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San Marino - Belgium Tax Treaty (as amended by 2009 protocol) — Orbitax Tax Hub

Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 24

Methods for Elimination of Double Taxation

(1) In the case of San Marino, double taxation shall be avoided as follows:

  • (a) Where a resident of San Marino derives income which, in accordance with the provisions of this Convention, may be taxed in Belgium, San Marino shall, subject to the provisions of sub-paragraphs (b) and (c) exempt such income from tax but may, nevertheless, in calculating the amount of tax on the remaining income of such resident, apply the same tax rate which would apply if the income in question were not exempt.
  • (b) Where a resident of San Marino derives income which, in accordance with the provisions of Articles 10 and 11, may be taxed in Belgium, San Marino shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in Belgium. Such deduction shall not, however, exceed that part of the income tax, as computed before the deduction is given, which is attributable to the income arising in Belgium.
  • (c) Notwithstanding the provisions of sub-paragraph (b), where a company which is a resident of San Marino has held at least 25 percent of the capital of a company which is a resident of Belgium paying dividends for at least 12 months prior to the decision to distribute the dividends, San Marino shall exempt from tax the dividends paid to the company which is a resident of San Marino by the company which is a resident of Belgium.

(2) In the case of Belgium, double taxation shall be avoided as follows:

  • (a) Where a resident of Belgium derives income, not being dividends, interest or royalties, which may be taxed in San Marino in accordance with the provisions of this Convention, and which are taxed there, Belgium shall exempt such income from tax but may, in calculating the amount of tax on the remaining income of that resident, apply the rate of tax which would have been applicable if such income had not been exempted. However, in the case of a company which is a resident of Belgium, where the San Marino tax is less than 15 percent of the net amount of the income referred to in this provision, Belgium shall not exempt that income, but reduce to a third the Belgian tax which is proportionally relating to that income, calculated as if that income were income from Belgian sources.
  • (b) Notwithstanding the provisions of sub-paragraph (a) of this paragraph and any other provision of this Convention, Belgium shall, for the determination of the additional taxes established by Belgian municipalities and conurbations, take into account the earned income (revenus professionnels-beroepsinkomsten) that is exempted from tax in Belgium in accordance with sub-paragraph (a) of this paragraph. These additional taxes shall be calculated on the tax which would be payable in Belgium if the earned income in question had been derived from Belgian sources.
  • (c) Dividends derived by a company which is a resident of Belgium from a company which is a resident of San Marino shall be exempt from the corporate income tax in Belgium under the conditions and within the limits provided for in Belgian law.
  • (d) Subject to the provisions of Belgian law regarding the deduction from Belgian tax of taxes paid abroad, where a resident of Belgium derives items of his aggregate income for Belgian tax purposes which are interest or royalties, the San Marino tax levied on that income shall be allowed as a credit against Belgian tax relating to such income.
  • (e) Where, in accordance with Belgian law, losses incurred by an enterprise carried on by a resident of Belgium in a permanent establishment situated in San Marino have been effectively deducted from the profits of that enterprise for its taxation in Belgium, the exemption provided for in sub-paragraph (a) shall not apply in Belgium to the profits of other taxable periods attributable to that establishment to the extent that those profits have also been exempted from tax in San Marino by reason of compensation for the said losses.