Switzerland Belgium Double Taxation Treaty
Switzerland-Belgium Double Taxation TreatyUpdated on Monday 21st September 2015
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Switzerland-Belgium double tax agreement
Among the countries Switzerland has signed double taxation agreements with is also Belgium. Switzerland and Belgium have signed their double tax treaty in 1978 and ever since the agreement was amended once in 1980. The agreement between the two countries refers to the avoidance of double taxation with respect to the following:
- - the Belgian individual and corporate income taxes, the corporate tax, the income tax applied to non-residents, the solidarity contribution;
- - the Swiss federal, cantonal and communal income tax and the capital tax.
The convention does not apply to lottery prizes.
What does the Switzerland-Belgium double taxation treaty define?
In its first articles, the Swiss-Belgian double taxation agreement defines both countries’ territorial borders, the persons the convention applies to, the authorities collecting the taxes, the terms “resident” and “permanent establishment”. With respect to the persons benefiting from the double taxation agreement between Switzerland and Belgium, these are defined as:
- - any Belgian or Swiss citizen or resident,
- - Belgian and Swiss companies,
- - any other body of persons.
With respect to residents, the agreement defines any person who under the law of one of the contracting states is liable to pay taxes in Switzerland and Belgium. The term resident covers both natural and corporate persons. The term “permanent establishment” refers to a fixed place of business where a company carries out its activities. Belgian and Swiss branch offices and subsidiaries are considered permanent establishments.
The taxation of income under the Swiss-Belgian double taxation treaty
The double taxation agreement between Switzerland and Belgium covers the following types of incomes:
- - incomes resulted from the alienation of movable and immovable property in Switzerland and Belgium,
- - business profits,
- - dividends, interests and royalties,
- - capital gains,
- - employment incomes earned by Belgian and Swiss employees,
- - directors’ fees.
The elimination of double taxation in Switzerland may be done be tax relief through a deduction of the tax paid in Belgium or a partial exemption of the tax paid in Switzerland.
For other information about the double taxation agreement with Belgium you may also contact our law firm in Switzerland.