I. GENERAL [Treedt in werking op een nader te bepalen tijdstip]
Where entities are considered to be transparent by one of the Contracting States and are considered to be non-transparent by the other Contracting State, and this leads to double taxation or double non-taxation not in accordance with the provisions of this Convention, the competent authorities of the Contracting States shall find solutions pursuant to Article 24.
II. AD ARTICLE 1 AND 4 [Treedt in werking op een nader te bepalen tijdstip]
Notwithstanding the provisions of Articles 1 and 4, the competent authorities of the Contracting States shall, by mutual agreement, decide whether or not a resident of a Contracting State is subject to a special regime and, if so, to which extent it shall not be entitled to the benefits of this Convention. A company which is treated as a tax exempt investment institution (“vrijgestelde beleggingsinstelling”) as meant in the Netherlands Corporate Income Tax Act 1969 shall not be entitled to the benefits of Articles 10, 11, 12, 13 and 21 and the corresponding Articles of this Protocol.
III. AD ARTICLES 5, 6, 7 AND 13 [Treedt in werking op een nader te bepalen tijdstip]
It is understood that rights to the exploration and exploitation of natural resources shall be regarded as immovable property located in the Contracting State to whose territorial sea and any area beyond and adjacent to its territorial sea as meant in subparagraph b) of paragraph 1 of Article 3, within which that State, in accordance with international law, exercises jurisdiction or sovereign rights, including the seabed – and subsoil thereof, these rights apply, and that these rights are regarded as assets of a permanent establishment in that State. Furthermore, it is understood that the aforementioned rights include rights to interests in, or benefits from assets that arise from, that exploration or exploitation.
IV. AD ARTICLE 9 [Treedt in werking op een nader te bepalen tijdstip]
1. It is understood that the fact that associated enterprises have concluded arrangements, such as cost sharing arrangements or general services agreements, for or based on the allocation of executive, general administrative, technical and commercial expenses, research and development expenses and other similar expenses, is not in itself a condition as meant in paragraph 1 of Article 9. However, this does not prevent a Contracting State from checking the above-mentioned arrangements or agreements for conditions as meant in paragraph 1 of Article 9.
2. Where paragraph 2 of Article 9 requires a Contracting State to make an appropriate adjustment to reflect a change made by the other Contracting State falling within paragraph 1 of Article 9, the State making the appropriate adjustment shall not be required to take into account any penalty, whether tax or non-tax, imposed by the other Contracting State.
V. AD ARTICLE 7 [Treedt in werking op een nader te bepalen tijdstip]
It is understood that, 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 that portion of the income of the enterprise that is attributable to the actual activity of the permanent establishment in respect of such sales or business.
VI. AD ARTICLES 10, 11 AND 12 [Treedt in werking op een nader te bepalen tijdstip]
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 State having levied the tax, in the case of Zambia, within a period of six years, and in the case of the Netherlands, within a period of five years, after the expiration of the calendar year in which the tax has been levied.
VII. AD ARTICLES 10 AND 13 [Treedt in werking op een nader te bepalen tijdstip]
1. It is understood that income received in connection with the (partial) liquidation of a company or a purchase of own shares by a company is treated as dividends.
2. Notwithstanding the provisions of paragraphs 1, 2, and 5 of Article 10, dividends paid by a company which under the laws of a Contracting State is a resident of that State, to an individual who is a resident of the other Contracting State and who upon ceasing to be a resident of the first-mentioned State is taxed on the appreciation of capital as meant in paragraph 3 hereunder, may also be taxed in that State in accordance with the laws of that State, but only insofar as the assessment on the appreciation of capital is still outstanding.
3. Where an individual has been a resident of a Contracting State and has become a resident of the other Contracting State, the provisions of paragraph 4 of Article 13 shall not prevent the first-mentioned State from taxing under its domestic law the capital appreciation of shares, profit sharing certificates, call options and usufruct on shares and profit sharing certificates, in and debt-claims on a company for the period of residency of that individual in the first-mentioned State. In such case, the appreciation of capital taxed in the first-mentioned State shall not be included in the tax base when determining the appreciation of capital by the other State.
VIII. AD ARTICLE 25 AND 26 [Treedt in werking op een nader te bepalen tijdstip]
1. The provisions of Article 25 and 26 shall apply accordingly to information that is relevant for carrying out the income-related regulations and assistance in the collection of the contributions and payments made under the income-related regulations under the laws of the Contracting States by the tax authorities of the Contracting States concerned with the implementation, administration or enforcement of these income-related regulations.
2. Any information received under paragraph 1 of this Article in connection with Article 25 shall be used only for the purpose of the determination and levying of the contributions and the determination and granting of the benefits under the income related regulations as meant in paragraph 1 of this Article.
IN WITNESS WHEREOF the undersigned, being duly authorised hereto, have signed this Protocol.
DONE at Addis Ababa, this 15th day of July 2015 in two originals, in the English language.
For the Kingdom of the Netherlands,
For the Republic of Zambia,