Once implemented, the convention will boost mutual business and investment activities of corporations and individuals in the Contracting States. The newly available ability of the tax authorities of the Contracting States to request information of interest, as well as mutual assistance in collecting tax arrears, will result in additional tax revenues to the budgets of the Contracting States.
Reference
The proposal to sign the Convention between the Russian Federation and the Kingdom of Belgium on Avoiding Double Taxation and Preventing Income and Capital Gains Tax Evasion, and a Protocol hereto (hereinafter referred to as the “draft convention”) was prepared by the Ministry of Finance.
In preparing the draft convention, the Russian side was based on the standard agreement between the Russian Federation and foreign countries on avoiding double income and property taxation approved by Resolution No 84 of the Government of the Russian Federation On Signing International Treaties on Avoiding Double Taxation and Preventing Income and Property Tax Evasion (hereinafter referred to as the “standard agreement”) of 24 February 2010. In addition, the Contracting States were guided by standard agreements recommended by the Organisation for Economic Cooperation and Development and the UN.
The draft convention stipulates the taxation procedures regarding the incomes and capital gains of corporations and individuals who have a place of residence, permanent residence, or place of management in the Russian Federation or the Kingdom of Belgium, which in general corresponds to standard provisions.
The draft convention guarantees the prevention of tax discrimination, regulates the procedure for reviewing taxpayers’ complaints and requests and information exchanges between the competent authorities of the Contracting States.
Once implemented, the convention will boost mutual business and investment activities of corporations and individuals in the Contracting States. The newly available ability of the tax authorities of the Contracting States to request information of interest, as well as mutual assistance in collecting tax arrears, will result in additional tax revenues to the budgets of the Contracting States.
The document was reviewed and approved at a meeting of the Government on 5 February 2014.