Germany-Belgium Double Tax Treaty

The double taxation agreement between Germany and Belgium

The double taxation agreement signed by Germany and Belgium aims to eliminate the double taxation in both countries or to reduce the tax rates, where possible. Among the provisions of the double taxation agreement between Germany and Belgium are:

• - the prohibition on tax discrimination,
• - provisions regarding amicable settlements in case of conflicting situations,
• - exchange of tax information between Germany and Belgium,
• - tax evasion and fraud prevention.

For complete information with respect to all the provision of the taxation agreement with Belgium you may refer to our German attorneys.

The new provisions of the Germany-Belgium double tax treaty

Germany and Belgium have signed their first agreement for the avoidance of double taxation in 1966. The tax treaty was enforced in 1967 and renewed in 2003. The main provision of the double tax treaty refers to the treatment applied to Belgian and German employees working in the contracting states. The agreement states that the taxes levied on the incomes resulted from employment services will be taxed at source where those services are provided. Another provision of the Germany-Belgium double tax treaty enforced in 2002 refers to the capital gains tax and royalties.

The renewed double taxation treaty Germany signed with Belgium also contains provisions about the taxation of German individuals living in Belgium. The new provisions state that an additional tax will be levied on the personal income tax for German citizens living in certain Belgian cities. These taxes will be established by the local authorities and will be levied in Belgium only. Also, the tax rate imposed to Belgian individuals working in Germany was set out at 8%, beginning with 2003.

Other tax rates in the Germany-Belgium double taxation agreement

Even if certain provisions in the Germany-Belgium double tax treaty have changed, the provisions with respect to the taxation of dividends, interests and royalties have remained the same since 1967. The withholding tax rates applied in Germany and Belgium are:

• - 15% for dividends,
• - 0% for interests,
• - 0% for royalties.

For information about the other double taxation treaties you may contact our law firm in Germany.