I. Taxes on capital
[Vervallen per 31-12-2018]
An individual living aboard a ship without any real domicile in either of the States
shall be deemed to be a resident of the State in which the ship has its home harbour.
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
one of the States 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 aforementioned rights include rights
to interests in, or to benefits of, assets to be produced by such exploration or exploitation.
In respect of paragraphs 1 and 2 of Article 7, where an enterprise of one of the States sells goods or merchandise or carries on
business in the other 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 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 State of which the enterprise is a resident.
It is understood that the provisions of paragraph 4 of Article 8 shall be interpreted in accordance with paragraph 9 and 10 of the Commentary on article
8 of the OECD Model Double Taxation Convention on Income and Capital 1977.
It is understood that notwithstanding the provisions of article 11, in case one of the States subjects the income from profit sharing bonds to a tax
on dividends, article 10 is applicable to such income arising in that State.
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, within a period of three years
after the expiration of the calendar year in which the tax has been levied.
In case Danish law is changed in such a way that Denmark can exercise a taxation right
as laid down in paragraph 5 of Article 13 then at the request of Denmark, the provisions of paragraph 5 of Article 13 may be changed and replaced by the following text:
“5. The provisions of paragraph 4 shall not affect the right of each of the States
to levy according to its own law a tax on gains from the alienation of shares or `jouissance'
rights in a company, the capital of which is wholly or partly divided into shares
and which is, under the laws of that State, a resident of that State, derived by an
individual who is a resident of the other State and has been a resident of the first-mentioned
State in the course of the last five years preceding the alienation of the shares
or `jouissance' rights."
The request for such change shall be made through diplomatic channels, by giving notice
to the Netherlands. The change shall enter into force on the thirtieth day after the
date on which the Netherlands has received such notice, and its provisions shall thereupon
have effect in respect of taxes on capital gains derived on or after the first of
January in the calendar year immediately following the year in which the change entered
into force.
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.
[Vervallen per 31-12-2018]
It is understood that the terminology “the tax payable in respect of the profits
out of which such dividends are paid", as mentioned in paragraph 5 sub-paragraph d) of Article 23, shall include any tax directly or indirectly suffered by the company paying the
dividends on the profits or income out of which the dividends are paid.
It is understood that the term “offshore activities" includes activities carried out
in an exploration or exploitation area which extends from a place offshore in that
other State to the onshore territory of that State, provided the activities carried
on onshore are incidental to the offshore activities.