At the moment of signing the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, this day concluded between the Kingdom of the Netherlands and the Kingdom of Sweden, the undersigned have agreed that the following provisions shall form an integral part of the Convention.
I. Ad Article 3, paragraph (1), sub-paragraph (b)
It is understood that the term “the Netherlands” shall include the exclusive economic zone within which the Netherlands may exercise sovereign rights in accordance with international law, if the Netherlands, under Netherlands laws, will designate such a zone and will exercise taxation rights therein.
II. Ad Article 3, paragraph (1), sub-paragraph (g)
Transport of supplies or personnel between a Contracting State and a location where activities are carried on offshore in that State or between such locations, shall be regarded as transport between places in that State.
III. Ad Article 4
An individual living aboard a ship without any real domicile in either of the Contracting State shall be deemd to be a resident of the Contracting State in which the ship has its home harbour.
IV. Ad Articles 5, 6, 13 and 23
It is understood that exploration and exploitation rights of the sea-bed and its subsoil and their natural resources shall be regarded as immovable property situated in the Contracting State the sea-bed and subsoil of which they are related to, and that these rights shall be deemed to pertain to the property of a permanent establishment in that State. Furthermore, it is understood that the afore-mentioned rights include rights to interests in, or to benefits of, assets to be produced by such exploration or exploitation.
V. Ad Article 7
In respect of paragraphs (1) and (2) of Article 7, where an enterprise of a Contracting State sells goods or merchandise or carries on business in the other Contracting State through a permanent establishment situated therein, the profits of that permanent establishment shall not be determined on the basis of the total amount received by the enterprise, but shall be determined only on the basis of the remuneration which is attributable to the actual activity of the permanent establishment for such sales or business. Especially, in the case of contracts for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, when the enterprise has a permanent establishment, the profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but shall be determined only on the basis of that part of the contract which is effectively carried out by the permanent establishment in the Contracting State where the permanent establishment is situated. The profits related to that part of the contract which is carried out by the head office of the enterprise shall be taxable only in the Contracting State of which the enterprise is a resident.
VI. Ad Articles 10, 11 and 12
Where tax has been levied at source in excess of the amount of tax chargeable under the provisions of Articles 10, 11 or 12, applications for the refund of the excess amount of tax have to be lodged with the competent authority of the Contracting State having levied the tax, within a period of three years after the expiration of the calendar year in which the tax has been levied.
VII. Ad Article 16
It is understood that “bestuurder” or “commissaris” of a Netherlands company means persons, who are nominated as such by the general meeting of shareholders or by any other competent body of such company and are charged with the general management of the company and the supervision thereof, respectively.
VIII. Ad Article 20
If the Contracting State of which a recipient referred to in paragraph (1) of Article 20 is a resident, is unable under its laws to tax the income concerned, the income shall be taxable only in the Contracting State in which the teaching or scientific research is performed.
IX. Ad Article 23
This Article shall not apply unless there is a general tax on capital in both Contracting States.
X. Ad Article 24
2 It is understood that for the computation of the reduction mentioned in paragraph (3) of Article 24, the items of capital referred to in paragraph (1) of Article 23 shall be taken into account for the value thereof reduced by the value of the debts secured by mortgage on that capital and the items of capital referred to in paragraph (2) of Article 23 shall be taken into account for the value thereof reduced by the value of the debts pertaining to the permanent establishment or fixed base.
IN WITNESS WHEREOF the undersigned, being duly authorized thereto, have signed this Convention.
DONE at Stockholm this 18th day of June 1991 in duplicate in the English language.
For the Government of the Kingdom of the Netherlands
(sd.) H. C. J. EVERAARS
For the Government of the Kingdom of Sweden
(sd.) ERIK ÅSBRINK