Article 3 of the Protocol adds a new Article 12A to the Convention, which provides…

certain alternative conditions are satisfied, a person (other than an individual) which is a resident of a Contracting State and derives dividends, interest, or royalties from the other Contracting State shall not be entitled under the Dividends, Interest, and Royalties Articles of the Convention to relief from Taxation in the other Contracting State unless (in the language of the English text of the Protocol) more than 50 percent of the “beneficial interest” in such person is owned by one or more individual residents of one of the Contracting States, one of the Contracting States or its political subdivisions or local authorities, or citizens of the United States (hereinafter "listed persons").

The delegations agreed that the French and Dutch language texts of the new Article 12A incorporate the meaning of the English language term "beneficial interest." Specifically, for the condition in the preceding paragraph to be satisfied, more than 50 percent of the rights to income and other economic rights in the person claiming treaty benefits must be owned by one or more of the listed persons. In the case of a trust claiming treaty benefits, for example, more than 50 percent of the interests held by beneficiaries of the trust must be held by listed persons for the condition to be satisfied; the identities of the legal owners of the trust are irrelevant for this purpose.

If this is in accord with your understanding, I would appreciate a confirmation from you to this effect.

Accept, Excellency, the renewed assurances of my highest consideration.”

I confirm this understanding on behalf of the Government of the Kingdom of Belgium.

I take the opportunity to renew to Your Excellency the assurances of my highest consideration.

Herman Dehennin, Ambassador of Belgium.