UK-Belgium double tax treaty – New protocol published

Written by Nicolas de Limbourg 8 January 2013


On 28 December 2012 the protocol amending the existing double tax treaty between Belgium and the United Kingdom was published in the Official Gazette. The protocol was signed by both countries on 24 June 2009 and came into force on 24 December 2012. It is applicable as from 1 January 2013.

The protocol amends the treaty provisions dealing with the following types of income: interest, royalties, employment income, directors’ fees and pensions.

For example, with respect to pension income which is paid or attributed for the first time as from 1 January 2013, the protocol now attributes the taxation rights to the country of source as opposed to the country of residence (which was the competent State under the old rule).

In addition, Belgium now has the right to levy local taxes on income earned by a Belgian resident taxpayer, even if it concerns UK-sourced income that is exempted from Belgian federal income tax. Furthermore, the provisions on exchange of information have been updated as well.