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2 In case an entity that is treated as a body corporate for tax purposes is liable as
such to tax in a Contracting State, but the income of that entity is taxed in the
other Contracting State as income of the participants in that entity, the competent
authorities shall take such measures that on the one hand no double taxation remains,
but on the other hand it is prevented that merely as a result of application of the
Agreement income is (partly) not subject to tax.
It is understood that if the competent authorities of the Contracting States, in mutual
agreement have reached a solution, within the context of the Agreement, for cases
in which double taxation or double exemption would occur:
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a) as a result of the application of paragraph 2 of Article 3 with respect to the interpretation of a term not defined in the Agreement; or
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b) as a result of differences in classification (for example of an element of income
or of a person), this solution – after publication thereof by both competent authorities
– shall for the application of the Agreement also be binding in other similar cases
in the application of the provisions of the Agreement.
An individual living aboard a ship without any real domicile in either of the Contracting
States shall be deemed to be a resident of the Contracting State in which the ship
has its home harbour.
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.
Profits or income derived by a resident of a Contracting State in connection with
the exploitation of a pipeline in the other Contracting State may be taxed in that
other State.
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2 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 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. 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 Contracting State
of which the enterprise is a resident.
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 income from shares
and not as capital gains.
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. Moreover,
the competent authorities of the Contracting States may by mutual agreement establish
procedures for the application of the Articles 10, 11 and 12.
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.