Belgium’s Ministry of Finance has released the synthesised text of the tax treaty with South Africa providing clarifications regarding the impact of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The text is based on the reservations and notifications provided by each country to the Depositary.
The MLI is applicable to the 1995 Belgium-South Africa tax treaty.
The provisions of the MLI applicable to the Convention do not take effect on the same dates as the original provisions of the Convention. Each of the provisions of the MLI could take effect on different dates, depending on the types of taxes involved (taxes withheld at source or other taxes levied) and on the choices made by the Kingdom of Belgium and the Republic of South Africa in their MLI positions.
The date of the deposit of instruments of ratification, acceptance, or approval is 26 June 2019 for the Kingdom of Belgium and 30 September 2022 for the Republic of South Africa.
The Entry into force of the MLI is 1 October 2019 for the Kingdom of Belgium and 1 January 2023 for the Republic of South Africa.
Entry into effect
- In accordance with paragraph 1 of Article 35 of the MLI, the provisions of the MLI, other than the provisions of Article 16, have effect with respect to the Convention;
- With respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving rise to such taxes occurs on or after 1 January, 2023;
- With respect to all other taxes, for taxes levied with respect to taxable periods beginning on or after 1 July, 2023.
