The Double Taxation Relief and International Tax Enforcement (Belgium) Order 2010

Statutory Instruments

2010 No. 2979

Income Tax

Corporation Tax

Capital Gains Tax

Petroleum Revenue Tax

The Double Taxation Relief and International Tax Enforcement (Belgium) Order 2010

Made

15th December 2010

At the Court at Buckingham Palace, the 15th day of December 2010

Present,

The Queen’s Most Excellent Majesty in Council

A draft of this Order was laid before the House of Commons in accordance with section 5(2) of the Taxation (International and Other Provisions) Act 2010(1) and section 173(7) of the Finance Act 2006(2) and approved by a resolution of that House.

Accordingly, Her Majesty, in exercise of the powers conferred upon Her by section 2 of the Taxation (International and Other Provisions) Act 2010 and section 173(1) of the Finance Act 2006, by and with the advice of Her Privy Council, orders as follows—

Citation

1.  This Order may be cited as the Double Taxation Relief and International Tax Enforcement (Belgium) Order 2010.

Double taxation and international tax enforcement arrangements to have effect

2.  It is declared that—

(a) the arrangements specified in the Protocol set out in the Schedule to this Order, which vary the arrangements set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Belgium) Order 1987(3), have been made with the Government of the Kingdom of Belgium with a view to affording relief from double taxation in relation to income tax, corporation tax, capital gains tax, petroleum revenue tax and taxes of a similar character imposed by the laws of Belgium and for the purpose of assisting international tax enforcement;

(b) it is expedient that the arrangements should have effect.

Judith Simpson

Clerk of the Privy Council

Article 2

SCHEDULE

EXPLANATORY NOTE

(This note is not part of the Order)

The Schedule to this Order contains a Protocol (“the Protocol”) which amends the Convention between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, which was scheduled to the Double Taxation Relief (Taxes on Income) (Belgium) Order 1987 (S.I. 1987/2053) (“the Convention”). This Order brings the Protocol into effect.

Article 1 provides for citation.

Article 2 makes a declaration as to the effect and content of the Protocol.

The Convention aims to eliminate the double taxation of income or gains arising in one country and paid to residents of the other country. It does this by dividing the taxing rights that each country has under its domestic law over the same income and gains, and/or by providing relief from double taxation. It also has specific measures which combat discriminatory tax treatment and provide for assistance in international tax enforcement. The Protocol continues this approach.

The Protocol will enter into force on the date of the later of the notifications by each country of the completion of its legislative procedures. It will take effect in the United Kingdom—

(a) in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6th April in the calendar year next following that in which the Protocol enters into force;

(b) in respect of corporation tax, for any financial year beginning on or after 1st April in the calendar year next following that in which the Protocol enters into force; and

(c) in respect of petroleum revenue tax, for any chargeable period beginning on or after 1 January in the calendar year next following that in which the Protocol enters into force.

The Protocol will take effect in Belgium—

(a) in respect of taxes due at source on income credited or payable on or after 1 January in the calendar year next following that in which the Protocol enters into force; and

(b) in respect of all taxes other than taxes due at source on income for any chargeable period ending on or after 31 December in the calendar year next following that in which the Protocol enters into force.

The Protocol will take effect in respect of exchange of information on the date it enters into force.

The date(s) of entry into force will, in due course, be published in the London, Edinburgh and Belfast Gazettes.

A full and final Impact Assessment has not been produced for this Order as a negligible impact on the private or voluntary sectors is foreseen.

(1)

2010 c. 8.

(2)

2006 c. 25.

(3)

S.I. 1987/2053.