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10 JUIN 2014. - An Act to grant the following international acts: 1° the Convention between the Kingdom of Belgium and the Kingdom of Bahrain to avoid double taxation and to prevent tax evasion in respect of taxes on income and on capital, done at Manama on 4 November 2007, and 2° the Protocol, done at Manama on 23 November 2009, amending the Convention between the Kingdom of Belgium and the Kingdom of Bahrain to avoid double taxation and to prevent tax evasion

PHILIPPE, King of the Belgians,
To all, present and to come, Hi.
The Chambers adopted and We sanction the following:
Article 1^er. This Act regulates a matter referred to in Article 77 of the Constitution.
Art. 2. The following international acts will come out of their full effect:
1° the Convention between the Kingdom of Belgium and the Kingdom of Bahrain to avoid double taxation and to prevent tax evasion in respect of taxes on income and on fortune, made in Manama on 4 November 2007 (hereinafter "the Convention");
2° the Protocol, done at Manama on 23 November 2009, amending the Convention between the Kingdom of Belgium and the Kingdom of Bahrain to avoid double taxation and to prevent tax evasion in respect of taxes on income and on fortune, made at Manama on 4 November 2007 (hereinafter "the Protocol").
Art. 3. § 1^er. For the application by Belgium of Article 28 of the Convention, in particular, it is necessary to consider, unless proven otherwise, that the principal objective or one of the principal objectives of any person involved in the creation or assignment of a right or a receivable, under which income of receivables or royalties of Belgian source are paid to a corporation that is a resident of the Kingdom of Bahrain, is to obtain the benefits of Articles 11
- one or more Belgian residents directly or indirectly hold more than 50% of the capital of that company;
- the nominal or actual rate of Bahraini tax to which the receivables or royalties paid are subject in the head of that corporation is less than 15%;
- the said company does not actively engage in an effective industrial or commercial activity in the Kingdom of Bahrain or, if it actively engages in such activity, the exemption or reduction of tax requested in Belgium is not related to income from receivables or royalties from receivables or rights whose creation or assignment is required by that activity.
§ 2. A company is not considered to be actively engaged in the Kingdom of Bahrain in an effective industrial or commercial activity when it is:
- an investment company;
- a financing company (other than a bank);
- a company whose activity consists solely or principally of the provision of financial services to companies that form a group directly or indirectly with the provider company;
- a cash company; or
- a company that holds a portfolio investment or copyright, a patent, a trademark or trade mark, a drawing, a model, a plan, a formula or a secret process representing a total of more than one-third of its assets when this detention is not part of the active exercise of an effective industrial or commercial activity.
Promulgation of this law, let us order that it be clothed with the seal of the State and published by the Belgian Monitor.
Given in Brussels on 10 June 2014.
PHILIPPE
By the King:
Deputy Prime Minister and Minister for Foreign Affairs,
D. REYNDERS
Minister of Finance,
K. GEENS
Seal of the state seal:
The Minister of Justice,
Ms. A. TURTELBOOM
____
Notes
(1) Senate (www.senate.be):
Documents: 5-2732 - Annales du Sénat: 27/03/2014
House of Representatives (www.lachambre.be):
Documents: 53-3508 - Full report: 23/04/2014
(2) See the Decree of the Flemish Community/Flemish Region of 7 June 2013 (Belgian Monitor of 9 July 2013), the Decree of the French Community of 11 April 2014 (Belgian Monitor of 26 May 2014), the Decree of the German-speaking Community of 24 November 2014 (Belgian Monitor of 18 December 2014, Ed. 2), the Decree of the Walloon Region of 28 April 2014 (Belgian Currency of 27 May 2014)
(3) Entry into force 11 December 2014.

CONVENTION
ENTER
BELGIUM ROYAUME
AND
THE ROYAUME OF BAHREN
TENDANT TO EVITER THE DOUBLE IMPOSITION
FIRST EVASION
IN MATIERE D'IMPOTS SUR LE REVENU ET SUR LA FORTUNE
THE GOVERNMENT OF THE BELGIUM ROYAUME
AND
THE GOVERNMENT OF THE BAHREN ROYAUME
DECISIONS to conclude a Convention to Avoid Double Taxation and to Prevent Tax Fraud and Evasion in Income and Capital Tax,
AGAINST the following:
CHAPTER I OF THE CONVENTION
Article 1
Target persons
This Convention applies to persons who are residents of a Contracting State or both Contracting States.
Article 2
Taxes targeted
1. This Convention applies to taxes on income and on property collected on behalf of a Contracting State or its political subdivisions or local authorities, irrespective of the system of perception.
2. The taxes on total income, total property, or income or property, including taxes on earnings from the alienation of movable or real estate property, taxes on the total amount of wages paid by companies, as well as taxes on surplus-values, are considered income and property taxes.
3. Current taxes to which the Convention applies include:
(a) in respect of Bahrain: income tax due under the Emir Decree (Amiri Decree) No. 22 of 1979
(hereinafter referred to as the Bahraini tax)
(b) with regard to Belgium:
(i) the tax of natural persons;
(ii) corporate tax;
(iii) corporation tax;
(iv) non-residents' tax on Belgian source income;
(v) the complementary contribution of crisis;
including pre-payments and additions to such taxes and pre-payments,
(hereinafter referred to as "Belgian tax").
4. The Convention also applies to taxes of an identical or similar nature that would be established after the date of signature of the Convention and that would be in addition to or replace existing taxes. The competent authorities of the Contracting States shall communicate the significant changes to their tax laws.
CHAPTER II DEFINITIONS
Article 3
General definitions
1. For the purposes of this Convention, unless the context requires a different interpretation:
(a) (i) the term "Bahrain" means the territory of the Kingdom of Bahrain and the maritime areas, the seabed and the subsoil on which Bahrain exercises, in accordance with international law, sovereign rights and a jurisdiction; and
(ii) the term "Belgium" means the Kingdom of Belgium; employed in a geographical sense, it designates the territory of the Kingdom of Belgium, including the territorial sea and the maritime areas and the airspace on which, in accordance with international law, the Kingdom of Belgium exercises sovereign rights or jurisdiction;
(b) the terms "a Contracting State" and "the other Contracting State" mean, in the context, Belgium or Bahrain;
(c) the term "person" includes individuals, societies and other groups of persons;
(d) the term "society" means any corporation or entity that is considered to be a legal entity in the Contracting State of which it is a resident;
(e) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise whose effective steering seat is located in a Contracting State, except where the vessel or aircraft is operated only between points in the other Contracting State;
(f) the term "competent authority" means:
(i) in respect of Bahrain, the Minister of Finance or his authorized representative; and
(ii) in respect of Belgium, the Minister of Finance or its authorized representative;
(g) the term "national", in respect of a Contracting State, means:
(i) any natural person who has the nationality or citizenship of that Contracting State; and
(ii) any legal person, partnership or association incorporated in accordance with the legislation in force in that Contracting State;
(h) the terms "company of a Contracting State" and "company of the other Contracting State" shall, respectively, designate a business operated by a resident of a Contracting State and a business operated by a resident of the other Contracting State.
2. For the application of the Convention at any time by a Contracting State, any term or expression that is not defined therein shall, unless the context requires a different interpretation, the meaning assigned to it at that time by that State in respect of the taxes to which the Convention applies, the meaning assigned to that term or expression by the tax law of that State in respect of the meaning assigned to it by the other branches of the law of that State.
Article 4
Resident
1. For the purposes of this Convention, the term "resident of a Contracting State" means:
(a) in the case of Bahrain, a natural person who has Bahraini nationality and who stays in Bahrain for a period or periods of a total duration of at least 183 days during the fiscal year under review, a corporation or any other legal person incorporated in Bahrain or who has its headquarters, and also applies to the Kingdom of Bahrain as well as to all its political subdivisions or local authorities; and
(b) in the case of Belgium, any person who, under Belgian law, is subject to tax in Belgium on the basis of his or her domicile, residence, management seat, place of incorporation or any other criterion of a similar nature and also applies to the Kingdom of Belgium and to all its political subdivisions or local authorities. However, this term does not include persons who are subject to tax in Belgium only for income from sources located in that State or for the wealth that is located there.
2. Where, according to the provisions of paragraph 1, a natural person is a resident of the two Contracting States, his or her situation shall be settled as follows:
(a) that person is considered to be a resident only of the State where the person has a permanent home; if it has a permanent home in both states, it is considered to be a resident only of the State with which its personal and economic ties are the narrowest (centre of vital interests);
(b) if the State where that person has the centre of its vital interests cannot be determined, or if it does not have a permanent home in any of the States, it is considered to be a resident only of the State where it normally resides;
(c) if the person normally stays in both States or if he or she does not normally stay in any of them, he or she is considered to be a resident only of the State of which he or she is a national;
(d) if the person possesses the nationality of the two States or has no nationality of any of them, the competent authorities of the Contracting States shall decide the question by mutual agreement.
3. Where, according to the provisions of paragraph 1, a person other than a natural person is a resident of the two Contracting States, it is considered to be a resident only of the State where its effective management seat is located.
Article 5
Stable establishment
1. For the purposes of this Convention, the term "stable establishment" means a fixed business facility through which a company operates all or part of its business.
2. The term "stable establishment" includes:
(a) a steering seat,
(b) a branch,
(c) an office,
(d) a factory,
(e) a workshop,
(f) a mine, oil or gas well, a career or any other place of extraction of natural resources,
(g) a refinery,
(h) a point of sale, and
(i) a warehouse, in the case of a person who makes storage facilities available to other persons.
3. A construction or construction site is a permanent establishment only if its duration exceeds twelve months.
4. Notwithstanding the preceding provisions of this Article, it is considered that there is no "stable establishment" if:
(a) the use of facilities for the sole purpose of storage, exposure or delivery of goods owned by the company;
(b) goods belonging to the undertaking are stored for storage, exposure or delivery purposes only;
(c) goods belonging to the enterprise are stored for the sole purpose of processing by another company;
(d) a fixed business facility is used for the sole purpose of purchasing goods or collecting information for the company;
(e) a fixed business facility is used for the sole purpose of carrying out any other preparatory or auxiliary activity for the enterprise;
(f) a fixed business facility shall be used only for the purpose of the cumulative year of activities referred to in subparagraphs (a) to (e), provided that the overall activity of the fixed business facility resulting from this accumulated business shall be preparatory or auxiliary.
5. Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent enjoying an independent status to which paragraph 6 applies - acts on behalf of a business and has powers in a Contracting State that it normally exercises to enter into contracts on behalf of the enterprise, that undertaking is deemed to have a permanent establishment in that State for all activities that that that person exercises for the enterprise, unless
6. A business is not considered to have a permanent establishment in a Contracting State solely because it operates in it through a broker, a general commissioner or any other agent with an independent status, provided that such persons act within the ordinary framework of their business.
7. The fact that a corporation that is a resident of a Contracting State controls or is controlled by a corporation that is a resident of the other Contracting State or that operates therein (either through a permanent establishment or not) is not sufficient in itself to make any of these companies a permanent establishment of the other.
CHAPTER III IMPOSITION OF REVENUS
Article 6
Real estate income
1. The income that a resident of a Contracting State derives from real property (including income from farms or forestry) located in the other Contracting State is taxable in that other State.
2. The term "real property" has the meaning assigned to it by the law of the Contracting State in which the property is located. The term includes, in any case, accessories, dead or alive livestock of farms and forests, the rights to which the provisions of private law apply in respect of land ownership, the usufruct of real property and the rights to variable or fixed payments for the exploitation or concession of the exploitation of mineral deposits, sources and other natural resources; ships, ships and aircraft are not considered real property.
3. The provisions of paragraph 1 shall apply to income derived from direct exploitation or enjoyment, lease or charter, as well as any other form of exploitation of real property.
4. The provisions of paragraphs 1 and 3 also apply to income from real property of a business as well as to income from real property used in the exercise of an independent profession.
Article 7
Business benefits
1. The profits of an enterprise of a Contracting State shall be taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located therein. If the company operates in such a way, the profits of the company are taxable in the other State but only to the extent that they are attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3, where a business of a Contracting State carries on business in the other Contracting State through a permanent establishment located therein, it shall be charged, in each Contracting State, to that permanent establishment the profits that it could have realized if it had constituted a separate undertaking carrying out identical or similar activities under identical or similar conditions and acting independently.
3. In order to determine the benefits of a permanent establishment, deductions are made of the expenses incurred for the purposes of this permanent establishment, including the executive expenses and general administrative expenses so exposed, either in the State where the permanent establishment is located or elsewhere.
4. If it is customary in a Contracting State to determine the profits attributable to a permanent establishment on the basis of a distribution of the total profits of the enterprise between its various parties, no provision in paragraph 2 shall prevent that Contracting State from determining the taxable profits according to the distribution in use; However, the method of distribution adopted must be such that the result obtained is consistent with the principles contained in this article.
5. No profit is charged to a permanent establishment because it simply purchased goods for the company.
6. For the purposes of the preceding paragraphs, the benefits to be charged to the permanent establishment are determined annually on the same basis, unless there are valid and sufficient grounds to proceed otherwise.
7. Where profits include income elements treated separately in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.
Article 8
Maritime and air navigation
1. The profits derived from the operation, in international traffic, of ships or aircraft shall be taxable only in the Contracting State where the effective management seat of the enterprise is located.
2. For the purposes of this section, benefits derived from the operation, in international traffic, of ships or aircraft include:
(a) profits from the rental of vessels or aircraft serving international transport, armed and equipped;
(b) profits from the bare hull rental of ships or aircraft if this rental activity is an incidental activity for the international transport company;
(c) profits from the rental of containers if this rental activity is an incidental activity for the international transport company.
3. If the effective management seat of a marine navigation company is on board a vessel, that seat shall be considered to be located in the Contracting State where the vessel's port of attachment is located, or if the vessel is not carrying the vessel, in the Contracting State of which the vessel operator is a resident.
4. The provisions of paragraph 1 also apply to benefits derived from participation in a pool, a joint operation or an international operating organization.
Article 9
Associated companies
1. When
(a) a business of a Contracting State directly or indirectly participates in the direction, control or capital of a business of the other Contracting State, or
(b) the same persons directly or indirectly participate in the direction, control or capital of a business of a Contracting State and a business of the other Contracting State,
and that, in both cases, both companies are, in their commercial or financial relations, bound by agreed or imposed conditions, that differ from those that would be agreed between independent companies, the profits that, without these conditions, would have been realized by one of the companies but could not be in fact because of these conditions, may be included in the profits of that undertaking and imposed accordingly.
2. When a Contracting State includes in the profits of a company of that State - and therefore imposes - profits on which a company of the other Contracting State has been imposed in that other State, and that the profits thus included are profits that would have been realized by the enterprise of the first State if the terms agreed between the two enterprises had been those that would have been agreed between independent enterprises, the other State shall make the adjustment that it considers appropriate of the tax To determine this adjustment, the other provisions of this Convention shall be taken into account and, if necessary, the competent authorities of the Contracting States shall consult.
Article 10
Dividends
1. Dividends paid by a corporation that is a resident of a Contracting State to a resident of the other Contracting State shall be taxable in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the corporation paying the dividends is a resident, and according to the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the dividends.
Notwithstanding the preceding provisions of this paragraph, dividends shall not be taxable in the Contracting State of which the corporation that pays the dividends is a resident if the beneficial owner of the dividends is a corporation that is a resident of the other Contracting State and that, at the time of the payment of the dividends, holds, for a period of not less than twelve months, shares that represent directly at least 10 per cent of the capital of the corporation that pays the dividends
This subsection does not affect the corporation's taxation of profits that are used to pay dividends.
3. The term "dividends" used in this article refers to income derived from shares, shares or benefits, shares of mine, share of founder or other share of beneficiaries with the exception of receivables, as well as income subject to the same tax regime as income from shares by the tax legislation of the State whose debiting society is a resident.
4. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the dividends, a resident of a Contracting State, exercises in the other Contracting State whose dividend paying company is a resident, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the dividend-generating interest is effectively connected to it. In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
5. Where a corporation that is a resident of a Contracting State derives from the profits or income of the other Contracting State, that other State may not collect any tax on the dividends paid by the corporation, except to the extent that such dividends are paid to a resident of that other State or to the extent that the dividend-generating interest is effectively connected to a permanent establishment or to a fixed base located in that other State, or prelever any
6. Notwithstanding the provisions of paragraph 2, dividends from a Contracting State and paid to the Government of the other Contracting State or to a local community, public law body or agency of that other State, or to the National Bank of that other State or to any corporation wholly owned by that other State, are exempted from tax in the first State.
Article 11
Claims income
1. Revenues of receivables from a Contracting State and paid to a resident of the other Contracting State shall be taxable in that other State.
2. However, these incomes are also taxable in the Contracting State in which they arise and according to the law of that State, but if the beneficial owner of the income is a resident of the other Contracting State, the tax so charged shall not exceed 5 per cent of the gross amount of the income.
3. Notwithstanding the provisions of paragraph 2, the income of receivables shall be exempt from tax in the Contracting State from which it arises when it is:
(a) commercial receivables income (including those represented by commercial effects) resulting from the payment of goods, goods or services by companies in the future;
(b) income paid by a loan or credit granted, guaranteed or insured under a regime organized by a Contracting State or a political subdivision or local authority to promote exports;
(c) income from receivables or loans of any kind (not represented by bearer securities) paid by a business to a banking business;
(d) income from deposits of money made from a banking business;
(e) income paid to the other Contracting State, to one of its political subdivisions or local authorities, to a public law body or to an agency of that other State, to the National Bank of that other State or to any society wholly owned by that other State.
4. The terms "receiving income" or "income" used in this section refer to incomes of receivables of any kind, whether or not accompanied by mortgage guarantees or an interest clause in the debtor's profits, including revenues from public funds and borrowing obligations, including premiums and lots attached to these securities. However, these terms do not include, within the meaning of this section, penalties for late payment or income treated as dividends under section 10, paragraph 3.
5. The provisions of paragraphs 1, 2 and 3 shall not apply where the beneficial owner of the income, a resident of a Contracting State, exercises in the other Contracting State in which the income arises, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the income-generating debt is effectively connected to it. In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
6. Revenues of receivables shall be deemed to arise from a Contracting State when the debtor is a resident of that State. However, where the debtor of income, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment, or a fixed base, for which the debt giving rise to the payment of income has been contracted and which bears the burden of such income, these shall be deemed to come from the State where the permanent establishment or fixed base is located.
7. Where, because of special relationships between the debtor and the beneficial owner or between the debtor and the other person maintain with third persons, the amount of income, taking into account the debt for which they are paid, exceeds the amount agreed upon by the debtor and the beneficial owner in the absence of such relations, the provisions of this Article shall apply only to the latter amount. In such cases, the surplus portion of the payments shall be taxable in accordance with the laws of each Contracting State and taking into account the other provisions of this Convention.
Article 12
Claims
1. Royalties from a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State, if that resident is the beneficial owner of the property.
2. The term " royalties" used in this article means the remuneration of any kind paid for the use or concession of the use of a copyright on a literary, artistic or scientific work, including software, film films and films or tapes registered for radio or television, a patent, a trademark or trade, a drawing or a model, a plan or a plan
3. The provisions of paragraph 1 shall not apply where the beneficial owner of the royalties, a resident of a Contracting State, exercises in the other Contracting State in which the royalties arise, either an industrial or commercial activity through a permanent establishment located therein or an independent occupation by means of a fixed base located therein, and that the right or property that generates royalties is effectively connected to it. In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
4. The royalties shall be deemed to arise from a Contracting State when the debtor is a resident of that State. However, where the debtor of royalties, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment, or a fixed base, for which the contract giving rise to the payment of royalties has been concluded and which bears the charge of such royalties, these shall be deemed to be from the State where the permanent establishment, or the fixed base, is located.
5. Where, because of special relations between the debtor and the beneficial owner or between the debtor and the other person maintain with third persons, the amount of royalties, taking into account the benefit for which they are paid, exceeds the amount agreed upon by the debtor and the beneficial owner in the absence of such relations, the provisions of this section apply only to the latter amount. In such cases, the surplus portion of the payments shall be taxable in accordance with the laws of each Contracting State and taking into account the other provisions of this Convention.
Article 13
Capital gains
1. The gains derived by a resident of a Contracting State from the alienation of real property referred to in Article 6, and situated in the other Contracting State, shall be taxable in that other State.
2. The gains from the alienation of movable property that are part of the assets of a permanent establishment that a business of a Contracting State has in the other Contracting State, or of movable property that belong to a fixed base of which a resident of a Contracting State disposes in the other Contracting State for the exercise of an independent profession, including such gains from the alienation of that permanent establishment (ully or with
3. Gains derived from the alienation of ships or aircraft operated in international traffic, or movable property assigned to the operation of such ships or aircraft, shall be taxable only in the Contracting State where the effective management seat of the enterprise is located.
4. Gains derived from the alienation of any property other than those referred to in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the assignor is a resident.
Article 14
Independent occupations
1. The income derived by a resident of a Contracting State from a liberal profession or other activities of an independent character shall be taxable only in that State, unless that resident has in the other Contracting State a fixed basis for the exercise of his or her activities in an ordinary manner. If it has such a fixed base, income may be taxed in the other State but only to the extent that it is attributable to that fixed base.
2. The term "liberal profession" includes independent scientific, literary, artistic, educational or educational activities, as well as independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15
Employment income
1. Subject to the provisions of Articles 16, 18, and 19, wages, salaries and other similar remuneration that a resident of a Contracting State receives for an employee employment shall be taxable only in that State, unless employment is exercised in the other Contracting State. If the employment is exercised, the remuneration received as such is taxable in that other State.
2. Notwithstanding the provisions of paragraph 1, remuneration that a resident of a Contracting State receives in respect of an employee employment exercised in the other Contracting State shall be taxable only in the first State if:
(a) the beneficiary stays in the other State for a period or periods not exceeding a total of 183 days during any period of twelve months beginning or ending during the tax period under review, and
(b) compensation shall be paid by an employer, or on behalf of an employer, who is not a resident of the other State, and
(c) the pay charge is not borne by a permanent establishment or a fixed base that the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article, remuneration received for an employee employed on board a ship or aircraft operated in international traffic shall be taxed in the Contracting State where the effective management seat of the enterprise is located.
Article 16
Corporate managers
1. The fortieth, attendance and other similar remuneration that a resident of a Contracting State receives as a member of the board of directors or of a similar body of a corporation that is a resident of the other Contracting State may be taxed in that other State.
The foregoing provision also applies to remuneration received because of the performance of functions which, under the legislation of the Contracting State whose company is a resident, are treated as functions of a nature similar to those exercised by a person referred to in that provision.
2. The remuneration that a person referred to in paragraph 1 shall receive from a corporation that is a resident of a Contracting State because of the exercise of a day-to-day activity of direction or technical, commercial or financial nature, and the remuneration that a resident of a Contracting State derives from his or her daily activity as a member of a corporation other than a corporation by shares, which is a resident of a Contracting State, shall be taxable in accordance with the provisions
Article 17
Artists and athletes
1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State from his or her personal activities in the other Contracting State as an artist of the spectacle, such as a theatre, cinema, radio or television artist, or a musician, or as a sportsman, may be taxed in that other State.
2. Where the income of activities that an entertainer or a sportsperson exercises personally and in this capacity is attributed not to the artist or to the athlete himself but to another person, such income shall be taxable, notwithstanding the provisions of Articles 7, 14 and 15, in the Contracting State where the activities of the artist or athlete are carried out.
Article 18
Pensions
Subject to the provisions of Article 19, paragraph 2, pensions and other similar remuneration paid to a resident of a Contracting State for an earlier job shall be taxable only in that State. However, such pensions and other similar remuneration are also taxable in the other Contracting State if they arise from that State. This provision also applies to pensions and other similar remuneration paid in accordance with the social legislation of a Contracting State or a general regime organized by that State to supplement the benefits provided by its social legislation.
Article 19
Public functions
1. (a) Salaries, salaries and other similar remuneration paid by a Contracting State or any of its political subdivisions or local authorities to a natural person, for services rendered to that State or subdivision or community, shall be taxable only in that State.
(b) However, such wages, salaries and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and if the natural person is a resident of that State which:
(i) has the nationality of that State, or
(ii) did not become a resident of that State for the sole purpose of rendering the services.
2. (a) Notwithstanding the provisions of paragraph 1, pensions or other similar remuneration paid by a Contracting State or any of its political subdivisions or local authorities, either directly or by debiting from the funds they have constituted, to a natural person, for services rendered to that State or to that subdivision or community, shall be taxable only in that State.
(b) However, such pensions or other similar remuneration shall be taxable only in the other Contracting State if the natural person is a resident of that State and has its nationality.
3. The provisions of Articles 15, 16, 17 and 18 apply to wages, salaries, pensions and other similar remuneration paid for services rendered in an industrial or commercial activity carried out by a Contracting State or one of its political subdivisions or local authorities.
Rule 20
Students
The sums that a student or trainee who is, or who was immediately before going to a Contracting State, a resident of the other Contracting State and who resides in the first State for the sole purpose of pursuing his or her studies or training shall be paid to cover his or her maintenance, education or training expenses shall not be taxable in that State, provided that they arise from sources outside that State.
Article 21
Other income
1. The income elements of a resident of a Contracting State, wherever they arise, which are not dealt with in the preceding articles of this Convention shall be taxable only in that State.
2. The provisions of paragraph 1 shall not apply to income other than income derived from real property as defined in Article 6, paragraph 2, where the beneficiary of such income, a resident of a Contracting State, carries on in the other Contracting State, either an industrial or commercial activity through a permanent establishment located therein, or an independent occupation by means of a fixed base located therein, and that the right or property therein shall, In this case, the provisions of Article 7 or Article 14, as applicable, shall apply.
3. Notwithstanding the provisions of paragraphs 1 and 2, the income elements of a resident of a Contracting State that are not dealt with in the preceding articles of the Convention and that come from the other Contracting State may be taxed in that other State if such elements are not imposed in the first State.
CHAPTER IV IMPOSITION OF THE FORTUNE
Article 22
Fortune
1. The property constituted by real property referred to in Article 6, which is owned by a resident of a Contracting State and situated in the other Contracting State, is taxable in that other State.
2. The property constituted by movable property that is part of the asset of a permanent establishment that a business of a Contracting State has in the other Contracting State, or by movable property that is owned by a fixed base of which a resident of a Contracting State has in the other Contracting State for the exercise of an independent profession, is taxable in that other State.
3. Assets made by ships and aircraft operated in international traffic, as well as by movable assets assigned to the operation of such ships or aircraft, shall be taxable only in the Contracting State where the effective management seat of the enterprise is located.
4. All other assets of a resident of a Contracting State shall be taxable only in that State.
CHAPTER V
METHODS FOR ELIMINING IMPOSITION DOUBLES
Article 23
1. With respect to Bahrain, double taxation is avoided as follows:
(a) where a Bahraini resident receives income that, in accordance with the provisions of this Convention, is taxable in Belgium, Bahrain grants tax on the income of that resident a deduction of an amount equal to the income tax paid in Belgium. However, this deduction may not exceed the portion of the income tax calculated before deduction, which corresponds to taxable income in Belgium; and
(b) where, in accordance with any provision of this Convention, the income received by a Bahraini resident is tax-free in Bahrain, Bahrain may, however, in calculating the amount of tax on the remaining income of that resident, take into account the exempted income.
2. With regard to Belgium, double taxation is avoided as follows:
(a) where a resident of Belgium receives income, other than dividends, interest or royalties, or has assets, which are taxable in Bahrain in accordance with the provisions of this Convention, and which are taxed therein, Belgium exempts such income or assets from tax, but it may, in calculating the amount of its taxes on the rest of the income or fortune of that resident, apply the same rate as if the income was exempted or
Notwithstanding the provisions of this subparagraph and any other provision of this Convention, Belgium shall take into account, for the determination of additional taxes established by Belgian municipalities and towns, the exempted professional income in Belgium in accordance with this subparagraph. These additional taxes are calculated on the tax that would be due in Belgium if the professional income in question were derived from Belgian sources.
(b) The dividends that a corporation that is a resident of Belgium receives from a corporation that is a resident of Bahrain are exempted from corporate tax in Belgium, under the conditions and limits provided for in Belgian legislation.
(c) Subject to the provisions of Belgian law relating to the imputation on Belgian tax of taxes paid abroad, where a Belgian resident receives income elements that are included in his overall income subject to Belgian tax and which consist of interest or royalties, Bahraini tax collected on these revenues is charged on the Belgian tax related to that income.
(d) Where, in accordance with Belgian law, losses incurred by a company operated by a Belgian resident in a permanent establishment located in Bahrain have been effectively deducted from the profits of that company for its taxation in Belgium, the exemption provided for in (a) does not apply in Belgium to the profits of other taxable periods that are attributable to that establishment, to the extent that these profits have also been exempted from tax in Bahrain due to their compensation with
CHAPTER VI SPECIAL PROVISIONS
Article 24
Non-discrimination
1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or obligation relating thereto, which is other or heavier than those to which nationals of that other Contracting State are or may be subject to the same situation, particularly in respect of the residence. This provision also applies, notwithstanding the provisions of Article 1, to persons who are not residents of a Contracting State or both Contracting States.
2. Stateless persons who are residents of a Contracting State shall not be subject in either Contracting State to any taxation or related obligation, which is other or heavier than those to which nationals of the State concerned are or may be subject in the same situation, particularly in respect of the residence.
3. The imposition of a permanent establishment that a business of a Contracting State has in the other Contracting State is not established in that other State in a less favourable manner than the taxation of the enterprises of that other State that exercise the same activity. This provision shall not be construed as requiring a Contracting State to grant personal deductions, deductions and tax reductions to the residents of the other Contracting State on the basis of the situation or family expenses that it grants to its own residents.
4. Unless the provisions of Article 9, paragraph 1, Article 11, paragraph 7 or Article 12, paragraph 5, are applicable, the income of receivables, royalties and other expenses paid by a business of a Contracting State to a resident of the other Contracting State shall be deductible, for the determination of the taxable profits of that undertaking, under the same conditions as if they had been paid to a resident of the first State. Similarly, the debts of an enterprise of a Contracting State to a resident of the other Contracting State shall be deductible, for the determination of the taxable fortune of that undertaking, on the same basis as if they had been contracted to a resident of the first Contracting State.
5. The undertakings of a Contracting State, whose capital is wholly or partly, directly or indirectly, held or controlled by one or more residents of the other Contracting State, shall not be subject in the first State to any taxation or obligation relating thereto, which is other or heavier than those to which the other similar enterprises of the first State are or may be subject.
6. The provisions of this section shall apply, notwithstanding the provisions of section 2, to taxes of any kind or denomination.
Rule 25
Friendly procedure
1. Where a person considers that the measures taken by a Contracting State or by the two Contracting States shall result in or result in taxation not in accordance with the provisions of this Convention, the person may, independently of the remedies provided by the domestic law of those States, submit his case to the competent authority of the Contracting State of which he is a resident or, if his case falls under Article 24, paragraph 1, to that of the Contracting State of which he or she is a national. The case shall be submitted within three years after the first notification of the measure that results in taxation not in conformity with the provisions of the Convention.
2. The competent authority shall endeavour, if the claim appears to it to be justified and if it is not itself in a position to provide a satisfactory solution, to resolve the case by amicable agreement with the competent authority of the other Contracting State, with a view to avoiding taxation not in conformity with the Convention. The agreement shall be applied irrespective of the time limits provided by the domestic law of the Contracting States.
3. The competent authorities of the Contracting States shall endeavour, by mutual agreement, to resolve the difficulties or to dispel the doubts to which the interpretation or application of the Convention may take place.
4. The competent authorities of the Contracting States agree on the administrative measures necessary for the implementation of the provisions of the Convention and, in particular, the justifications to be provided by the residents of each Contracting State to benefit in the other State from the exemptions or tax reductions provided for in the Convention.
5. The competent authorities of the Contracting States shall communicate directly with each other for the purposes of the Convention.
Rule 26
Exchange of information
1. The competent authorities of the Contracting States shall exchange the information likely to be relevant to the application of the provisions of this Convention or for the administration or application of the domestic law relating to the taxation of any kind or denomination perceived on behalf of the Contracting States, to the extent that the taxation it provides is not contrary to the Convention. The exchange of information is not restricted by sections 1 and 2.
2. The information received under paragraph 1 by a Contracting State shall be kept secret in the same manner as the information obtained pursuant to the domestic legislation of that State and shall be communicated only to the persons or authorities (including the courts and administrative bodies) concerned by the establishment or collection of the taxes referred to in paragraph 1, by the procedures or prosecutions relating to such taxes, by the decisions on remedies relating to such taxes, or by the control of the above. These individuals or authorities only use this information for these purposes. They may disclose this information in public court hearings or judgments. Notwithstanding the foregoing, the information received by a Contracting State may be used for other purposes where this is the result of the laws of both States and where the competent authority of the State providing the information authorizes such use.
3. In no case shall the provisions of paragraphs 1 and 2 be construed as imposing on a Contracting State the obligation:
(a) take administrative measures derogating from its legislation, administrative practice or those of the other Contracting State;
(b) provide information that could not be obtained on the basis of its legislation or in the course of its normal administrative practice or those of the other Contracting State;
(c) provide information that would reveal a commercial, industrial, professional or commercial secret or information that would be contrary to public order;
(d) provide information that would not be held by its authorities or in possession or control of persons present within the limits of its territorial jurisdiction.
4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use the powers available to it to obtain the information requested, even if it does not need it for its own tax purposes. The obligation contained in the previous sentence shall be subject to the limitations provided for in paragraph 3 unless such limitations are likely to prevent a Contracting State from communicating information solely because they do not have an interest in it in the national context.
Rule 27
Recovery assistance
The Contracting States, within the limits of the means available to their tax administrations, lend each other assistance and assistance in order to notify and recover the taxes referred to in Article 2 as well as any additional, increments, penalizations for late payment, fees and fines without a criminal character. The competent authorities of the Contracting States shall mutually agree, and within the limits of their tax systems, the terms and conditions for the application of this Article.
Rule 28
Limitation of benefits
The provisions of sections 10, 11 and 12 shall not apply if the principal objective or any of the principal objectives of any person involved in the creation or assignment of a right or receivable under which dividends, receivables or royalties are paid is to take advantage of these articles by means of such creation or assignment.
Rule 29
Members of diplomatic missions and consular posts
1. The provisions of this Convention shall not affect the tax privileges enjoyed by members of diplomatic missions or consular posts under either the general rules of international law or the provisions of special agreements.
2. For the purposes of the Convention, members of diplomatic missions or consular posts of a Contracting State accredited in the other Contracting State or in a third State, who have the nationality of the accrediting State, shall be deemed to be residents of that State if they are subject to the same obligations in respect of taxes on income and on capital, as residents of that State.
3. The Convention does not apply to international organizations, their organs or officials, or to persons who are members of diplomatic missions or consular posts of a third State, where they are located in the territory of a Contracting State and are not treated as residents in one or the other Contracting State in respect of income or property taxes.
CHAPTER VII
FINAL PROVISIONS
Rule 30
Entry into force
1. Each Contracting State shall notify the other Contracting State of the fulfilment of the procedures required by its legislation for the entry into force of this Convention. The Convention shall enter into force on the date of receipt of the second notification.
2. The provisions of the Convention shall apply:
(a) taxes due to the source on income awarded or paid from 1^er January of the year immediately following that of the entry into force of the Convention;
(b) other taxes on taxable period income starting from 1^er January of the year immediately following that of the entry into force of the Convention;
(c) tax on property on assets existing from 1^er January of the year immediately following that of the entry into force of the Convention.
Rule 31
Denunciation
This Convention shall remain in force until it has been denounced by a Contracting State. Each Contracting State may, until 30 June inclusive of any calendar year from the fifth year following that of the entry into force, denounce it, in writing and through diplomatic channels, to the other Contracting State. In case of denunciation before 1^er July of such a year, the Convention shall cease to apply:
(a) taxes due to the source on income awarded or paid from 1^er January of the year immediately following the denunciation;
(b) other taxes on taxable period income starting from 1^er January of the year immediately following the denunciation;
(c) tax on property on assets existing from 1^er January of the year immediately following the denunciation.
IN WITNESS WHEREOF, the undersigned, to that duly authorized by their respective Governments, have signed this Convention.
DONE in Manama, on 4 November 2007, in duplicate, in Arabic, Dutch, French and English, the four texts being equally authentic. The English language text will prevail in the event of a discrepancy between the texts.
PROTOCOLE
At the time of the signing of the Convention between the Kingdom of Belgium and the Kingdom of Bahrain to avoid double taxation and to prevent tax evasion in respect of income and property taxes, the undersigned agreed on the following provisions which form an integral part of the Convention.
1. Ad article 3, paragraph 2:
In interpreting the provisions of the Convention which are identical or similar to those of the OECD Model Tax Convention, the tax administrations of the Contracting States shall follow the general principles of the comments of the Model Convention, provided that the Contracting States did not include in these comments comments comments comments expressing disagreement with these principles and to the extent that the Contracting States did not agree to a divergent interpretation in particular circumstances.
2. Ad article 4:
(a) With respect to Bahrain, the term "resident of a Contracting State" also applies in the event that no income tax is collected on the dependants of Bahrain's natural persons or resident societies. If, in the future, such a tax on natural persons or corporations was in effect, the definition would read as follows:
"in the case of Bahrain, any person who, under Bahraini legislation, is subject to tax in Bahrain on the basis of his or her home, residence, management seat, place of incorporation or any other similar criteria and also applies to the Kingdom of Bahrain as well as to all its political subdivisions or local authorities. However, this term does not include persons who are subject to tax in Bahrain only for income from sources in that State or for the wealth that is located there. »
(b) With respect to both Bahrain and Belgium, the term "resident of a Contracting State" also refers to an entity, background, institution or organization, established in accordance with Bahrain or Belgium's legislation as the case may be, whose purpose is limited to the granting of retirement pensions, even if the entity, background, institution or organization in question is exempted from tax in the State in which it is established.
3. Ad article 11, paragraph 3:
With respect to Belgium, it is understood that the provision of (b) applies in any case:
- the income of a debt or credit for which financial support is granted after the advice of the Export Financial Support Committee (" Finexpo");
- income from a debt or credit granted by the Association for the Coordination of the Medium-term Financing of Belgian Exports (" Creditexport"); and
- the income of a debt or credit provided by the National Office of the Ducroire.
4. Ad article 15, paragraph 1:
It is understood that wage employment is exercised in a Contracting State where the activity under which wages, salaries and other similar remuneration are paid is actually exercised in that State. The activity is actually exercised in that State when the employee is physically present in that State to carry out this activity.
IN WITNESS WHEREOF, the undersigned, duly authorized by their respective Governments, have signed this Protocol.
DONE in Manama., on 4 November 2007, in double copy, in Arabic, Dutch, French and English, the four texts being equally authentic. The English language text will prevail in the event of a discrepancy between the texts.

PROTOCOLE
MODIFIANT
THE CONVENTION
ENTER
BELGIUM ROYAUME
AND
THE ROYAUME OF BAHREN
TENDANT TO EVITER THE DOUBLE IMPOSITION
FIRST EVASION
IN MATIERE D'IMPOTS SUR LE REVENU ET SUR LA FORTUNE
THE GOVERNMENT OF THE BELGIUM ROYAUME
and
THE GOVERNMENT OF THE BAHREN ROYA,
DESIReux to amend the Convention between the Kingdom of Belgium and the Kingdom of Bahrain to avoid double taxation and to prevent tax evasion in respect of income and property taxes, signed in Manama on 4 November 2007 (hereinafter referred to as "the Convention"),
AGAINST the following:
Article 1
The text of Article 26 of the Convention is deleted and replaced by the following provisions:
“1. The competent authorities of the Contracting States shall exchange the information likely to be relevant to the application of the provisions of this Convention or for the administration or application of the domestic law relating to the taxation of any kind or denominations perceived by or on behalf of the Contracting States to the extent that the taxation it provides is not contrary to the Convention. The exchange of information is not restricted by sections 1 and 2.
2. The information received under paragraph 1 by a Contracting State shall be kept secret in the same manner as the information obtained pursuant to the domestic legislation of that State and shall be communicated only to the persons or authorities (including the courts and administrative bodies) concerned by the establishment or collection of the taxes referred to in paragraph 1, by the procedures or prosecutions relating to such taxes, by the decisions on remedies relating to such taxes, or by the control of the above. These individuals or authorities only use this information for these purposes. They may disclose this information in public court hearings or judgments. Notwithstanding the foregoing, the information received by a Contracting State may be used for other purposes where this is the result of the laws of both States and where the competent authority of the State providing the information authorizes such use.
3. In no case shall the provisions of paragraphs 1 and 2 be construed as imposing on a Contracting State the obligation:
(a) take administrative measures derogating from its legislation and administrative practice or those of the other Contracting State;
(b) provide information that could not be obtained on the basis of its legislation or in the course of its normal administrative practice or those of the other Contracting State;
(c) provide information that would reveal a commercial, industrial, professional or commercial secret or information that would be contrary to public order.
4. If information is requested by a Contracting State in accordance with the provisions of this Article, the other Contracting State shall use the powers available to it to obtain the information requested, even if it does not need it for its own tax purposes. The obligation contained in the preceding sentence shall be subject to the limitations provided for in paragraph 3 of this article unless these limitations are likely to prevent a Contracting State from communicating information solely because it does not have an interest in it in the national context.
5. The provisions of paragraph 3 of this article shall not, in any case, be construed as permitting a Contracting State to refuse to disclose information solely because such information is held by a bank, other financial institution, trust, foundation, agent or person acting as an agent or trustee or because such information relates to the property rights of a person. In order to obtain this information, the tax administration of the requested Contracting State has the power to request the communication of information and to conduct investigations and hearings notwithstanding any contrary provision of its domestic tax legislation. »
Article 2
Each Contracting State shall notify, through diplomatic channels, the other Contracting State of the fulfilment of the procedures required by its legislation for the entry into force of this Protocol. The Protocol shall enter into force on the date of the second notification and shall apply:
(a) taxes due to the source on income awarded or paid from 1^er January of the year immediately following that of the entry into force of the Protocol;
(b) other taxes on taxable period income starting from 1^er January of the year immediately following that of the entry into force of the Protocol;
(c) in respect of other taxes collected by or on behalf of the Contracting States, any other tax due to taxable events occurring from 1^er January of the year immediately following that of the entry into force of the Protocol.
Article 3
This Protocol, which is an integral part of the Convention, will remain in force as long as the Convention remains in force and will apply as long as the Convention itself is applicable.
IN WITNESS WHEREOF, the undersigned to that duly authorized by their respective Governments, have signed this Protocol.
DATED at Manama on 23 November 2009, in duplicate, in Arabic, Dutch, French and English, all texts being equally authentic. The English text will prevail if the texts differ.