Guidance by country: Belgium: interest
Article 11(2) of the agreement provides that Belgian tax on interest arising in Belgium to a United Kingdom resident will be reduced to:
- 0% on interest paid on any loan granted or credit extended from one enterprise to another enterprise;
- 0% on interest paid to a pension scheme established in the United Kingdom;
- 0% on interest paid to the United Kingdom Government, a political subdivision thereof, a local authority or any public entity;
- 10% in all other cases.
The EC Directive on Interest and Royalties (2003/49EC) (see INTM400010 to INTM400110) provides for the abolition of source state taxation on interest and royalty payments made between associated companies in different Member States.