As things stand, the number of signatories to the LML is 87, out of 68 at the time of signing on June 7, 2017. Belgium first notified 98 bilateral tax treaties in the form of a covered tax treaty (with the exception of the Netherlands, Japan, Germany, Norway and Switzerland). Given the reciprocity required to amend an existing contract, 56 of the Belgian tax treaties should be amended by the MLI. Belgium has expressed its desire to submit almost all of its double taxation conventions to the MLI. It did not enter into its contracts with Germany, Norway and Switzerland, as it preferred to negotiate them on a bilateral basis. The treaty with Japan was also not included as on 19 January this year a new contract came into force that meets the minimum BEPS standard. At the signing of the MLI on 7 June 2017, Belgium presented a list of 98 contracts with other jurisdictions that it intended to qualify as CtA. In its ratification instrument, the total number of agreements listed has increased to 99. Belgium added tax agreements with Botswana and the Netherlands and repealed the tax agreement with Taiwan. Tax treaties that have not been listed as CTA, such as tax treaties with Germany, Japan, Norway and Switzerland, have been or must be renegotiated on a bilateral basis in order to align with the OECD`s Action Plan on Basic Erosion and Profit Transfer (BEPS). Provided that the condition of reciprocity of the ratification of the guaranteed tax treaties is met, the MLI will not be applicable to Belgium until 1 January 2020 or after 1 January 2020 for withholding tax and, for other taxes, from 1 March 2020 (subject to the filing of the ratification instrument by the Ministry of Foreign Affairs next month).
For a contract to fall under the ACCORD, both signatories must have the following information: (i) membership of the IML; (ii) that they have added to their list of TzA; (iii) have submitted their ratification instruments to the OECD. In analyzing the extent to which the LML may affect a given situation, careful consideration should be given to the provisions of the LML and the rationale for the LMI adopted simultaneously on November 24, 2016.2 The explanatory statement is intended to clarify the approach adopted in the IELI and to clarify the impact of each provision on the CPUs covered by the MLI. It contains, among other things, descriptions of the types of contractual provisions to be covered and how they should be amended. . A reduced tax rate at the source of dividends through a tax treaty only applies if, during a 365-day retroactive trial period, a minimum property threshold required by the tax contract is reached. The Netherlands has not communicated the following bilateral tax treaties to the OECD: Belgium, Brazil, Bulgaria, Denmark, Ireland, Kosovo, Kyrgyzstan, Poland, Spain, Switzerland, Taiwan and Ukraine. . . . States Parties may provide for certain derogations from these provisions.