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A protocol to the double taxation convention between the UK and Belgium has been signed in Paris.
The text will be presented to Parliament for approval, and it will enter into force once both countries have completed their legislative procedures. Its provisions will then take effect from the next calendar year.
The protocol updates the exchange of information article of the convention to bring it into line with current Organisation for Economic Co-operation and Development standards and practice.
It also introduces a provision dealing with mutual agreement, which will provide binding arbitration in the event of a protracted dispute between the two tax authorities.
In addition to several other technical revisions, the new document provides for a new dividends article that grants zero withholding tax to direct investors and pension funds, and a new interest article that removes withholding tax on all interest paid between enterprises.
