Entry into force of the new Tax Convention between Japan and the Kingdom of Belgium on January 19, 2019

  1. On January 19, 2019, the Convention between Japan and the Kingdom of Belgium for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance (signed on October 12, 2016) has entered into force and will have effect for taxes levied on or after January 1, next year.

  2. The new Convention replaces the Convention between Japan and the Kingdom of Belgium for the Avoidance of Double Taxation with respect to Taxes on Income, which entered into force in 1970.
    It expands the extent of reduction of taxation on investment income (dividends, interest, royalties) by the source country, through lowering the maximum tax rates and easing the exemption conditions, thus reduces tax burden of companies operating in the other country.

  3. For Japanese companies already established in Belgium or Japanese companies which plan to invest in Belgium, taxes on their investment income in Belgium will be further reduced and the conditions of taxable income will be clearer. Belgian companies already operating in Japan or planning to invest in Japan will benefit from the same conditions.
    It is expected that these new measures will make Japan and Belgium more attractive foreign investment destinations for companies in both countries.

  4. For further details about the new Convention, please refer to the related pages of the Ministry of Foreign Affairs of Japan below;
    https://www.mofa.go.jp/press/release/press4e_002283.html
    https://www.mofa.go.jp/press/release/press4e_001301.html