Belgium As A Hub For Doing Business In Congo

In October 2011, the Democratic Republic of Congo (DRC) Senate finally ratified the avoidance of double taxation treaty with Belgium (the "Treaty") that was signed on 23 May 2007 and already ratified by Belgium in January 2009. The ratification law was promulgated in the DRC on 24 December 2011. Its ratification remains to be notified to Belgium, after which the Treaty will become effective as from 1 January of the following year. This means that the Treaty will come into force at the earliest on 1 January 2013 and apply for fiscal year 2014.

The Treaty, the first of its kind ratified by the DRC (an avoidance of double taxation treaty with South Africa was signed in 2005 but is not yet effective), reflects the historical and business links between Belgium and its former colony, and is likely to promote Belgium as a hub for inward investment into the DRC. Investors in the DRC, subject to home country tax provisions, may have an interest in opening an intermediary