Protocol
[Regeling vervallen per 01-01-2022]
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 on property, this
day concluded between the Government of the Kingdom of the Netherlands and the Government
of the Russian Federation, the undersigned have agreed that the following provisions
shall form an integral part of the Agreement.
[Regeling vervallen per 01-01-2022]
It is understood that for the purposes of this Agreement
-
(i) in the case of the Netherlands, the State or a local authority thereof as well as
a pension fund or charitable organisation recognised as such in a Contracting State
and of which the income is generally exempt from tax in that State, and
-
(ii) in the case of Russia, central and local authorities,
shall be regarded as a resident of that State. As recognised pension fund of a Contracting
State shall be regarded any pension fund recognised and controlled according to statutory
provisions of that State.
[Regeling vervallen per 01-01-2022]
It is understood that exploration and exploitation rights of natural resources shall
be regarded as immovable property situated in the Contracting State the sea bed and
sub-soil 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 aforementioned rights include rights to interests in, or to the benefits
of, assets to be produced by such exploration or exploitation.
[Regeling vervallen per 01-01-2022]
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 of income of 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. Specifically, 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 attributable
to 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 that is effectively carried out by the permanent establishment in the
Contracting State where the permanent establishment is situated, if the data on expenses
and costs incurred for the purposes of the above-mentioned activities of the permanent
establishment are provided by the taxpayer to the tax authorities.
[Regeling vervallen per 01-01-2022]
It is understood that in the case of interest, wages and salaries paid by an enterprise
of a Contracting State the capital of which is wholly or partly owned or controlled,
directly or indirectly, by residents of the other Contracting State, such interest,
wages and salaries shall be deductible in computing the taxable profits of such enterprise,
unless the interest, wages and salaries relate to profits which are exempt from tax.
The foregoing sentence shall apply accordingly to interest, wages and salaries when
computing the taxable profits of a permanent establishment.
[Regeling vervallen per 01-01-2022]
It is understood that in the case of the Netherlands the term dividends includes income
from profit sharing bonds.
[Regeling vervallen per 01-01-2022]
It is understood that for establishing whether the condition of a minimum investment
of 75.000 Ecu is met, the value of the investment at the moment of making this investment
will be taken into account, as well as any investments made or withdrawn thereafter.
[Regeling vervallen per 01-01-2022]
The term “dividends” as used in paragraph 4 of Article 10 shall include remittances out of Russia of profits derived by a resident of the Netherlands
from his investment as a participant in a joint venture with Russian and foreign investment
that is treated as a body corporate or legal entity for tax purposes.
[Regeling vervallen per 01-01-2022]
Each Contracting State shall endeavour to establish procedures to enable taxpayers
to receive income dealt with under articles 11 and 12 without the imposition of withholding taxes where the Agreement provides for taxation
in the State of residence only. Where the Agreement provides for taxation in the State
where the income arises each State shall endeavour to establish procedures to enable
taxpayers to receive income under deduction of tax at the rate provided for in the
Agreement.
Where tax has been levied at source at a rate in excess of that provided for under
the terms of the Agreement, 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,
within a period of two years after the expiration of the calendar year in which the
tax has been levied. Where a claim is made by a taxpayer for a refund as meant in
the foregoing sentence tax withheld at source in a Contracting State at the rate in
excess of that provided for under the terms of the Agreement will be refunded in a
timely manner.
[Regeling vervallen per 01-01-2022]
It is understood that the term “a local authority thereof” includes also: in the case
of Russia, the respective authorities of the subjects of the Russian Federation.
[Regeling vervallen per 01-01-2022]
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.
[Regeling vervallen per 01-01-2022]
As long as Russia cannot under its national legislation exercise the taxation right
provided for under paragraph 1 of article 18, the provisions of this paragraph shall, for the time being, not be operative concerning
pensions received by a resident of Russia in connection with an employment formerly
exercised in the Netherlands. With respect to such pensions the provisions of the
Netherlands national legislation will continue to apply. As soon as the competent
authority of Russia informs the competent authority of the Netherlands that Russia
can exercise under its national legislation the taxation right provided for under
paragraph 1, this protocol provision will cease to apply.
[Regeling vervallen per 01-01-2022]
It is understood that the provisions of this Agreement are not applicable to taxes
levied on prizes of lotteries, gambling and games of chance received by individuals.
[Regeling vervallen per 01-01-2022]
It is understood that for the computation of the reduction mentioned in paragraph 3 of article 23, the items of property referred to in paragraph 1 of article 22 shall be taken into account for the value thereof reduced by the value of the debts
secured by mortgage on that property and the items of property referred to in paragraph
2 of article 22 shall be taken into account for the value thereof reduced by the value
of the debts pertaining to the permanent establishment or fixed base.
[Regeling vervallen per 01-01-2022]
It is understood that the provisions of article 24 will only be effective when the competent authorities of the Contracting States have
agreed upon by mutual agreement in writing that this article will be operative.
DONE at Moscow, on 16 December 1996, in duplicate, in the Dutch, Russian and English
languages, the three texts being equally authentic. In case there is any divergence
of interpretation between the Dutch and Russian texts, the English text shall be operative.
For the Government of the Kingdom of the Netherlands,
(sd.) W. KOK
For the Government of the Russian Federation,
(sd.) V. S. TSJERNOMYRDIN