Announcement 2010-52

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Internal Revenue Bulletin:

2010-36 September 7, 2010

Announcement 2010-52

Belgium Research Fellowship MAP Agreement



The following is a copy of the Competent Authority Agreement entered into on July 14, 2010, by the competent authorities of the United States of America and Belgium with respect to the taxation of fellowship payments made to certain researchers under the U.S.-Belgium income tax treaty and protocol.

The text of the Competent Authority Agreement is as follows:

COMPETENT AUTHORITY AGREEMENT
The competent authorities

of the United States and Belgium hereby enter into the following agreement (the “Agreement”) regarding the application of the Convention Between the Government of the United States of America and the Government of the Kingdom of Belgium for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, and accompanying Protocol, signed at Brussels on November 27, 2006 (the “Treaty”), to fellowship payments to certain researchers. The Agreement is entered into under paragraph 3 of Article 24 (Mutual Agreement Procedure).

It is understood

that a fellowship payment to an individual who is a resident of one Contracting State (i.e., the home country) for the purpose of carrying on research at an educational or research institution in the other Contracting State (i.e., the host country) (a “Fellowship Payment”) may or may not be characterized as compensation, depending on the facts and circumstances.

It is agreed that

if a Fellowship Payment is properly characterized as compensation under the domestic law of the host country, the Fellowship Payment is covered by paragraph 2 of Article 19 (Students, Trainees, Teachers and Researchers) of the Treaty and may be exempt from host country income tax for a period not exceeding two years if all applicable requirements are satisfied.

It also is agreed

that if a Fellowship Payment is not characterized as compensation under the domestic law of the host country, the Fellowship Payment is covered by Article 20 (Other Income) of the Treaty and may be exempt from host country income tax if all applicable requirements are satisfied.

It is further agreed

that paragraph 1(a)(iii) of Article 21(Students and Trainees) of the prior U.S.-Belgium income tax treaty, signed at Brussels on July 9, 1970, as amended by a Protocol signed at Washington on December 31, 1987, applied to a Fellowship Payment without regard to whether or not the Fellowship Payment was characterized as compensation.

Michael Danilack United States

Competent Authority

Sandra KnaepenBelgian Competent Authority
Date: Date:
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