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Double Tax Treaty Romania – Belgium

Double Tax Treaty Romania – Belgium

The double tax treaty between Romania and Belgium settles the taxation rules for the income obtained by the economic agents in one of the two countries. Belgium applies the exemption with progression method which implies lower taxation amounts. Our Romanian accountants are ready to offer counsel regarding the double taxation treaty and all its related legal implications. 

Advantages of the double tax treaty Romania – Belgium

One of the principal purposes for signing a double taxation treaty between Romania and Belgium is to avoid or reduce the effects of over-taxation. Encouraging strong economic relation and development in both countries is another important aim of the convention.

The treaty is as well a legal instrument for the tax authorities to exchange and access more easily the information regarding taxation. Moreover, it simplifies the tax collector work by centralizing the relevant legal aspects on the tax amount and tax payment procedure.

The convention prevents fraud and tax evasion providing therefore a more stable political and economic climate.

Feel free to employ the available accountancy in Bucharest for appropriate guiding in financial matters and for the preparation and record of your company accounts.

Provisions of the double tax treaty Romania – Belgium

The tax convention between Romania and Belgium settles the situations in which double taxation might happen and provides the rules to be followed in the application of the tax regulations. The beneficiaries of the convention are the residents of the two countries or the legal formations with a permanent establishment (Établissement stable).

The treaty states that Belgium applies the exemption with progression method which ultimately means that the oversea income is not taxed. The company must declare nevertheless the profits in order to help calculate the average tax rate. If this rate surpasses the exempt income, the economic agent will obtain a tax return for it.

The income subject to the double tax treaty might refer to business revenues, income from real estate, transportation, dividends, interests, capital gains and other types of income.

For extensive financial information feel free to contact our Romanian accountants who are ready to provide all need support regarding the double taxation provisions in Belgium and Romania.