(4.1.l) Royalties
§135. According to the Article 12, 3, of the Tax Treaty Brazil-Belgium:
“the term ‘royalties’ used in this article shall be understood as remuneration of any nature payed by the use or concession of use of an author’s right on a literary work, or artistic or scientific ones, including the cinematography movies and the movies or tapes of television or of radio-diffusion, of a patent, or a trademark of the industry or of the commerce, of a draft or a model, a plan, or of a formula or process that are secret, as well as by the use or concession of use of a industrial equipment, commercial or scientific equipments and by informations related to the experience acquired in the sectors of industry, commerce or scientific sector”
§136. When we take as example a company in Brazil that sell strategic informations on the IT market for a Belgian company, it is possible verify that the norm establish a maximum cap to the taxing on the price/remuneration (royalties) payed by the Belgian company to the company in Brazil. According to the norm of the Convention, the possibility of taxing is of Brazil, however, being possible to Belgium retain income tax on the Brazilian company until a determined cap, depending of the nature of the royalty:
“a) 10% of the gross amount of the payed ‘royalties’, be by the use or the concession of use of a author’s right on a literary work, or artistic or scientific works, be by use or concession of use of cinematographic movies, or of movies or tapes of television or radio-diffusion produced by a resident in one of the Contracting States; b) 20% of the gross amount of ‘royalties’ payed by the use of a trademark of industry or of commerce (before 2007 were 25%); c) 15% in the other cases”
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