Protocol
[Treedt in werking per 31-03-2018]
I. GENERAL
[Treedt in werking per 31-03-2018]
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.
[Treedt in werking per 31-03-2018]
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.
[Treedt in werking per 31-03-2018]
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.
[Treedt in werking per 31-03-2018]
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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.
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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.
[Treedt in werking per 31-03-2018]
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.
[Treedt in werking per 31-03-2018]
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.
[Treedt in werking per 31-03-2018]
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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.
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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.
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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.
[Treedt in werking per 31-03-2018]
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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.
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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.