The Treasury Department said a new income tax treaty and protocol with Belgium has gone into effect, along with three protocols amending existing tax treaties with Germany, Denmark and Finland.
The Belgium treaty and protocol eliminate source-country withholding taxes on interest payments and certain dividends. They also improve information exchange between the U.S. and Belgium, modernize the treaty's limitation-of-benefits provision, and mandate arbitration of certain cases that cannot be resolved by the authorities within a specified period.
The protocols with Germany, Denmark and Finland eliminate source-country withholding taxes on certain dividends and modernize the treaty's limitation-of-benefits provision.
The protocol with Germany also contains a mandatory arbitration provision, while the protocol with Finland eliminates source-country withholding taxes on royalty payments.
