Belgian withholding tax Sample Clauses

Belgian withholding tax. Under current Belgian tax legislation, all interest payments in respect of the Bonds (which include any amount paid in excess of the initial issue price upon redemption of the Bonds by the Issuer as well as the pro rata of accrued interests corresponding to the detention period in case of a sale of the Bonds between two interest payment dates) is as a rule subject to Belgian withholding tax, currently at a rate of 25 per cent on the gross amount. Tax treaties may provide for lower rates subject to certain conditions and formalities. However, payments of interest and principal under the Bonds by or on behalf of the Issuer may be made without deduction of Belgian withholding tax if and as long as, at the moment of payment or attribution of interest, the Bonds are held by certain investors (the Eligible Investors, see below) in an exempt securities account (an X-account) that has been opened with a financial institution that is a direct or indirect participant (a Participant) in the Clearing System. Euroclear and Clearstream, Luxembourg are direct or indirect Participants for this purpose. Holding the Bonds through the Clearing System enables Eligible Investors to receive gross interest income on their Bonds and to transfer the Bonds on a gross basis. Eligible Investors are those entities referred to in article 4 of the Belgian Royal Decree of 26 May 1994 on the deduction of withholding tax (Arrêté Royal du 26 mai 1994 relatif à la perception et à la bonification du précompte mobilier/Koninklijk Besluit van 26 mei 1994 over de inhouding en de vergoeding van de roerende voorheffing), which include, inter alia: (a) Belgian resident corporate investors subject to Belgian corporate income tax; (b) Institutions, associations or companies referred to in article 2, §3 of the law of 9 July 1975 on the control of insurance companies, other than those referred to in (i) and (iii), without prejudice to the application of article 262, 1° and 5° of the Belgian Income Tax Code 1992 (the ITC 1992); (c) State regulated institutions (institutions parastatales/parastatalen) for social security or institutions equated therewith, referred to in article 105, 2° of the Royal Decree implementing ITC 1992 (RD/ITC 1992); (d) Non-resident investors whose holding of the Bonds is not connected to a professional activity in Belgium, referred to in article 105, 5° of the RD/ITC 1992; (e) Investment funds recognised in the framework of pension savings, referred to in article 115 of the RD/...