Belgium

This Convention applies to persons resident in one or both Contracting States.

§1. This Convention applies to income and property taxes payable by each Contracting State, its political subdivisions and local authorities, irrespective of the levy system.

§2. Income and property taxes are those which tax all or any part of the income or property, including taxes on profits resulting from the disposal of movable or immovable property, taxes on the amount of salaried property paid by undertakings (not including social security contributions), as well as capital gains taxes,

§ 3. The current taxes to which this Convention specifically applies are:

1.^or In Spain:

(a) General Income Tax for Physical Persons;

(b) The General Income Tax on Companies and Other Legal Entities, including the special levy established by article 104 of Law 41/1964 of 11 June;

(c) The following taxes on account: the Territorial Contribution on Rustic and Pecuaria Wealth, the Territorial Contribution on Urban Wealth, the Income Tax on Personal Work, the Capital Income Tax and the Tax on Commercial and Industrial Activities and Benefits;

(d) In Sahara and Ifni, income taxes (labour and property) and taxes on the profits of enterprises:

(e) For undertakings governed by the Act of 26 December 1958 engaged in the investigation and exploitation of hydrocarbons, in addition to the other taxes listed in this article, the area tax, the gross product tax and the excise duty on the profits of those companies;

(f) Local taxes, income or property taxes and capital gains.

2.^or In Belgium:

(a) Tax on natural persons;

(b) Corporate tax;

(c) Tax on legal persons;

(d) Tax on non-residents;

including account taxes and their supplements, surcharges on the above, as well as the local additional tax on natural persons' tax.

§4. This Convention shall also apply to future taxes of an identical or similar nature which are added to or replaced by existing taxes. Each year, the competent authorities of the Contracting States shall notify each other of any amendments made to their respective tax laws,

§1. This Convention, unless otherwise interpreted:

1.^or The term ‘Belgium’, used geographically, means the territory of the Kingdom of Belgium; the term ‘Spain’, used in the same sense, means the Spanish State (Spain peninsular, the Balearic Islands and the Canary Islands and the Spanish squares and provinces in Africa);

2. The words ‘one Contracting State’ and ‘the other Contracting State’ mean Spain or Belgium, as derived from the text;

3.° The term ‘person’ includes natural persons, corporations and any other grouping of persons;

4. the term 'company' means any legal person or any entity that is considered a legal person for tax purposes in the State of which it is resident;

5. The terms 'undertaking of one Contracting State' and 'undertaking of the other Contracting State' mean, respectively, an undertaking operated by a resident of one Contracting State and an undertaking operated by a resident of the other Contracting State;

6. The expression ‘competent authority’ means:

(a) in Belgium, the competent authority in accordance with its national law; and

(b) in Spain, the Minister of Finance, the Director-General of Direct Taxes or any other authority to which the Minister delegates.

§2. For the purposes of the application of this Convention by a Contracting State, any expression not otherwise defined shall, unless the text requires a different interpretation, have the meaning attributed to it by the law of that Contracting State, relating to the taxes which are the subject of this Convention.

§1. For the purposes of this Convention, any person who, under the law of that State, is subject to taxation in that State by reason of his domicile, residence, place of address or any other criterion of a similar nature is considered a ‘resident of a Contracting State’.

§2. Where, under the provisions of paragraph 1, a natural person is resident in both Contracting States, the case shall be settled according to the following rules:

(a) This person shall be considered a resident of the Contracting State where he or she has a permanent dwelling at his or her disposal. If he has a permanent dwelling at his disposal in both Contracting States, he shall be considered a resident of the Contracting State with which he has closer personal and economic relations (centre of vital interests);

(b) If the Contracting State in which that person has the centre of his or her vital interests cannot be determined, or if he or she does not have permanent housing at his or her disposal in any of the Contracting States, he or she shall be considered a resident of the Contracting State in which he or she normally lives;

(c) If he or she is habitually resident in both Contracting States or does not live in either Contracting State, he or she shall be considered a resident of the Contracting State of which he or she is a national;

(d) If he is a national of either Contracting State or is not a national of either Contracting State, the competent authorities of the Contracting States shall decide the case by mutual agreement.

§ 3. Where, under the provisions of paragraph 1, a person, excluding natural persons, is a resident of both Contracting States, he or she shall be considered a resident of the Contracting State in which his or her place of effective management is located.

§1. For the purposes of this Agreement, the term ‘permanent establishment’ means a fixed place of business in which an undertaking carries out all or part of its activity.

§2. The term ‘permanent establishment’ includes in particular:

(a) the head offices;

(b) branches;

(c) Offices;

(d) factories;

(e) Workshops;

(f) mines, quarries or any other place of exploitation of natural resources;

(g) construction or assembly works lasting more than 12 months.

§ 3. The term ‘permanent establishment’ does not include:

(a) the use of facilities for the sole purpose of storing, displaying or delivering goods belonging to the undertaking;

(b) the maintenance of a warehouse of goods belonging to the undertaking for the sole purpose of storing, displaying or delivering them;

(c) the maintenance of a warehouse of goods belonging to the undertaking for the sole purpose of processing by another undertaking;

(d) the maintenance of a fixed place of business for the sole purpose of purchasing goods or collecting information for the undertaking;

(e) the maintenance of a fixed place of business for the sole purpose of advertising, providing information; conducting scientific research or other similar activities which are preparatory or auxiliary in nature provided that such activities are carried out for the undertaking itself.

§4. A person acting in a Contracting State on behalf of an undertaking of the other Contracting State, except in the case of an independent agent covered by paragraph 5, is considered to constitute a permanent establishment in the State first mentioned if he has and habitually exercises in that State powers to conclude contracts on behalf of the undertaking, unless his activities are limited to the purchase of goods for that undertaking.

§ 5. An undertaking of one Contracting State is not considered to have a permanent establishment in the other Contracting State merely because it carries out activities in that other State through a broker, a general commissioner or any other mediator enjoying an independent status, provided that these persons act within the ordinary framework of their activity,

The mediator acting on behalf of an insurance undertaking and habitually concluding contracts on behalf of an insurance undertaking is not covered by this provision.

§ 6. The fact that a company resident of a Contracting State controls a company that is resident of the other Contracting State or that carries out activities in that other State (whether by permanent establishment or otherwise), does not in itself make any of these companies permanent establishment of the other State.

§1. Income from immovable property may be taxed in the Contracting State in which such property is situated.

§2. The term ‘real property’ shall be defined in accordance with the law of the Contracting State in which the property is situated. In any event, this term includes accessories, livestock and equipment used on agricultural and forestry holdings, rights to which the provisions of private law relating to territorial property, the use of immovable property and rights to variable or fixed fees for the exploitation or concession of the exploitation of mineral deposits, sources or other land wealth apply. Credits secured by mortgage on the above-mentioned assets, as well as ships, ships and aircraft, are not considered real property.

§ 3. The provisions of paragraph 1 apply to income derived from the direct use, lease or any other form of exploitation of immovable property.

§4. The provisions of paragraphs 1 and 3 also apply to income derived from immovable property of undertakings and immovable property used for the pursuit of professional services.

§1. The profits of an undertaking in a Contracting State may be taxed only in that State unless the undertaking carries out operations in the other State by means of a permanent establishment situated in that State. In the latter case, the profits of the company may be taxed in the other State, but only to the extent that they can be attributed to the permanent establishment.

§2. Without prejudice to paragraph 3, where an undertaking of one Contracting State engages in business in the other Contracting State through a permanent establishment situated therein, in each Contracting State the permanent establishment shall be credited with the profits it would obtain if it were a separate undertaking carrying out the same or similar activities under the same or similar conditions and acting entirely independently.

§ 3. For the purpose of determining the benefit of the permanent establishment, the deduction of expenses for the purposes of the permanent establishment shall be allowed, duly demonstrated, including management and general administrative expenses for the same purposes, equally demonstrated, whether incurred in the State in which the permanent establishment is located or elsewhere.

§4. In the absence of sufficient accounting to determine the amount of profits of an undertaking of one Contracting State attributable to its permanent establishment situated in the other State, the tax may be determined in that other State in accordance with its own law. However, the method applied should be such that the result obtained is in accordance with the principles set out in this article.

§ 5. No benefit shall be attributed to a permanent establishment merely because it buys goods for the undertaking.

§ 6. Where the profits of an undertaking comprise income regulated separately in other articles of this Convention, the provisions of those articles shall not be affected by those of this Article, with regard to the taxation of such income.

§1. Notwithstanding Article 7, paragraphs 1 to 5, profits from the operation of ships or aircraft in international traffic may be taxed only in the Contracting State where the place of effective management of the enterprise is located.

§2. If the place of effective management of a shipping company in international traffic is on board a ship, this seat shall be deemed to be in the Contracting State where the port-base of this ship is located, and if there is no such port-base, in the Contracting State in which the person operating the ship resides.

§ 3. The provisions of paragraph 1 also apply to the profits of an enterprise of a Contracting State from a pool of a joint holding or from an International Agency for the Exploitation of Maritime or Air Navigation.

When:

an undertaking of a Contracting State participates, directly or indirectly, in the direction, control or financing of an undertaking of the other Contracting State;

or the same persons participate, directly or indirectly, in the direction, control or financing of an undertaking of a Contracting State and of an undertaking of the other Contracting State,

and in either case the two companies are; in their commercial or financial relations, bound by terms, accepted or imposed; which differ from those to be agreed by independent undertakings, the profits that one of the companies would have obtained in the absence of these conditions, and which in fact have not occurred because of them, may be included in the profits of this undertaking and subject to taxation accordingly.

§1. Dividends paid by a company resident of one Contracting State to a resident of the other Contracting State may be taxed in the latter State.

§2. However, such dividends may be taxed in the Contracting State in which the company paying the dividends resides, and in accordance with the law of that State, but the tax thus required may not exceed 15 per 100 of the gross amount of such dividends.

This paragraph does not affect the company's taxation of profits from which dividends are paid.

§ 3. The term ‘dividend’ used in this Article includes the income from shares, shares or enjoyment bonds, parts of mines, parts of founders or other rights, except credit rights, which permit participation in profits, as well as income from other social participations subject to the same regime as the income from shares under the tax law of the State in which the distribution company resides;

This term also covers income — including those paid in the form of interest — which may be taxed as income derived from capital invested by members of companies, other than shares, resident in Belgium.

§4. The provisions of paragraphs 1 and 2 do not apply if the beneficiary of the dividends, resident of one Contracting State, has in the other Contracting State, of which the company that pays the dividends is resident, a permanent establishment with which the share generated by the dividends is effectively linked. In this case, dividends may be taxed in this other State in accordance with its legislation.

§ 5. Where a company resident of one Contracting State obtains profits or income from the other Contracting State, that other State may not require any tax on dividends paid outside its territory by that company to persons who are not residents of that other State or subject the undistributed profits of the company to any additional tax, even if dividends paid or profits not distributed consist, in whole or in part, of profits or income from that other State; this provision does not prevent that other State from imposing dividends corresponding to a participation actually linked to a permanent establishment operated in that other State by a resident of the first State.

§1. Interest from a Contracting State paid to a resident of the other Contracting State may be taxed in the latter State.

§2. However, these interests may be subject to taxation in the Contracting State from which they come, and in accordance with the law of that State, but the tax thus required may not exceed 15 per cent of the amount of interest.

§ 3. The term ‘interest’ used in this Article includes income from public debt, from obligations with or without a mortgage guarantee and entitled or not to participate in profits and, without prejudice to paragraph 4, credit or deposits of any kind, as well as lots of borrowings and any other income which the tax legislation of the State from which the interest comes subject to the same regime as the income from the amounts lent or deposited.

§4. This article does not apply.

(a) interest treated as dividends pursuant to Article 10(3)(2);

(b) interest on commercial claims — including those represented by trade effects — arising from the deferment of payment for the delivery of goods or products or the provision of services by an undertaking of a Contracting State to a resident of the other Contracting State;

(c) interest on current accounts or advances made between banks of the two Contracting States.

The interests referred to in subparagraphs (b) and (c) above shall be governed by the provisions of article 7.

§ 5. The provisions of paragraphs 1 and 2 do not apply if the beneficiary of the interest, resident of one Contracting State, has in the other Contracting State, from which the interest derives a permanent establishment with which the credit or deposit generated by the interest is effectively linked. In this case, interest may be taxed in this other State in accordance with its law.

§ 6. Interests are considered to come from a Contracting State where the debtor is the State itself, one of its political subdivisions, one of its local entities or a resident thereof. However, where the debtor of interest, whether or not he is resident of a Contracting State, has in the other Contracting State a permanent establishment in respect of which the debt has been incurred, which gives rise to the interest, and this establishment supports the payment thereof, the interest shall be deemed to have come from the Contracting State where the permanent establishment is located.

§ 7. Where, due to special relationships between the debtor and the creditor or depositor or between the debtor and any other person, the amount of interest paid, taking into account the receivable or deposit for which it is paid, exceeds the amount that would have been agreed upon by the debtor and the creditor or depositor in the absence of such relationships, the limitation provided for in paragraph 2 shall apply only to the latter amount. In this case, the excess of interest may be subject to taxation in the Contracting State from which the interest comes and in accordance with its legislation.

§1. The previous fees of one Contracting State paid to a resident of the other Contracting State may be subject to and imposed in the latter State.

§2. However, these fees may be subject to taxation in the Contracting State from which they come, and in accordance with the law of that State, but the tax thus required may not exceed 5 per 100 of the gross amount of the fees.

§ 3. The term ‘royalties’ used in this Article includes amounts of any kind paid for the use or granting of copyright on literary, artistic or scientific works, including cinematographic, patent, trademark or trade mark films, designs, plans, formulas or secret procedures, as well as for the use or granting of use of industrial, commercial or scientific equipment, which do not constitute immovable property listed in Article 6, and amounts paid for information relating to industrial, commercial or scientific experience.

§4. The provisions of paragraphs 1 and 2 do not apply if the beneficiary of the royalties, resident of one Contracting State, has in the other Contracting State, from which the royalties come, a permanent establishment with which the right or ownership for which the royalties are paid is effectively linked. In this case the fees may be subject to taxation in this other State, in accordance with its legislation,

§ 5. The fees are considered to come from a Contracting State where the debtor is the State itself, one of its political subdivisions, one of its local entities or a resident thereof. However, where the debtor of the royalties, whether or not he is a resident of a Contracting State, has in a Contracting State a permanent establishment for which the contract giving rise to the payment of the royalties has been concluded and this establishment supports the payment thereof, the royalties shall be deemed to have come from the Contracting State in which the permanent establishment is situated.

§ 6. Where, due to special relations between the debtor and the beneficiary of the royalties, or between the two and any other person, the amount of the royalties paid, taking into account the benefit for which they are paid, exceeds the amount that would have been agreed by the debtor and the beneficiary in the absence of such relationships, the limitation provided for in paragraph 2 shall apply only to the latter amount. In this case, the excess of the fees may be taxed in the Contracting State from which the fees come and in accordance with its legislation.

§1. Profits arising from the disposal of immovable property, as defined in article 6, paragraph 2, may be taxed in the Contracting State in which they are located.

§2. Gains from the disposal of movable property forming part of the assets of a permanent establishment held by an undertaking of one Contracting State in the other Contracting State, or from movable property belonging to a fixed base held by a resident of one Contracting State in the other Contracting State for the pursuit of a professional activity, including gains arising from the disposal of the permanent establishment (only or with the enterprise as a whole) or the fixed base, may be taxed in that other State. For the determination of the amount of these gains, the rules provided for in article 7, paragraphs 2 and 3, apply.

However, the proceeds from the disposal of movable property referred to in article 22, paragraph 3, may be taxed only in the Contracting State to which, according to that article, the right to tax them belongs.

§ 3. Profits arising from the disposal of any other property, including holdings — which are not part of the assets of a permanent establishment referred to in paragraph 2(1) — in a share company may be taxed only in the State in which the transferor resides,

§1. Income obtained by a resident of a Contracting State through the provision of professional services or the pursuit of other independent activities of a similar nature may only be taxed in that State unless that resident normally has a fixed basis in the other Contracting State for the pursuit of his or her activity. In the latter case, such income may be taxed in the other State, but only to the extent that it precedes attributing it to the fixed base.

§2. The term "professional services" includes, in particular, independent scientific, literary, artistic, educational or teaching activities, as well as independent activities of doctors, lawyers, engineers, architects, dentists and accountants.

§1. Without prejudice to the provisions of Articles 16, 18, 19, 20 and 21, salaries, salaries and similar remuneration obtained by a resident of a Contracting State on account of employment may only be subject to taxation in that State, unless the employment is exercised in the other Contracting State. If employment is exercised in the latter State the remuneration derived therefrom may be subject to taxation in that State,

§2. Notwithstanding paragraph 1 and without prejudice to the reference contained therein, remuneration obtained by a resident of a Contracting State on account of employment, not covered by paragraph 3, exercised in the other Contracting State, may only be taxed in the former State if:

(a) are paid for the activity carried out in the other State for a period or periods — including normal work breaks — not exceeding a total of one hundred and eighty-three days during the calendar year;

(b) remuneration is paid for or on behalf of a person who is not a resident of the other State; and

(c) Remuneration is not borne by a permanent establishment or a fixed basis which the person for whom work is performed has in the other State.

§ 3. By way of derogation from paragraph 1, remunerations earned on account of employment on board a ship or aircraft in international traffic are deemed to be obtained by reason of an activity carried out in the Contracting State where the company's effective headquarters are located and may be subject to taxation in that State.

§1. Participations, attendance allowances and similar remunerations which a resident of a Contracting State obtains as a member of a Board of Directors or Supervisory Board or of another similar body of a company for shares resident of the other Contracting State may be subject to taxation in that other State. This provision also applies to the remuneration of a co-mandatory partner of a share company.

§2. The remuneration which the persons referred to in paragraph 1 receive in any other way shall be governed, according to its nature, by the provisions of article 14 or article 15.

Notwithstanding the provisions of Articles 14 and 15, the rents obtained by the professionals of the spectacle, such as theatre, cinema, radio or television artists and musicians, as well as by sportsmen, for their personal activities in this regard, may be subject to taxation in the Contracting State in which they act.

Without prejudice to the provisions of Article 19, pensions and similar remuneration paid, in consideration of previous employment, to a resident of a Contracting State, may only be taxed in that State.

§1. Remuneration, including pensions, paid by a Contracting State, one of its political subdivisions or local entities, either directly or from funds constituted by them, to a natural person in consideration of services provided to that State or to one of its political subdivisions or local entities, may be subject to taxation only in that State.

This provision does not apply where the beneficiary of these income possesses the nationality of the other Contracting State without, at the same time, possessing the nationality of the first State.

§2. Paragraph 1 does not apply to remuneration or pensions paid in consideration of services rendered, in a commercial or industrial activity carried out by a Contracting State or by a political subdivision or local entity of that State.

1. The remuneration of teachers and other members of teaching staff, residents of a Contracting State, who temporarily remain for a period not exceeding two years in the other Contracting State to teach or engage in scientific research at a university or other officially recognized scientific teaching or research institution, may be subject to taxation only in the first State.

§2. The amounts which a student or a trainees, who is or has previously been a resident of a Contracting State and who is in the other Contracting State for the sole purpose of continuing his studies or completing his training, receive to cover his costs of maintenance, studies or training, shall not be subject to taxation in the latter State, provided that such amounts come from sources outside that State.

The income of a resident of a Contracting State, subject to taxation in that State and which is of a nature or comes from sources not mentioned in the previous articles of this Convention, may only be taxed in that State.

§1. Property constituted by immovable property, as defined in article 6, paragraph 2, may be taxed in the Contracting State in which the property is located.

§2. Without prejudice to paragraph 3, assets consisting of movable property forming part of the assets of a permanent establishment of an undertaking, or movable property belonging to a fixed base used for the pursuit of a professional activity, may be taxed in the Contracting State in which the permanent establishment or fixed base is situated.

§ 3. Ships and aircraft operated in international traffic, as well as movable property affected by their operation, may be subject to taxation only in the Contracting State in which the place of effective management of the undertaking is situated.

§4. All other assets of a resident of a Contracting State — including shareholdings — may only be taxed in that State.

§1. Where a resident of a Contracting State obtains income not covered by paragraphs 3 and 4 below, which, in accordance with the provisions of the Convention, may be taxed in the other Contracting State, the former State shall exempt such income; but in order to calculate the tax corresponding to the remaining income of that resident, it may apply the tax rate which would correspond without such exemption.

§2. Where, under the law of one Contracting State, losses suffered by a permanent establishment of an enterprise of that Contracting State, situated in the other State, have actually been deducted from the profits of the enterprise for taxation in the first State, the exemption provided for in paragraph 1 does not apply in that State, to the profits of that establishment corresponding to the other tax periods, to the extent that such profits have also been exempted in the other State for compensation for such losses.

§ 3. Without prejudice to the following paragraph 4, where a resident of a Contracting State obtains income which, in accordance with Article 10, paragraph 2; Article 11, paragraphs 2 and 7, or Article 12, paragraphs 2 and 6, may be subject to taxation in the other Contracting State, the first State shall grant, from the tax due on the said income by that resident, a deduction calculated on the amount of such income forming part of the taxable base of that resident and the rate of which shall not be lower than that of the tax levied on the said income in the other Contracting State, in accordance with Article 10, paragraph 2; Article 11, paragraph 2, or Article 12, paragraph 2, as the case may be.

For residents of Spain, the provision of this paragraph applies to both general and account taxes.

§4. Where a company resident of a Contracting State owns shares or shares in a company resident of the other Contracting State, the dividends paid to it by the latter company are subject in the first State for the purpose of applying the tax referred to in Article 2, paragraph 3, 1.^or (b) or 2(b), as the case may be, under the same scheme as dividends paid by a company resident of the former State.

§ 5. For the purposes of applying paragraph 3 above, interest on a reduction in the Spanish tax, pursuant to Article 1° of the Decree-Law of 19 October 1961, which grants reductions on certain taxes applicable to loans issued by Spanish companies and loans granted to them by foreign financial institutions to finance new investments, is considered to have paid the tax provided for in Article 11, paragraph 2.

§1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxes or obligations relating thereto which are not or are more burdensome than those to which nationals of that Contracting State who are or may be subject under the same conditions are subject.

§2. The term ‘national’ means:

(a) all natural persons possessing the nationality of a Contracting State;

(b) all legal persons, companies of persons and associations established under the laws in force in a Contracting State.

§ 3. Stateless persons shall not be subject in a Contracting State to any tax or obligation relating thereto, which is not required or more burdensome than those to which nationals of that State are or may be subject, who are in the same conditions.

§4. A permanent establishment which an undertaking of one Contracting State has in the other Contracting State shall not be subject to taxation in that State in a less favourable manner than undertakings of the latter State carrying out the same activities.

This provision does not oblige a Contracting State to grant to residents of the other Contracting State the personal deductions, allowances and tax reductions it grants to its own residents in view of their marital status or family burdens.

This provision does not prevent profits attributable to the permanent establishment available in a Contracting State to a company resident of the other Contracting State or to a group of persons having its effective head office in the latter State from being subject to taxation in the first State at the rate fixed by its national law, provided that the latter does not exceed the maximum rate applicable to all or part of the profits of companies resident in the former State,

§ 5. Without prejudice to the provisions of Article 9, interest, royalties and any other expenses paid by an undertaking of one Contracting State to a resident of the other Contracting State may be deducted, for the purpose of determining the taxable profits of that Company, under the same conditions as if they had been paid to a resident of the former Contracting State.

Similarly, debts owed by an undertaking of a Contracting State to a resident other than the Contracting State may be deducted for the purpose of determining the taxable assets of that undertaking under the same conditions as if they had been incurred with a resident of the former State.

§ 6. Undertakings of a Contracting State whose capital is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State shall not be subject in the Contracting State referred to above to any tax or obligation relating thereto which is not or is more burdensome than those to which the like undertakings of the first Contracting State are or may be subject.

§ 7. The term ‘tax’ in this Article covers all taxes, whatever their nature or name.

§1. Where a resident of a Contracting State considers that the measures taken by one or both Contracting States imply or may entail for him a double taxation that is not in conformity with this Convention, irrespective of the remedies provided for by the national law of those States, he may address a written and reasoned request to the competent authority of the Contracting State of which he is resident requesting a review of this taxation. The application must be made within two years of notification or the requirement at the source of the second charge.

§2. The competent authority referred to in paragraph 1, if the claim appears to it to be well founded and if it is not in a position to adopt a satisfactory solution, shall make every effort to resolve the matter by amicable agreement with the competent authority of the other Contracting State, in order to avoid double taxation not in conformity with this Convention.

§ 3. The competent authorities of the Contracting States shall endeavour to resolve difficulties or to dispel doubts arising from the application of this Convention by amicable agreement.

§4. The competent authorities of the Contracting States shall agree on the administrative measures necessary for the implementation of the provisions of the Convention and in particular on the supporting documents to be submitted by the residents of each State in order to enjoy in the other State the tax exemptions or reductions provided for in this Convention.

§1. The competent authorities of the Contracting States shall exchange the information necessary for the application of this Convention and of the internal laws of the Contracting States relating to taxes covered by this Convention, to the extent that the taxation provided for therein is in accordance with the Convention.

The information thus exchanged shall be kept secret and may not be disclosed, other than to the taxpayer or his representative, other than to the persons or authorities responsible for the settlement or collection of the taxes covered by this Agreement and for the settlement of claims and remedies relating thereto.

§2. In no case shall the provisions of paragraph 1 oblige a Contracting State:

(a) take administrative measures contrary to its legislation or administrative practice or those of the other Contracting State;

(b) to provide information which cannot be obtained on the basis of their own legislation or normal administrative practice or that of the other Contracting State;

(c) to transmit information revealing a commercial, industrial or professional secret or a commercial procedure, or information whose communication is contrary to public policy.

27 Other provisions.

§1. The provisions of this Convention do not affect the tax privileges enjoyed by members of a diplomatic or consular mission, in accordance with the general principles of international law or under provisions of special agreements.

§2. With regard to Belgian resident companies, the provisions of the Convention do not prevent them from being subject to taxation under Belgian law in the event of the purchase of their own shares or shares or division of share capital.

§ 3. The Ministers of Finance of the Contracting States or their delegates for this purpose may agree directly between themselves to fulfil the purposes provided for in the Convention.

§1. This Convention shall be ratified and the instruments of ratification shall be exchanged in Madrid as soon as possible.

§2. The Convention shall enter into force on the fifteenth day following the exchange of instruments of ratification, and its provisions shall apply:

1.^or To source taxes on income paid or payable from 1 January of the year, in the course of which instruments of ratification are exchanged.

2. Other income taxes for tax periods ending on 31 December of the year in which instruments of ratification are exchanged.

3. However, paragraphs 1 and 2 above, in respect of article 8, to profits earned in closed accounting periods as from 31 December 1960.

This Convention shall remain in force indefinitely; but each Contracting State may denounce it to the other Contracting State in writing and through diplomatic channels until 30 June, including any calendar year, from the fifth year of the exchange of instruments of ratification, If it is withdrawn before 1 July of that year, the Convention shall last apply:

1. To taxes accruing from the source on income paid or payable at the latest on 31 December of that year.

2. To other taxes required on income corresponding to tax periods ending at the latest on 30 December of the calendar year following that year.

In faith, the Plenipotentiaries of States have signed and sealed this Convention.

Done at Brussels, 24 September 1970, in duplicate, in the Spanish, French and Dutch languages, attesting to the three texts as well.

At the time of the signing of the Convention to Prevent Double Taxation and to regulate certain matters relating to income and property taxes, concluded today between Spain and Belgium, the undersigned Plenipotentiaries have agreed on the following provisions, which form an integral part of this Convention:

(1) Ad Article 2, § 3, 2.^or:

‘The right of establishment’ in Spanish is included in sub-paragraph (f) of this provision.

(2) Ad Article 3, § 1st, 1st:

(a) In the event that the Belgian legal provisions are taken to this effect, the term ‘Belgium’ also covers the seabed and the subsoil of the North Sea, adjacent to the Belgian territorial sea, on which Belgium shall exercise sovereign rights of exploration and exploitation; in this case, the delimitation of this region shall be notified to Spain by diplomatic means, as soon as the agreements with the United Kingdom, France and Holland allow it to be established.

(b) The term ‘Spain’ also includes any region adjacent to the territorial sea of Spain, which is or may subsequently be considered under the legislation of Spain concerning the continental shelf, as a region within whose limits the rights of Spain relating to the seabed and the subsoil of the underwater regions and their natural resources may be exercised.

(3) Ad Article 4, first paragraph:

The term ‘resident of a Contracting State’ also means companies — other than shares companies — which have chosen to subject their profits to the tax of natural persons.

(4) Ad Article 11, § 4:

Spain retains the right to tax on capital income tax, interest covered by sub-paragraph (b) of this provision, which is paid to the permanent establishment held by a Belgian company in Spain.

(5) Ad Article 23, § 4:

(a) With regard to dividends paid to a company resident in Belgium by a company resident in Spain, this provision does not preclude the enforceability of the transferable tax under Belgian law.

(b) With regard to dividends paid to a company resident in Spain by a company resident in Belgium, this provision does not preclude the enforceability of Spanish capital income tax, it being understood that double taxation is avoided in accordance with Article 23, § 3.

Therefore, having seen and examined the 29 articles that make up that Convention and its Additional Protocol, having heard the Committee on Treaties of the Spanish Courts, in compliance with article 14 of its Organic Law, I come to approve and ratify as provided for, as I hereby approve and ratify it, promising to comply with it, observe it and ensure that it is implemented and observed in a timely manner in all its parts, for the purpose of its further validation and firmness, Command to issue this instrument of ratification, signed by Me, duly sealed and endorsed by the undersigned Minister of Foreign Affairs.

Given in Madrid on 28 May, one thousand nine hundred and seventy-one,

FRANCE FRANCE

The Minister for Foreign Affairs,

GREGORIO LOPEZ BRAVO DE CASTRO

The Exchange of Instruments of Ratification took place in Madrid on 23 September 1971.

This Convention shall enter into force on 9 October 1972, in accordance with Article 28.

What is made public for general knowledge.

[ignore]Madrid, October 13, 1972.-The Technical General Secretary of the Ministry of Foreign Affairs, Enrique Thomas de Carranza.