
(b) in Belgium:
1° to the taxes due to the source on the income awarded or paid by December 31 of the year of the denunciation;
2° to other taxes on taxable period income ending before December 31 of the year immediately following that of the denunciation.
The undersigned, duly authorized to do so by their respective Governments, have signed this Convention.
Done in Brussels on 4 July 1995, in duplicate, in the French, Dutch and English languages, the three texts being equally authentic.
The exchange of instruments of ratification took place on 28 January 1999.
In accordance with article XXVIII, paragraph 2, the Convention entered into force on 28 January 1999.
AND INTERNATIONAL COOPERATION