At the moment of signing the Agreement for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on income and capital gains, this
day concluded between the Kingdom of the Netherlands and the Federal Republic of Nigeria,
the undersigned have agreed that the following provisions shall form an integral part
of the Agreement.
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I.
Ad Article 7
In respect of paragraph 1 of Article 7, profits derived from the sale of goods or
merchandise of the same or similar kind as those sold, or from other business activities
of the same or similar kind as those effected, through that permanent establishment,
may be considered attributable to that permanent establishment. This provision will
only be applicable where sales or business activities are effected by an enterprise
of one of the States in the other State through other outlets or fixed points than
its permanent establishment.
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II.
Ad Article 7
Payments received as a consideration for technical services, including studies or
surveys of a scientific, geological or technical nature, or for engineering contracts
including blue prints related thereto, or for consultant or supervisory services shall
be deemed to be profits of an enterprise to which the provisions of Article 7 apply.
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III.
Ad Article 8
If the competent authorities of the States have agreed on the basis of Article 25
that profits as meant in Article 8 are derived by an enterprise or enterprises of
one of the States from the operation of ships or aircraft in international traffic
to or from places in the other State and that such profits are not derived by an enterprise
or enterprises of the other State from the operation of ships or aircraft in international
traffic to or from places in the first-mentioned State and that such situation has
a permanent nature, the condition of reciprocity as envisaged in paragraph 1 of Article
8 is not met and, no exemption shall be granted; in such case, the tax so charged
shall be 1 per cent of the earnings of the enterprise derived from the other State.
For the purposes of the foregoing sentence, the term "earnings" means income derived
by a shipping or air transport enterprise of one of the States from the carriage of
passengers, mail, livestock or goods boarded or loaded in the other State, less the
refunds and payments of wages and salaries of ground staff and excluding the income
derived from the carriage of passengers, mail, livestock or goods which are brought
to that other State solely for transhipments or transfer.
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IV.
Ad Article 9
It is understood that the fact that associated enterprises have concluded arrangements,
such as costsharing 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 one of the States
from checking the above-mentioned arrangements for conditions as meant in paragraph
1 of Article 9.
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V.
Ad Articles 10, 11 and 12
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(i) The competent authorities of the States shall by mutual agreement settle the mode
of application of the reductions and exemptions from tax in the State of source given
by Articles 10, 11 and 12.
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(ii) Where tax has been levied at source in excess of the amount of tax chargeable under
the provisions of Articles 10, 11 and 12, applications for refund of the excess amount
of tax have to be lodged with the competent authority of the 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.
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VI.
Ad Article 13
It is understood that the terms corporate organization, reorganization, amalgamation,
division or similar transaction refer to a transfer of shares within a group of associated
enterprises. In that case the shares will be evaluated for the transferee at the bookvalue
of the transferor.
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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 or the supervision thereof, respectively.
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VIII.
Ad Article 24
It is understood that in both States, interest, royalties and other disbursement paid
by an enterprise of one of the States to a resident of the other State, for the purpose
of determining according to its tax legislation the taxable profits of such enterprise,
are deductible in the same way as if they had been paid to a resident of the first-mentioned
State.
IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed this Agreement.
DONE at Lagos this 11th day of December, 1991, in duplicate, in the English language.
(sd.) E. T. J. T. KWINT
Eric T. J. T. Kwint