Belgium Issues Draft Circular on Tax Consequences of Asset Transfers between a Head Office and PE under Tax Treaty Article 7 (Business Profits)

On 5 September 2016, the Belgian Ministry of Finance released a draft circular on the interpretation of Article 7 (Business Profits) of the Belgian Model Tax Treaty. The circular covers the fundamental differences between Article 7 of the OECD Model Convention as it reads before and after 2010. In particular, the circular examines the tax consequences of the transfer of an asset between the head office and the permanent establishment of a business, or vice versa, including several examples an…