Double Taxation Agreement South Africa And Belgium

If you want to start a business and need details about the tax system, you can contact our Belgian law firm. Qatar, Oman and Bahrain have also entered into advantageous double taxation agreements with Belgium. They contain provisions relating to withholding tax on interest and royalties of 5%, and dividends are tax-exempt in some cases. Double taxation is avoided either by the fact that the right to collect taxes exclusively on the place of residence of the subject is either by recognizing the right of the place of residence of the subject concerned or by imposing taxes on him. This means either that the country of residence of the taxeper deducts the tax collected in the country of origin from the tax itself, or that taxable income is tax-exempt in the country of origin. Since the main purpose of the participation exemption is to avoid «double taxation», the central question is whether a local tax holiday that could benefit the African subsidiary involves a piori that is subject to corporation tax amounting to 33.99% of a dividend or a capital gain on the shares in both directions. Indeed, as has already been mentioned, the exemption from participation is subject to the fundamental condition that the foreign subsidiary be subject to a «normal income tax». This is why it is important to exploit the economic opportunities offered by the double taxation agreements that Belgium has with different countries. Belgium has dual tax agreements with the following Asian countries: China, India, Indonesia, Japan, Mongolia, Taiwan, Thailand, the United Arab Emirates and Vietnam. Our team of lawyers in Belgium can help interested foreign investors obtain additional or specific information about a contract signed with another specific contract. In this article, we present the purpose of the treaties in force in Belgium and list some of the countries with which Belgium has signed such agreements. Third countries that have double taxation agreements with Belgium: Croatia, Iceland, Macedonia, Moldova, Norway, Serbia, Montenegro and Switzerland.

For the most part, we discussed the situation in which a Belgian parent company has a subsidiary – that is, a full-fledged legal entity – in the African country where it wants to develop business. Another solution may be that the Belgian company has a branch or a stable establishment in that country. The two terms (or legal and fiscal) refer to an operational branch in this state of work, which is legally owned by the Belgian company`s legal person and develops its main activity in that country.

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