EMBASSY OF THE KINGDOM OF THE NETHERLANDS
Hong Kong, 22 March 2010
I have the honour to refer to the Agreement between the Kingdom of the Netherlands and the Hong Kong Special Administrative Region of the People’s Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, with Protocol, signed at Hong Kong today, 22 March 2010 (hereinafter referred to as “the Agreement”), and to propose on behalf of the Government of the Kingdom of the Netherlands the following:
Upon the entry into force of the Agreement signed today, it is understood that if at any time after the entry into force of this Agreement, under any Convention or Agreement between the Hong Kong Special Administrative Region and a third state which is a member of the Global Forum on Transparency and Exchange of Information, the Hong Kong Special Administrative Region agrees to exchange information on taxes other than the taxes covered by the Agreement, then, the Hong Kong Special Administrative Region will pursue with expedition a negotiation with the Netherlands aiming to extend the scope of article 25 of the Agreement to apply to such other taxes.
It is further understood that the Hong Kong Special Administrative Region agrees to the secondary use of the product or outcome generated from the primary information exchanged under the provisions of article 25 of the Agreement, for the determining and levying of inheritance tax, gift tax, value added tax, chance tax and other heads of taxes that may be agreed to by the competent authorities from time to time, and for carrying out income-related regulations under the laws of the Netherlands that are administered, implemented or enforced by the tax authorities of the Netherlands.
I have the further honour to propose that this Note and your Excellency’s reply confirming on behalf of your Government the foregoing shall constitute an agreement between the two Governments and which shall come into effect on the date of entry into force of the Agreement signed today.
Accept, Your Excellency, the expression of my highest consideration.
J. C. de Jager
Minister of Finance of the Netherlands
H. E. K. C. Chan
Secretary for Financial Services and the Treasury
The Hong Kong Special Administrative Region of the People's Republic of China