On December 28, 2007, the Convention Between the United States and the Kingdom of Belgium for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion With Respect to Taxes on Income (the 2006 Treaty) and the Protocol amending the 2006 Treaty (Protocol) entered into force.
The 2006 Treaty modified certain provisions of the prior income tax treaty between the United States and Belgium. Among other things, the 2006 Treaty revises Article 24 (Mutual Agreement Procedure) of the prior treaty to provide for mandatory arbitration of certain cases in the mutual agreement procedure (MAP).
In 2009, the IRS issued a Memorandum of Understanding between the competent authorities of the United States and Belgium that sets out the arbitration process. The competent authorities also adopted guidelines regarding the arbitration process.