New Belgium - Democratic Republic of Congo tax treaty in force

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On 10 February 2012, the income tax treaty (Treaty) between Belgium and the Democratic Republic of Congo (DRC) was published in the Belgian Official Gazette.

Belgium is the first country to have an income tax treaty in force with the DRC.
The treaty came into force on 24 December 2011, and is applicable to:

  • Withholding taxes applicable to income earned or payable on or after 1 January 2012; and
  • Other taxes, levied or established on income related to the taxable periods beginning on or after 1 January 2012.

The Treaty generally follows the OECD Model Convention (2005) and the protocol contains a most-favored nation clause, as a result of which the withholding tax on dividends, interest, and royalties will be automatically lowered when the DRC signs a treaty with another EU Member State providing for a lower withholding tax rate or a withholding tax exemption.

To read our alert on this new treaty, click here