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MFN Clause for Royalties Triggered in Tax Treaty between Belgium and Lithuania

17 July 2019

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Treaty Development

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Belgium-Lithuania

The Belgian and Lithuania authorities have reportedly confirmed that the MFN clause for royalties contained in the final protocol to the 1998 tax treaty between the two countries has been triggered by the 2017 Japan-Lithuania tax treaty, which is effective from 1 January 2019. As a result, the withholding tax rate for royalties under the 1998 Belgium-Lithuanian tax treaty is 0% with effect from 1 January 2019.