UAE-Belgium Double Taxation Treaty

The UAE and Belgium have signed their first double taxation agreement in 1996. The treaty was signed for a 5-year period of time and renewed every time it expired. The UAE-Belgium double tax treaty covers the following taxes:

  • The individual and corporate income taxes, the tax applied to local companies, the tax applied to non-residents and the special levy applied to the individual income tax in Belgium
  • The individual and corporate income taxes in the UAE

The document also provides for special surcharges applied different taxes in both countries. The taxes will be collected by the authorities in both contracting states. The avoidance of double taxation will occur by granting exemptions or credits against the taxes paid by an individual or Company in one of the contracting states. The method depends on the income falling under the governance of the UAE-Belgium double tax agreement.

Elements of income covered by the UAE-Belgium double tax treaty

The agreement between UAE and Belgium covers the incomes stated above, but also other elements of these incomes. These are:

  • Income resulted from the sale or rental of immovable property,
  • Business profits,
  • Capital gains,
  • Dividend, interest and royalties payments,
  • Incomes derived from shipping and air transport activities,
  • Salaries and pensions,
  • Governmental services,
  • Manager(s) fees.

With respect to the taxation of dividends, interests and royalties the following reduced rates apply:

  • 5% on the gross amount of the dividends if the recipient owns at least 25% of the voting shares in the Company paying the dividends,
  • 10% in all other cases,
  • A maximum rate of 5% on the gross amount in the case of interest payments,
  • A maximum rate of 5% on the gross amount on royalties.

For information related to other taxes under the double taxation treaty with Belgium you can refer to our specialists in Dubai.

Special provisions in the UAE-Belgium double taxation agreement

The agreement against double taxation between the UAE and Belgium also contains three special provisions:

  • A clause on the exchange of tax information,
  • A clause on non-discrimination,
  • A mutual agreement procedure.

For complete information about the provisions of the double tax treaty with Belgium do not hesitate to contact our experts in Company registration in Dubai.