U.S.-Belgian treaty cuts double taxation

Latest News

Save

E-mail

U.S.-Belgian treaty cuts double taxation

February 13, 2008

Similar Stories | Topics

STORIES

AWDC names finalists in diamond jewelry contest

U.S. government acts quickly on Kimberley Process critique

Dalumi preps for U.S. expansion

Jewelry price inflation continues to moderate

Couture 2009 to intro new VIP retail jewelers

TOPICS

Washington, D.C.—A new treaty between the United States and Belgium designed to avoid double taxation is the first in a series of measures the Belgian government is taking to draw more foreign investment, the Embassy of Belgium has announced.

The treaty, which went into effect on Dec. 28, 2007, makes Feb. 1 the effective date for withholding taxes.

"The new treaty constitutes a 'win-win' agreement for businesses in the United States and Belgium with transatlantic operations," said a press release from the Embassy of Belgium. "It reduces double taxation of income, eliminates barriers to trade and investment, and facilitates cross-border capital movement."

The treaty's chief provisions include: a zero percent withholding tax on dividend payments from a U.S. company in Belgium to its U.S. parent company provided the U.S. entity in Belgium owns at least 10 percent of the Belgian company; and a zero percent withholding tax on interest, which makes direct loans between U.S.- and Belgian-affiliated companies more attractive and makes it easier for companies in Belgium to finance U.S. affiliates.

With bilateral trade between the two countries is valued at more than $35 billion annually, Belgium is the 18th trading partner for the United States, ahead of India, Australia, Russia and Spain, the release says.

Belgian exports of precious stones and metals, which include diamonds, totaled $18 billion in 2006, and ranked as the seventh largest export category for the country.

Some 1,200 U.S. companies have already invested more than $52 billion in Belgium, while Belgian companies have invested more than $12 billion in the United States, employing some 130,000 people.

Since 2006, Belgium has allowed a deemed interest deduction for equity invested in a Belgian company or branch, thereby decreasing the effective tax burden for investors. A recently enacted patent income deduction reduces the tax rate for patent income to a maximum of 6.8 percent, representing a rate that is lower than those available in most other European countries, according to the release. This deduction significantly improves the prospects for patent development and for holding companies in Belgium in terms of licensing patents to U.S. affiliates.

Save

E-mail

More Brand Profiles

Movado watch fetes 50 years of pirouettes, solos

A night out at the New York City Ballet or Jazz at Lincoln Center is bound to be memorable, but Movado hopes to help make it more so with a new version of its iconic "Museum" watch. Read More

Raymond Weil forms U.S. distribution company

More News

More Like This

AWDC names finalists in diamond jewelry contest

December 19, 2008 | National Jeweler Network

U.S. government acts quickly on Kimberley Process critique

October 02, 2006 | National Jeweler Network

Dalumi preps for U.S. expansion

February 12, 2008 | National Jeweler Network

Jewelry price inflation continues to moderate

May 20, 2009 | National Jeweler Network

Couture 2009 to intro new VIP retail jewelers

May 20, 2009 | National Jeweler Network

TOPICS

Design Portfolio

BROWSE

Video

Retailer Toolbar

America's Best Jewelers
Join the ONLY Social Network for Jewelry Retailers. Get access to expert content, peer best practices, and more.
Start networking today.

Newsletters
Topic-specific newsletters that deliver the latest news on jewelry, diamonds, wholesale operations and high-volume buying directly to your in-box.

ReaderConnect
Supplier information presented with every article, bringing you related, actionable content on every topic.

Yellow Pages
A comprehensive listing of associations, organizations, suppliers and services for the jewelry industry.

Classifieds
A comprehensive listing of job postings, product offerings and other materials for sale for the jewelry industry.

CustomerConnect
The most sophisticated suite of marketing services available for jewelry retailers, from Internet tools to data marketing.