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Law Approving The Convention Between The Kingdom Of Belgium And The Republic Of South Africa For The Avoidance Of Double Taxation And Prevent Fiscal Evasion With Respect To Taxes On Income, Made In Pretoria On 1 February 1995 (1)

Original Language Title: Loi portant assentiment à la Convention entre le Royaume de Belgique et la République d'Afrique du Sud tendant à éviter la double imposition et à prévenir l'évasion fiscale en matière d'impôts sur le revenu, faite à Pretoria le 1er février 1995 (1)

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belgiquelex.be - Carrefour Bank of Legislation

10 AOUT 1998. - An Act to assent to the Convention between the Kingdom of Belgium and the Republic of South Africa to avoid double taxation and to prevent tax evasion on income tax, done in Pretoria on 1er February 1995 (1)



ALBERT II, King of the Belgians,
To all, present and to come, Hi.
The Chambers adopted and We sanction the following:
Article 1er. This Act regulates a matter referred to in Article 77 of the Constitution.
Art. 2. The Convention between the Kingdom of Belgium and the Republic of South Africa to avoid double taxation and to prevent tax evasion on income tax, made in Pretoria on 1er February 1995, will come out with its 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 PARYS
____
Notes
(1) Session 1997-1998.
Senate.
Documents. - Bill tabled on 27 May 1998., No. 1-998/1. - Report, no. 1-998/2. - Text adopted in session and transmitted to the Chamber, No. 1-998/3.
Annales parliamentarians. - Discussion, meeting of 8 July 1998. Voting, meeting of 9 July 1998.
House of Representatives
Documents. - Project transmitted by the Senate, No. 1653/1.
Annales parliamentaaires. - Discussion, meeting of 16 July 1998. Vote. Meeting of 16 July 1998.

Convention between the Kingdom of Belgium and the Republic of South Africa for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income
The Government of the Kingdom of Belgium and the Government of the Republic of South Africa, desiring tot conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows:
Article 1
Personal scope
This Convention shall apply to persons who are residents of one or both of the Contracting States.
Article 2
Taxes covered
1. This Convention shall apply to taxes on income imposed on behalf of an Contracting State or of its political sub-divisions, irrespective of the manner in which they are levied.
2. There shall be regarded as taxes on income all taxes imposed on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property, as well as taxes on capital appreciation.
3. The existing taxes to which the Convention shall apply are in particular :
a) in the case of Belgium:
(i) the individual income tax;
(ii) the corporate income tax;
(iii) the income tax on legal entities;
(iv) the income tax on non-residents;
(v) the special levy assimilated to the individual income tax;
(vi) the supplementary crisis contribution;
including the prepayments, the surcharges on these taxes and prepayments, and the supplements to the individual income tax;
(hereinafter referred to as "Belgian tax");
(b) in the case of South Africa:
(i) the normal tax;
(ii) the non-resident shareholders' tax;
(iii) the secondary tax on companies;
(hereinafter referred to a “South African tax”)
4. The Convention shall apply also to any identical or substantially similar taxes wich are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant change which has been made in their respective taxation laws.
Article 3
General definitions
1. For the purposes of this Convention, unless the context otherwise requires:
a) (i) the term « Belgium » means the Kingdom of Belgium and, when used in a geographical sense, means the territory of the Kingdom of Belgium, including the territorial sea and any other area in the sea and in the air within which the Kingdom of Belgium, in accordance with international law, exercise sovereign rights or jurisdiction;
(ii) the term "South Africa" means the Republic of South Africa and, when used in a geographical sense, includes the territorial sea thereof as well as any area outside the territorial sea, including the continental shelf, which has been or may hereafter be designated, under the laws of South Africa and in accordance with international law, as an area within which South Africa may exercise sovereign rights or jurisdiction;
b) the terms "a Contracting State" and " the other Contracting State" mean Belgium or South Africa as the context requires;
(c) the term "person" includes an individual, a company and any other body of persons;
d) the term « company » means any body corporate or any entity which is treated as a body corporate for tax purposes;
e) 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;
(f) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place of effective management in a Contracting State, except; when the ship or aircraft is operated solely between places in the other Contracting State;
(g) the term "competent authority" means:
(i) in the case of Belgium, the Director General of direct taxes or his authorised representative, and
(ii) in the case of South Africa, the Commissioner for Inland Revenue or this authorised representative;
h) the term "nationals" means:
(i) all individuals possessing the nationality of a Contracting State;
(ii) all legal persons, partnerships and associations deriving their statutes as such from the laws in force in a Contracting State.
2. As regards the application of the Convention by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to the Convention applies.
Article 4
Resident
1. For the purposes of this Convention, the term "resident of a Contracting State" means:
a) in the case of Belgium, any person who, under the laws of Belgium, is liable to tax is Belgium by reason of domicile, residence, place of management or any other criterion of a similar nature;
b) in the case of South Africa, any individual who is ordinarily resident in South Africa and any other person which has its place of effective management in South Africa.
2. Where by reason of the provisions of paragraph 1 and individual is a resident of both Contracting States, then his status shall be determined as follows:
a) he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (centre of vital interests);
b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode;
(c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national;
d) if he is a national of both States or neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.
3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated.
Article 5
Permanent establishment
1. For the purposes of this convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
2. The term "permanent establishment" includes especially :
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop, and
(f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.
3. A building site, an construction, assembly or installation project or any supervisory activity in connection therewith constitutes a permanent establishment only if it lasts more than twelve months.
4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:
a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display of delivery;
(c) the maintenance of a stock of goods of merchandise belonging to the enterprise solely for the purpose of processing bij another enterprise;
(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;
e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of an preparatory or auxiliary character;
f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
5. Notwithstanding the provisions of paragraph 1 and 2, where a person - other that an agent of an independent status to whom paragraph 6 applies - is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that undertake business establishment that unless the activities of such person are limited to those mentioned in paragraph 4
6. An enterprise shall not be deemed to have a permanent establishment in Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.
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 Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.
Article 6
Income from immovable property
1. Income derived by a resident of a Contracting State form immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in the other State.
2. The term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as condiseration for the working of, or the right to work, mineral deposits, sources and other natural resources. Ships, boats and aircraft shall not be regarded as immovable property.
3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting or use in any other form of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.
Article 7
Business profits
1. The profits of an enterprise of a Contracting shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establihment situated therein. If the enterprise carries on business as aforesaid, the profits of the may be taxed in the other State but only so much of them as is attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently.
3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated of elsewhere.
4. Insofar a it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an appointment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an contributionionment as may be customary. The method of contributionionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article.
5. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
6. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to be contrary.
7. Where profits include items of income which are dealt with separately in other Articles of the Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.
Article 8
Shipping and air transport
1. Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
2. For the purpose of this Article, profits from the operation of ships of aircraft in international traffic shall include:
a) profits derived from the rental on a bare boat basis of ships or aircraft used in international traffic,
b) profits derived from the use or rental of containers,
if such profits are incidental to the profits to which the provisions of paragraph 1 apply.
3. If the place of effectieve management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.
4. The provision of paragraphs 1 and 2 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.
Article 9
Associated enterprises
1. Where:
a) an enterprise of a Contracting State participates directly or indirectely 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 in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have increasedd to one of the enterprises, but, by reason of those conditions, have not so increasedd, may be included 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 taxes accordingly - profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have increasedd to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State may make such an adjustment as it considers appropriate to the amount of the tax charged there In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary 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 of the dividends is a resident of the other Contracting State the tax so charged shall not exceed :
a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company which holds directly or indirectly at least 25 per cent of the capital of the company paying the dividends.
(b) 15 per cent of the gross amount of the dividends in all other cases.
This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
3. The term « dividends » as used in this Article means income from shares, « enjoyment » shares or « enjoyment » rights, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, as well as income - even paid in the form of interest - which is treated as income from shares by the internal tax legislation of the State of which the paying company is a resident.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment of fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
5. Where a company which is a resident of a Contracting State derives profits of income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other company or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the dividend's undistributed
Article 11
Interest
1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of the 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 in which it arises if it is:
(a) interest on commercial debt-claims represented by commercial paper - resulting from deferred payments for goods, goods or services supplied by an enterprise;
b) interest paid in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by a public financial institution or a public entity under a scheme for the promotion of exports;
c) interest on loans of any nature - not represented by bearer instruments - granted by a banking enterprise;
(d) interest on deposits - not represented by bearer instrument - with a banking;
e) interest paid to the other Contracting State.
4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from funds or debentures, including preniums and prizes attaching to such securities, bonds or debentures. However, the term "interest" shall not include for the purpose of this Article penalty charges for late payment nor interest regarded as dividends under paragraph 3 of Article 10.
5. The provisions in paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
6. Interest shall be deemed to arise in a Contracting State when the pay is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base in situated.
7. Where, by reason of a special relationship between the pay and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the pay and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable in the Contracting State in which the interest arises according to the laws of that State.
Article 12
Royalties
1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State if such resident is the beneficial owner of the royalties.
2. The term "royalties" as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and films, tapes or discs for television or radio broadcasting, any software, patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.
3. The provisions of paragraph 1 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
4. Royalties shall be deemed to arise in a Contracting State when the pay is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
5. Where, by reason of a special relationship between the pay and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the pay and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable in the Contracting State in which the royalties arise, according to the laws of that State.
Article 13
Capital gains
1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.
2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment that (alone or with the whole enterprise) or of such fixed base, may be taxed in
3. Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3, shall be taxable only in the Contracting State of which the alienator is a resident.
Article 14
Independent personal services
1. Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributable to that fixed base.
2. The term " professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15
Dependent personal services
1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and similar remuneration derived by a resident of the Contracting State in respect of an employment shall be taxable only in the State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.
2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:
a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve-month period, and
b) the remuneration is paid by, 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 which the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised abroad a ship or aircraft operated in international traffic, may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.
Article 16
Directors' fees
1. Directors' fees and similar payments derived by a resident of a Contracting State in his capacity as a 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. The provisions of paragraph 1 shall apply to payments derived in respect of the discharge of functions which, under the laws of the Contracting State of which the company is resident, are regarded as functions of a similar nature to those exercised by a person referred to therein.
3. Remuneration derived by a person referred to in paragraph 1 from the company in respect of the discharge of day-to-day functions of a managerial or technical nature may be taxed in accordance with the provisions of Article 15, as if such remuneration were remuneration derived by an employee in respect of an employment and as if references to the « employer » were references to the company.
4. The provisions of paragraph 3 shall also apply, in the case of Belgium, the remuneration received by a resident of South Africa in respect of his personal activity as a partner of a company, other than a company with share capital, which is a resident of Belgium.
Article 17
Entertainers and sportsmen
Notwithstanding the provisions of Articles 7, 14 and 15:
a) income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artist, or a musician, or as a sportsman, from his personal activities a such exercised in the other Contracting State, may be taxed in that other State;
b) where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such increased no to the entertainer or sportsman himself but to another person, that income may be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.
Article 18
Pensions
1. Subject to the provisions of paragraph 2 of Article 19, pensions and similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State.
2. However, pensions and other allowances, periodic or non-periodic, paid under the social security legislation of a Contracting State shall be taxable only in that State. This provision also applies to pensions and allowances paid under a public scheme organised by a Contracting State in order to supplement the benefits of that legislation.
Article 19
Government service
1. (a) Remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:
(i) is a national of that State; gold
(ii) did not become a resident of that State solely for the purpose of rendering the services.
2. (a) Any pension paid by, or out of funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.
3. The provisions of Article 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof.
Rule 20
Students and business apprentices
A student or business apprentice who is temporarily present in the Contracting State solely for the purpose of his education or training and who is, or immediately before being so present was, a resident of the other Contracting State, shall be exempt from tax in the first-mentioned State on payments received from outside that first-mentioned State for the purpose of his maintenance, education or training.
Article 21
Other income
A resident of a Contracting State shall be exempt from tax in the other Contracting State in respect of items of income which are not dealt with in the foregoing Articles of this Convention if he is taxable in the first-mentioned State in respect of such items of income.
Article 22
Elimination of double taxation
1. In the case of Belgium :
(a) Where a resident of Belgium derives income which may be taxed in South Africa in accordance with the provisions of this Convention, other than those of paragraph 2 or Article 10, of paragraphs 2 and 7 of Article 11 and of paragraph 5 of Article 12, Belgium shall exempt such income from tax but may, in calculating the amount of tax on the remaining income of that resident, apply the rate of tax which would have been applicable if such income had not been exempted.
(b) Subject to the provisions of Belgian law regarding the deduction from Belgian tax of taxes paid abroad, where a resident of Belgium derives items of his aggregate income for Belgian tax purposes which are dividends taxable in accordance with paragraph 2 of Article 10, and not exempt from Belgian tax according to subparagraph c) hereinafter, interest taxable in accordance with paragraph 2 or 7 of Article 11, or royalties taxable in accordance with 5 paragraph of Article 12, the South African credit that tax levied
(c) Dividends within the meaning of paragraph 3 of Article 10, derived bij a company which is a resident of Belgium, from a company which is a resident of South Africa shall be exempt from the corporate income tax in Belgium under the conditions and within the limits provided for in Belgium law.
(d) Where, in accordance with Belgian law, losses incurred by an enterprise carried on by a resident of Belgium in a permanent establishment situated in South Africa, have been effectively deducted from the profits of that enterprise for its taxation in Belgium, the exemption provided for in subparagraph a) shall not apply in Belgium to the profits of other taxable periods attributable to that establishment to the extent that those profits have not been subjected to tax in South Africa by reason of compensation for the said losses.
2. In the case of South Africa:
(a) Belgian taxes paid by residents of South Africa in respect of income taxable in Belgium, in accordance wit the provisions of the Convention, shall be deducted from the taxes due according to South African fiscal law. Such deduction shall not, however, exceed that part of the South African tax, as computed before the deduction is given, which is attributable to the income which may be taxed in Belgium.
(b) As regards the application of the provisions of subparagraph a), it is understood that the amount of the South African tax which is attributable to such income which has been subjected to tax in Belgium shall be :
(i) where the tax on such income is computed by applying a proportional rate, the amount of the net income concerned multiplied by that rate; and
(ii) where the tax on such income is computed by applying a progressive scale, an amount which bears to the net income concerned the same ratio as the total tax payable bears to the total net income which is subject to tax in accordance with South African fiscal law.
Article 23
Non-discrimination
1. Nationals of the Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States.
2. the taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil statutes or family responsibilities which it grants to its own residents.
3. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 5 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.
4. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.
Nothing contained in this Article shall be construed as preventing Belgium :
a) from taxing the profits attributable to a permanent establishment in Belgium of a company which is a resident of South Africa at the rate of tax provided bij the Belgian law, provided that this rate does not exceed the normal rate applicable to the profits of companies which are residents of Belgium;
b) from imposing the movable property prepayment on dividends derived from a holding which is effectively connected with a permanent establishment maintained in Belgium by a company which is a resident of South Africa.
6. In this Article the term "tax" means taxes which are the subject of this Convention.
Article 24
Mutual agreement procedure
1. Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident, or if his case comes under paragraph 1 of Article 23, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance wit the provisions of the Convention.
2. The competent authority shall endeavour, if the objection 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 the avoidance of taxation which is not in accordance with the Convention.
3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention.
4. The competent authorities of the Contracting States shall agree on administrative measure necessary to carry out the provisions of the Convention and particulary on the proof to be furnished by residents of either Contracting State in order to benefit in the other State from the exemptions or reductions in tax provided for in the Convention.
5. The competent authorities of the Contracting States shall communicate directly with each other for the application of the Convention.
Rule 25
Exchange of information
1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Article 1. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Convention. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.
2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:
a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other contracting State;
b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other contracting State;
c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy.
Rule 26
Air in recovery
1. The Contracting States shall lend aid and assistance to each other in order to notify and recover the taxes referred to in Article 2 as well as additions, interest and administrative penalties with respect to such taxes.
2. At the request of the competent authority of a Contracting State, the competent authority of the other Contracting State shall secure, in accordance with the legal provisions and regulations applicable to the notification and recovery of the said taxes of the other State, the notification and the recovery of tax claims referred to in paragraph 1 which are due in the first-mentioned State and are not subject to bona fide dispute on the date upon which recovery proceedings are taken by the other State. Such claims shall not have any priority in the above-mentioned other State and that State shall not be obliged to apply any means of enforcement which are not authorised by the legal provisions or regulations of the applicant of State.
3. Requests referred to in paragraph 2 shall be supported by an official copy of the instrument permitting the execution, accompanied where appropriate, by an official copy of any final administrative or judicial decision.
4. The provisions of paragraph 1 of Article 25 shall also apply to any information which, by virtue of this Article, is supplied to the competent authority of a Contracting State.
Rule 27
Members of diplomatic missions and consular posts
Nothing in this Convention shall affect the fiscal privileges of members of a diplomatic mission or consular post under the general rules of international law or under the provisions of special agreements.
Rule 28
Entry into force
1. Each Contracting State shall notify the other Contracting State of the completion of the procedures required by its laws for the bringing into force of this Convention. The Convention shall enter into force on the fifteenth day after the date of the later of these notifications.
2. The provisions of the Convention shall have effect :
a) with regard to taxes due at source, in respect of income credited or payable on or after 1 January,
b) with regard to other taxes, in respect of income for any taxable period ending on or after 31 December,
in the calendar year next following that in which the Convention enters into force.
3. The Agreement between the Government of Belgium and the Government of the Union of South Africa for the avoidance of double taxation in respect of income derived from the business of sea and air transport, concluded by exchange of letters both dated at Cape Town on 11 June 1957, shall - as far as the relations between Belgium and the Republic of South Africa are concerned - terminate and cease to be effective with respect to any tax to which the Convention has effect in accordance with paragraph 2.
Rule 29
Termination
This Convention shall remain in force until terminated by a Contracting State but either Contracting State may terminate the Convention, through diplomatic channels, by giving to the other Contracting State, written notice of termination not later than 30 June of any calendar year from the fifth year following that in which the Convention entered into force. In the event of termination before 1 July of such year, the Convention shall cease to have effect :
a) with regard to taxes due at source, in respect of income credited or payable on or after 1 January,
b) with regard to taxes, in respect of income for any taxable period ending on or after 31 December, in the calendar year next following that in which the notice of termination is given.
IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Convention.
DONE in duplicate at Pretoria this first day of February 1995, in the English language.

TRADUCTION
Convention between the Kingdom of Belgium and the Republic of South Africa 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 South Africa,
Desiring to conclude a Convention to avoid double taxation and to prevent tax evasion in respect of income taxes, agreed as follows:
Article 1er
Target persons
This Convention applies to persons who are residents of a Contracting State or both Contracting States.
Article 2
Taxes targeted
1. This Convention applies to income taxes collected on behalf of a Contracting State or its political subdivisions, 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, as well as taxes on surplus-values.
3. Current taxes to which the Convention applies include:
(a) with regard to Belgium:
(i) the tax of natural persons;
(ii) corporate tax;
(iii) corporation tax;
(iv) non-resident tax;
(v) the special contribution assimilated to the tax of natural persons;
(vi) the complementary contribution of crisis;
including pre-payments, additional cents to such taxes and pre-payments, and additional taxes to the tax of natural persons (hereinafter referred to as "Belgian tax");
(b) in South Africa:
(i) normal tax;
(ii) non-resident shareholder tax;
(iii) secondary corporate tax;
(hereinafter referred to as "South African Tax").
4. The Convention also applies to identical or similar taxes that would be established after the date of signature of the Convention and which would be added to the current taxes or which would replace them the competent authorities of the Contracting States shall communicate the significant amendments made to their respective tax laws.
Article 3
General definitions
1. For the purposes of this Convention, unless the context requires a different interpretation:
(a) (i) the term "Belgium" means the Kingdom of Belgium and used in a geographical location, it designates the territory of the Kingdom of Belgium, including the territorial sea and the maritime zones and the airspaces on which, in accordance with international law, the Kingdom of Belgium exercises sovereign rights or jurisdiction;
(ii) the term "South Africa" means the Republic of South Africa and used in a geographical area, it includes the territorial sea of South Africa and any area outside the territorial sea, including the continental shelf, which has been or would be subsequently designated, under the laws of South Africa and in accordance with international law, as an area on which South Africa may exercise sovereign rights or a jurisdiction;
(b) the terms "a Contracting State" and "the other Contracting State" mean, in the context, Belgium or South Africa;
(c) the term "person" includes individuals, societies and other groups of persons;
(d) the term "corporate" means any corporation or entity that is considered to be a corporation for taxation purposes;
(e) the terms "company of a Contracting State" and "company of the other Contracting State" shall, respectively, designate a business operated by a resident of a Contracting State and a business operated by a resident of the other Contracting State;
(f) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise whose effective steering seat is located in a Contracting State, except where the vessel or aircraft is operated only between points in the other Contracting State;
(g) the term "competent authority" means:
(i) in respect of Belgium, the Director General of Direct Contributions or its authorized representative, and
(ii) with respect to South Africa, the Commissionner for Inland Revenue or its authority representative;
(h) the term "nationals" means:
(i) all natural persons who have the nationality of a Contracting State;
(ii) all legal persons, societies of persons and associations constituted in accordance with the legislation in force in a 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" means:
(a) in respect of Belgium, any person who, under Belgian law, is subject to tax in Belgium, because of his domicile, residence, management seat or any other criterion of analonque nature;
(b) in respect of South Africa, any person who is normally resident in South Africa and any other person whose effective leadership is located in South Africa.
2. Where, according to the provisions of paragraph 1, a natural person is a resident of the two Contracting States, his or her situation shall be settled as follows:
(a) that person is considered to be a resident of the State where the person has a permanent home; if it has a permanent home in both states, it is considered to be a resident of the State with which its personal and economic ties are the narrowest (centre of vital interests);
(b) if the State in which that person has the centre of his or her vital interests cannot be determined, or if it does not have a permanent home in any of the States, it is considered to be a resident of the State in which it normally resides;
(c) if the person normally stays in both States or if he or she does not stay in any of them, he or she is considered to be a resident of the State of which he or she is a national;
(d) if the person possesses the nationality of the two States or has no nationality of any of them, the competent authorities of the Contracting States shall decide the question by mutual agreement.
3. Where, according to the provisions of paragraph 1, a person other than a natural person is a resident of the two Contracting States, it is considered to be a resident of the State where its effective management seat is located.
Article 5
Stable establishment
1. For the purposes of this Convention, the term "stable establishment" means a fixed business facility through which a company operates all or part of its business.
2. The term "stable establishment" includes:
(a) a steering seat;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop, and
(f) a mine, oil or gas well, a quarry or any other place of extraction of natural resurgents.
3. A construction or assembly site or any monitoring activity in the construction or installation site shall be a permanent establishment only if its duration exceeds twelve months.
4. Notwithstanding the preceding provisions of this Article, or considers that there is no "stable establishment" if:
(a) the use of facilities for the sole purpose of storage, exposure or delivery of goods owned by the company;
(b) goods belonging to the undertaking are stored for storage, exposure or delivery purposes only;
(c) goods belonging to the enterprise are stored for the sole purpose of processing by another company;
(d) a fixed business facility is used for the sole purpose of purchasing goods or collecting information for the company;
(e) a fixed business facility is used for the sole purpose of carrying out any other preparatory or auxiliary activity for the enterprise;
(f) a fixed business facility shall be used only for the purpose of the cumulative exercise of activity referred to in subparagraphs (a) to (e), provided that the overall activity of the fixed business facility resulting from this accumulated activity shall be preparatory or auxiliary.
5. Notwithstanding the provisions of paragraphs 1 and 2, where a person other than an agent enjoying an independent status to which paragraph 6 applies shall act on behalf of a business and shall, in a Contracting State, have powers that it normally exercise to enter into contracts on behalf of the enterprise, that undertaking shall be deemed to have a permanent establishment in that State for all activities that the person carries on for the enterprise, unless
6. A business is not considered to have a permanent establishment in a Contracting State solely because it operates in it through a broker, a general commissioner or any other agent with an independent status, provided that such persons act within the ordinary framework of their business.
7. The fact that a corporation that is a resident of a Contracting State controls or is controlled by a corporation that is a resident of the other Contracting State or that operates therein (either through a permanent establishment or not) is not sufficient in itself to make any of these companies a permanent establishment of the other.
Article 6
Revenus immobilièrs
1. The income that a resident of a Contracting State derives from real property (including income from farms or forestry) located in the other Contracting State, is taxable in that other State.
2. The term "real property" has the meaning assigned to it by the law of the Contracting State where 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 property and the rights to variable or fixed payments for the exploitation or concession of the exploitation of mineral deposits, sources and other natural resources. Ships, ships and aircraft are not considered real property.
3. The provisions of paragraph 1 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 1 and 3 also apply to income derived from the real property of a business as well as to income from the immovable 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 an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment located therein, it shall be charged, in each Contracting State, to that permanent establishment the profits that it could have realized if it had constituted a separate undertaking carrying out identical or similar activities under identical or similar conditions and acting independently.
3. In order to determine the benefits of a permanent establishment, deductions are made of the expenses incurred for the purposes of this permanent establishment, including the executive expenses and general administrative expenses so exposed, either in the State where the permanent establishment is located or elsewhere.
4. If it is customary in a Contracting State to determine the profits attributable to a permanent establishment on the basis of a distribution of the total profits of the enterprise between its various parties, no provision in paragraph 2 shall prevent that Contracting State from determining the taxable profits according to the distribution in use. The method of distribution adopted must, however, 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, profits derived from the operation of ships or aircraft in international traffic also include:
(a) Benefits from the naked 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 related to the benefits to which the provisions of paragraph 1 are applicable.
3. If the effective management seat of a marine navigation company is on board a vessel, that seat 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 carrying the vessel, in the Contracting State of which the vessel operator is a resident.
4. The provisions of paragraphs 1 and 2 also apply to benefits derived from participation in a pool, a joint operation or an international operating organization.
Article 9
Associated companies
1. When:
(a) a business of a Contracting State directly or indirectly participates in the direction, control or capital of a business of the other Contracting State, or
(b) the same persons directly or indirectly participate in the direction, control or capital of a business of a Contracting State and a business of the other Contracting State,
and that, in both cases, both companies are, in their commercial or financial relations, bound by agreed or imposed conditions, 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.
2. When a Contracting State includes in the profits of a company of that State - and therefore imposes - profits on which a company of the other Contracting State has been imposed in that other State, and that the profits thus included are profits that would have been realized by the enterprise of the first State if the terms agreed between the two enterprises had been those that would have been agreed between independent enterprises, the other State shall make the adjustment that it considers appropriate of the tax To determine this adjustment, the other provisions of this Convention shall be taken into account and, if necessary, the competent authorities of the Contracting States shall consult.
Article 10
Dividends
1. Dividends paid by a corporation that is a resident of a Contracting State to a resident of the other Contracting State shall be taxable in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the corporation paying the dividends is a resident, and according to the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:
(a) 5 per cent of the gross amount of dividends if the beneficial owner is a corporation that holds directly or indirectly at least 25 per cent of the capital of the corporation that pays the dividends;
(b) 15 per cent of the gross amount of dividends in all other cases.
This subsection does not affect the corporation's taxation of profits that are used to pay dividends.
3. The term "dividends" used in this article refers to income from shares, shares or benefits, share of mine, share of founder or other share of beneficiaries except for receivables, as well as income - even allocated in the form of interest - subject to the same tax regime as income from shares under the domestic tax legislation 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 company is a resident, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the dividend-generating interest is effectively connected to it. In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
5. Where a corporation that is a resident of a Contracting State derives from the profits or income of the other Contracting State, that other State 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 tax
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 resent 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 trade effects, resulting from the payment of goods, goods or services by companies in the future;
(b) interest paid on the basis of a loan made, guaranteed or insured, or a credit granted, guaranteed or insured by a public financial institution or public body under an export promotion regime;
(c) interest in loans of any kind not represented by bearer securities and granted by bank companies;
(d) interest in deposits of amounts of money not represented by holder securities and carried out in banking enterprises;
(e) interest paid to the other Contracting State.
4. The term "interest" used in this section refers to income from receivables of any kind, whether or not accompanied by mortgage guarantees or an interest clause in the debtor's profits, including income from public funds and borrowing obligations, including premiums and lots attached to these securities. However, this term does not include, within the meaning of this section, penalties for late payment or interest treated as dividends under section 10, paragraph 3.
5. The provisions of paragraphs 1, 2 and 3 shall not apply where the beneficial owner of the interest, a resident of a Contracting State, carries on in the other Contracting State in which the interest arises, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the interest-generating debt is effectively linked to it. In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
6. Interest shall be deemed to arise from a Contracting State where the debtor is that State itself, a political subdivision, a local authority or a resident of that State. However, where the debtor of interest, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment, or a fixed base, for which the debt giving rise to the payment of interest has been contracted and which bears the burden of such interests, these shall be deemed to arise from the State where the permanent establishment or fixed base is located.
7. Where, because of special relations between the debtor and the beneficial owner or between the debtor and the other person maintain with third persons, the amount of interest, taking into account the debt for which they are paid, exceeds the amount agreed upon by the debtor and the beneficial owner in the absence of such relations, the provisions of this Article shall apply only to the latter amount. In this case, the surplus portion of the payments shall remain taxable, in accordance with its legislation, in the Contracting State from which the interest arises.
Article 12
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 " royalties" 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 and films, tapes or records registered for radio or television, a computer program, a patent, a trademark or a trade, a drawing or a record of a
3. The provisions of paragraph 1 shall not apply if the beneficial owner of the royalties, a resident of a Contracting State, exercises in the other Contracting State in which the royalties arise, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the right or property that generates royalties is effectively connected to it. In this case, the provisions of Article 7 or Article 14, shall apply.
4. The royalties shall be deemed to arise from a Contracting State when the debtor is that State itself, a political subdivision, a local collectivate or a resident of that State. However, where the debtor of royalties, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment, or a fixed base, for which the contract giving rise to the payment of royalties has been concluded and which bears the charge of such royalties, these shall be deemed to be from the State where the permanent establishment or fixed base is located.
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 immobilized 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 paragraphtion 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 the Contracting State of which the 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 "liberal profession" includes independent scientific, literary, artistic, educational or educational activities, as well as independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15
Dependent professions
1. Subject to the provisions of Articles 16, 18 and 19, the salaries, salaries and similar remuneration that a resident of a Contracting State receives under an employee employment shall be taxable only in that State, unless the employment is exercised in the other Contracting State. If the employment is exercised, the remuneration received as such is taxable in that other State.
2. Notwithstanding the provisions of paragraph 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 for any period of twelve months, and
(b) compensation shall be paid by an employer or on behalf of an employer who is not a resident of the other State, and
(c) the pay charge is not borne by a permanent establishment or a fixed base that the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article, remuneration received for an employee employed on board a ship or aircraft operated in international traffic shall be taxable in the Contracting State where the effective management seat of the enterprise is located.
Article 16
Elevenths
1. The fortieth, attendance and 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 subsection 1 receives from the corporation as a result of the exercise of a day-to-day management or technical activity shall be taxable in accordance with the provisions of section 15, as if it were remuneration that an employee derives from an employee's employment and as if the employer were the corporation.
The foregoing provision also applies, with respect to Belgium, to the remuneration that a resident of South Africa derives from his personal activity as a partner in a corporation, other than a share corporation, which is a resident of Belgium.
Article 17
Artists and athletes
Notwithstanding the provisions of articles 7, 14 and 15:
(a) income derived by a resident of a Contracting State from his or her personal activities in the other Contracting State as an artist of the show, such as a theatre, film, radio or television artist, or a musician, or as a sportsman, may be taxed in that other State;
(b) where the income of activities that a performance artist or a sportsman exercises personally and in this capacity is attributed not to the artist or athlete himself but to another person, such income shall be taxable in the Contracting State where the activities of the artist or athlete are carried out.
Article 18
Pensions
1. Subject to the provisions of Article 19, paragraph 2, similar pensions and remuneration, paid to a resident of a Contracting State for an earlier job, shall be taxable only in that State.
2. However, pensions and other allowances, periodic or unpaid, paid in accordance with the social legislation of a Contracting State shall be taxable only in that State. This provision also applies to pensions and allowances paid under a general regime organized by that Contracting State to supplement the benefits provided by that legislation.
Article 19
Public functions
1. (a) Compensation, other than pensions, paid by a Contracting State or any of its political subdivisions or local authorities to a natural person, for services rendered to that State or subdivision or community, shall be taxable only in that State.
(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and if the natural person is a resident of that State who:
(i) has the nationality of that State; or
(ii) did not become a resident of that State for the sole purpose of rendering the services.
2. (a) Pensions paid by a Contracting State or any of its political subdivisions or local authorities, either directly or by debiting from funds that they have constituted, to a natural person, for services rendered to that State or to that subdivision or community, shall be taxable only in that State.
(b) However, such pensions shall be taxable only in the other Contracting State if the natural person is a resident of that State and has its nationality.
3. The provisions of Articles 15, 16 and 18 apply to remuneration and pensions paid for services rendered in an industrial or commercial activity carried out by a Contracting State or one of its political subdivisions or local authorities.
Rule 20
Students and trainees
A student or trainee who temporarily resides in a Contracting State for the sole purpose of pursuing his or her education or training and who is, or was immediately before that stay, a resident of the other Contracting State, is not taxable in the first State on the amounts that he or she receives from sources outside that first State to cover his or her maintenance, education or training expenses.
Article 21
Other income
A resident of a Contracting State shall not be taxable in the other Contracting State on the elements of his or her income which are not dealt with in the preceding Articles of this Convention, if he or she is taxable in the first State on those income elements.
Article 22
Prevention of double taxation
1. With regard to Belgium:
(a) Where a resident of Belgium receives income that is taxable in South Africa in accordance with the provisions of this Convention, with the exception of those of articles 10, paragraph 2, 11, paragraphs 2 and 7, and 12, paragraph 5, Belgium exempts from tax these incomes but may, in calculating the amount of its taxes on the rest of the income of that resident, apply the same rate as if the income in question had not been exempted.
(b) Subject to the provisions of Belgian law relating to the imputation on Belgian tax of taxes paid abroad, where a Belgian resident receives income elements that are included in his or her total income subject to Belgian tax and that consist of taxable dividends in accordance with Article 10, paragraph 2, and not exempted from Belgian tax under (c) below, in taxable interest in accordance with Article 11, paragraphs 2 or 7,
(c) Dividends within the meaning of Article 10, paragraph 3, that a corporation that is a resident of Belgium receives from a company that is a resident of South Africa are exempted from the corporate tax in Belgium, under the conditions and limits provided for in Belgian law.
(d) Where, in accordance with Belgian law, losses incurred by a company operated by a Belgian resident in a permanent establishment located in South Africa 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 these profits have not been subject to tax in South Africa with respect to their tax.
2. Regarding South Africa:
(a) Belgian taxes paid by residents of South Africa on taxable income in Belgium, in accordance with the provisions of the Convention, are deducted from taxes due under the tax legislation of South Africa. However, this deduction cannot exceed the portion of South African tax, calculated before deduction, corresponding to taxable income in Belgium.
(b) With respect to the application of the provisions under paragraph (a), it is understood that the amount of South African tax corresponding to the revenues that have been subject to Belgian tax is equal:
(i) where the tax on these revenues is calculated by applying a proportional rate to the amount of the net income affected multiplied by that rate, and
(ii) where the tax on these revenues is calculated by a progressive scale, to an amount corresponding to the net income concerned in the same proportion as the total of the tax payable is the total of the taxable net income in accordance with the tax legislation of South Africa.
Article 23
Non-discrimination
1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or obligation relating thereto, which is other or heavier than those to which nationals of that other Contracting State are or may be subject to the same situation, particularly in respect of the residence. This provision also applies, notwithstanding the provisions of Article 1, to persons who are not residents of a Contracting State or both Contracting States.
2. 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.
3. Unless the provisions of Article 9, paragraph 1, Article 11, paragraph 7 or Article 12, paragraph 5, are applicable, interest, royalties and other expenses paid by a business of a Contracting State to a resident of the other Contracting State shall be deductible, for the determination of the taxable profits of that undertaking, on the same terms as if they had been paid to a resident of the first Contracting State.
4. 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.
5. Nothing in this article shall be construed as preventing Belgium:
(a) to impose at the rate provided by Belgian legislation the benefits of a permanent Belgian establishment of a company that is a resident of South Africa, provided that the above-mentioned rate does not exceed the normal rate applicable to the profits of companies that are residents of Belgium;
(b) to take the movable pre-payment on the dividends associated with an equity interest in a stable establishment in Belgium that is a resident of South Africa.
6. In this section, the term "tax" refers to the taxes subject to this Agreement.
Article 24
Friendly procedure
1. Where a person considers that the measures taken by a Contracting State or by the two Contracting States shall impede 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 23, paragraph 1erto that of the Contracting State of which it has nationality. The case shall be submitted within three years after the first notification of the measure that results in taxation not in conformity with the provisions of the Convention.
2. The competent authority shall endeavour, if the request appears to it to be founded and if it is not itself able to make a satisfactory solution to it, to resolve the case by amicable agreement with the competent authority of the other Contracting State, with a view to avoiding taxation not in conformity with the Convention.
3. The competent authorities of the Contracting States shall endeavour by mutual agreement, to resolve the difficulties or to dispel the doubts to which the interpretation or application of the Convention may take place.
4. The competent authorities of the Contracting States shall agree on the administrative measures necessary for the implementation of the provisions of the Convention and in particular on the justifications to be provided by the residents of each Contracting State for the benefit in the other State of the exemptions or tax reductions provided for in this Convention.
5. The competent authorities of the Contracting States shall communicate directly with each other for the purposes of the Convention.
Rule 25
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. The exchange of information is not restricted by section 1. The information relied upon by a Contracting State shall be kept secret in the same manner as the information obtained under the domestic legislation of that State and shall be communicated only to the persons or authorities (including the courts and administrative bodies) concerned by the establishment or collection of the taxes covered by the Convention, by the procedures or prosecutions relating to such taxes, or by the decisions on remedies relating to such taxes. These individuals or authorities only use this information for these purposes. They may report this information at public court hearings or in judgments.
2. In no case shall the provisions of paragraph 1 be construed as imposing on a Contracting State the obligation:
(a) take administrative measures derogating from its legislation, administrative practice or those of the other Contracting State;
(b) provide information that could not be obtained on the basis of its legislation or in the course of its normal administrative practice or those of the other Contracting State;
(c) provide information that would reveal a commercial, industrial, professional or commercial secret or information that would be contrary to public order.
Rule 26
Recovery assistance
1. The Contracting States undertake to lend each other assistance and assistance in order to notify and recover the taxes referred to in Article 2 as well as any administrative increments, interests and fines related to these taxes.
2. Upon request by the competent authority of a Contracting State, the competent authority of the other Contracting State shall, in accordance with the legal and regulatory provisions applicable to the notification and recovery of the said taxes of the other Contracting State, ensure the notification and recovery of the tax claims referred to in paragraph 1, which are due in the first State and shall not be subject to any good faith challenge at the date on which recovery measures are taken by the other Contracting State. These claims do not enjoy any privilege in that other State, and it is not required to apply enforcement means that are not authorized by the legal or regulatory provisions of the requesting State.
3. The requests referred to in paragraph 2 shall be supported by an official copy of the enforceable titles, accompanied, if purchased, by an official copy of the administrative or judicial decisions passed in force of the evidence.
4. The provisions of Article 25, paragraph 1, shall also apply to any information brought under this Article to the knowledge of the competent authority of a Contracting State.
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.
Rule 28
Entry into force
1. Each Contracting State shall notify the other Contracting State of the fulfilment of the procedures required by its legislation for the entry into force of this Convention. The Convention shall enter into force on the fifteenth day of receipt of the second notification.
2. The provisions of the Convention shall apply:
(a) taxes due to the source on income awarded or paid from 1er January,
(b) other taxes on income of any tax period ending on 31 December,
of the calendar year immediately following that of the entry into force of the Convention.
3. The Agreement between the Government of Belgium and the Government of the Union of South Africa to Avoid Double Taxation of Revenues from the Exploitation of Maritime or Air Transport, concluded by exchange of letters, both dated 11 June 1957 in Cape Town, will cease and cease to apply - with respect to the relations between Belgium and the Republic of South Africa - to any tax in respect of which the Convention produces its effects.
Rule 29
Denunciation
This Convention shall remain in force as long as it has not been denounced by a Contracting State, but each of the Contracting States may, until 30 June inclusive of any calendar year from the fifth year following that of the entry into force, denounce it, in writing and through diplomatic channels, to the other Contracting State. In case of denunciation before July 1 of such a year, the Convention shall cease to apply:
(a) taxes due to the source on income awarded or paid from 1er January,
(b) other taxes on income of any tax period ending on 31 December,
the calendar year immediately following the denunciation.
In faith, the undersigned, duly authorized by their respective Governments, have signed this Convention.
Done in Pretoria, 1er February 1995, in duplicate, in the English language.

In accordance with article 28, this Convention comes into force on 10 October 1998.