Double Tax Treaty between Luxembourg & Netherlands | Damalion

Convention

Between the Grand Duchy of Luxembourg and the Kingdom of the Netherlands for the avoidance of double taxation and the prevention of fiscal Evasion with respect to Taxes on Income and wealth

 

His Royal Highness the Grand Duke of Luxembourg and Her Majesty the Queen of the Netherlands,

Desiring to conclude a convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital,

have agreed upon the following provisions:

Chapter I. – Scope of the Convention

Article 1

Persons covered

This Convention shall apply to persons who are residents of either or both States. of the two States.

 

Article 2

Taxes covered

 

  1. This Convention shall apply to taxes on income and on capital imposed on behalf of each of the States, its political subdivisions and its local authorities, irrespective of the local authorities, irrespective of the system of collection.
  1. 2. Taxes on income and on capital shall include taxes imposed on total income, on total capital, on total income, total wealth, or on items of income or wealth, including taxes on gains from including taxes on gains from the alienation of movable or immovable property, taxes on the property, taxes on the amount of wages paid by enterprises, and taxes on capital gains.
  1. The existing taxes to which the Convention shall apply include
  1. in the case of the Netherlands:

-de inkomstenbelasting (the income tax);

-de loonbelasting (tax on salaries, wages, pensions);

-vennootschapsbelasting (corporate tax);

-dividendbelasting (dividend tax);

-commissarissenbelasting (tax on the remuneration of company directors)

-vermogensbelasting (wealth tax);

-grondbelasting (property tax);

  1. in respect of Luxembourg

-the personal income tax;

-the tax on the income of communities;

-the special tax on directors’ fees;

-wealth tax;

-the communal commercial tax (including the tax on total wages);

-property tax.

  1. The Convention shall also apply to future taxes of an identical or similar nature which are in addition to the taxes in addition to, or in place of, the present taxes. The competent authorities of the authorities of the States shall notify each other of any substantial changes in their respective tax laws.

 

Chapter II. – Definitions

Article 3

General Definitions

 

  1. For the purposes of this Convention, unless the context otherwise requires different interpretation:
  1. the term “State” means, as the context requires, the Netherlands or Luxembourg the term “States” means the Netherlands and Luxembourg;
  1. “the Netherlands” includes that part of the Kingdom of the Netherlands which is situated in Europe and that part of the sea bed and subsoil below the North Sea, over which the Kingdom of the Netherlands, in accordance with the Convention on the Convention on the Continental Shelf, concluded in Geneva on 29 April 1958, has sovereign rights;
  1. the term “Luxembourg” means the Grand Duchy of Luxembourg
  1. “Person” includes natural persons and corporations;
  1. “company” means any legal person or entity that is treated as a legal person for as a legal person for tax purposes;
  1. the terms “enterprise of one of the States” and “enterprise of the other State” mean, respectively, an enterprise carried on by a resident of one of the States and an enterprise carried on by a resident of the other State, respectively;
  1. the term “competent authority” means:
  1. in the Netherlands: the Minister of Finance or his duly authorized representative;
  2. For the application of the Convention by each State, any expression not otherwise defined shall have the otherwise defined shall have the meaning which it has under the law of that State concerning the taxes covered by the Convention, unless the context otherwise requires. different interpretations.

 

Article 4

Domicile for Tax Purposes

  1. For the purposes of this Convention, the term “resident of one of the States” means any person who, under the laws of that State, is liable to tax in that State by reason of his domicile State by reason of his domicile, residence, place of management or any other criterion of a similar nature. other criteria of a similar nature.
  1. For the purposes of this Convention, an individual who is a member of a diplomatic or consular diplomatic or consular representation of one of the States in the other State or in a third State and who possesses the nationality of the sending State shall be deemed to be a resident of the sending State if he is subject in that State to the same obligations to the same obligations in respect of taxes on income and on capital as are imposed on residents of that State.
  1. Where under the provision of paragraph 1 an individual is considered to be a resident of each of the States, the case shall be resolved according to the following rules: 
  • Such person shall be deemed to be a resident of the State in which he has a permanent dwelling place. Where he has a permanent home available to him  in each of the States, he shall be deemed to be a resident of the State with which his closest personal and economic ties (center of vital interests);
  • If the State in which the person’s centre of vital interests is situated cannot be determined, or if the person has no permanent home in any of the State, he shall be deemed to be a resident of the State in which he has an habitual abode
  • If such person has an habitual abode in each of the States or in neither of them, he shall be deemed to be a resident of the State of which he is a national;
  • If such person is a national of both States or of neither of them, the competent authorities of the States shall settle the question by mutual agreement. the competent authorities of the States shall decide the question by mutual agreement.
  1. Where by reason of the provision of paragraph 1 a person other than an individual is an individual is deemed to be a resident of each of the States, he shall be deemed to be a resident of the State in which his place of effective management is situated.

 

Article 5

Permanent Establishment

  1. For the purposes of this Convention, the term “permanent establishment” means a fixed place of business where the enterprise carries on business in whole or in part.
  1. The term “permanent establishment” includes in particular:
  2. a place of management;
  3. a branch office;
  4. an office;
  5. a factory;
  6. a workshop;
  7. a mine, quarry or other place of extraction of natural resources
  8. a construction or assembly site of more than six months duration.
  1. A permanent establishment is not considered to exist if:
  2. use is made of facilities solely for the purpose of storage, display or delivery of goods belonging to the enterprise;
  1. goods belonging to the business are stored solely for the purpose of storage, display or delivery;
  1. goods owned by the business are stored solely for the purpose of processing by another business;
  1. a fixed place of business is used solely for the purpose of purchasing goods or gathering information for the enterprise;
  1. A fixed place of business is used for the enterprise solely for the purposes of advertising, provision of information, scientific research or similar activities of a preparatory or auxiliary nature.
  1. A person acting in one of the States on behalf of an enterprise of the other State – other than an State – other than an agent of an independent status referred to in paragraph 5 – shall be deemed to be a permanent establishment” in the first-mentioned State if he has powers which he habitually exercises in that the enterprise of the other State – other than an agent of an independent status referred to in paragraph 5 – shall be deemed to be a “permanent establishment” in the first-mentioned State if it has powers which it habitually exercises in that State and which enable it to conclude contracts on behalf of the enterprise the enterprise, unless the activity of such person is limited to the purchase of goods or limited to the purchase of goods for the enterprise.
  1. An enterprise of one of the States shall not be deemed to have a permanent establishment in the other State merely because it carries on business in that other State through a broker, general commission agent or any other intermediary of an independent status, provided that such persons are acting in the ordinary course of their business.
  1. The fact that a company which is a resident of one of the States controls or is controlled by a company which is a resident of the other State or which carries on business in that other State whether through a permanent establishment or otherwise – is not in itself sufficient to render any of such a company a permanent establishment of the other.

 

Chapter III. – Taxation of Income

Article 6

Income from real property

  1. Income from immovable property may be taxed in the State in which such property is situated.
  1. The term “immovable property” shall be defined in accordance with the law of the State in which the property is situated. The term shall in any case include property accessory to real property, livestock of agricultural and forestry undertakings, rights to which the provisions of private law concerning to which the provisions of private law concerning land ownership, the usufruct of real rights to variable or fixed royalties for the exploitation or the concession of the exploitation of mineral deposits, springs and other riches of the soil; ships, boats and aircraft are not considered as real estate.

(3) The provisions of paragraph 1 shall apply to income derived from the direct operation, rental or leasing, or any other form of operation of real property.

  1. The provisions of paragraphs 1 and 3 shall also apply to income derived from property of an enterprise as well as to income from real estate used for the property used for the practice of a liberal profession.

 

Article 7

Business Profits

 

  1. The profits of an enterprise of one of the States shall be taxable only in that State unless the enterprise carries on business in the other State through a permanent establishment situated therein. If the enterprise carries on business in such a manner the profits of the enterprise may be taxed in the other State but only to the extent that they are attributable to that permanent establishment.
  1. Where an enterprise of one of the States carries on business in the other State through a permanent establishment situated therein, there shall in each State be attributed to that permanent the profits which it might be expected to make if it were a distinct and separate enterprise carrying on separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
  1. In computing the profits of a permanent establishment, there shall be allowed as a deduction expenses incurred for the purposes of that permanent establishment, including management and general administrative expenses incurred, either in the State in which such permanent establishment is the State in which the permanent establishment is situated or elsewhere.
  1. To the extent that it is customary in one of the States to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise among its various parts, nothing in paragraph 2 shall prevent that State  determining the taxable profits according to the apportionment in the method of apportionment adopted shall, however, be such as to produce The result is consistent with the principles set forth in this Article.
  1. No profit shall be attributed to a permanent establishment by reason of the fact that such permanent establishment has merely purchased goods or merchandise for the
  1. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment the same method each year, unless there are good and sufficient reasons to the contrary. sufficient grounds to proceed otherwise.
  1. Where profits include items of income which are treated separately in other Articles of this Convention, the provisions of those Articles shall not be affected by the provisions of this Article.

 

Article 8

Maritime, Inland and Air Navigation

  1. Profits from the operation of ships or aircraft in international traffic may be taxed in the State in which the place of effective management of the enterprise is situated.

(2) Profits from the operation of inland waterway vessels may be taxed in the State in which the place of effective management of the enterprise is situated.

  1. If the place of effective management of a maritime or inland navigation enterprise is on board a ship or on board a ship or boat, that place of business shall be deemed to be situated in the State in which the home port of the vessel or ship, or in the absence of a home port, in the State of which the operator of the ship or boat is a resident.

 

Article 9

Associated enterprises

Where

  1. an enterprise of one of the States participates directly or indirectly in the management control or capital of an enterprise of the other State or
  1. the same persons participate directly or indirectly in the management capital of an enterprise of one State and an enterprise of the other State, the same persons State, and that, in either case, the two enterprises are, in their commercial or financial relations or financial relations between the two enterprises are bound by agreed or imposed conditions which differ from those which concluded between independent enterprises, the profits which, but for those conditions, would have been obtained by one of the enterprises but could not in fact have been obtained because of those conditions, may be included in the profits of that enterprise and taxed accordingly.

 

Article 10

Dividends

  1. Dividends paid by a company which is a resident of one of the States to a resident of the other State shall be taxable only in that other State.
  1. The provisions of paragraph 1 shall not affect the right of either State

to levy a tax on dividends paid by a company that is a resident of that State to a resident of the other State. that State to a resident of the other State. However, the rate of the tax shall not exceed:

  1. 2½ percent of the gross amount of the dividends if the recipient is a company whose the capital of which, in whole or in part, is divided into shares or similar corporate units  to shares under the tax laws of that other State and which directly owns at least 25 per cent of the capital of the company. 25 percent of the capital of the company paying the dividends;
  1. 15 percent of the gross amount of the dividends in all other cases.
  1. The competent authorities of the States shall settle by mutual agreement the manner in which

application of paragraph 2.

  1. The provisions of paragraphs 1 and 2 shall not apply to the taxation of the company in respect of the profits out of which the dividends are paid.
  1. the term “dividends” as used in this article means income from shares, stocks from shares, profit-sharing certificates, mining shares, founder’s shares or other profit-sharing shares, as well as income from debt securities with a profit-sharing clause and income from other shares which is treated as income from shares under the tax laws of the tax legislation of the state of which the distributing company is a resident.
  1. The provisions of paragraphs 1 and 2 shall not apply where the recipient of the dividends, being a resident of one of the resident of one of the States has in the other State of which the company paying the dividends is a resident, has in the other State of which the company paying the dividends is a resident, a permanent establishment with which the holding in respect of which the dividends are paid is effectively connected. to which the holding in respect of which the dividends are paid is effectively connected. In such a case, the provisions of Article 7 shall apply.
  1. Where a company which is a resident of one of the States derives profits or income from the other of the other State, that other State may not impose any tax on dividends paid by the company to paid by the company to persons who are not residents of that other State, nor shall that other State tax on the undistributed profits of the company, even if the company is not a resident of that distributed profits of the company, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other States.
  1. Before the expiration of five years from the date of entry into force of this Convention the This Convention the competent authorities of the States shall consult together to consider the advisability of changing the rate referred to in paragraph 2(a) of this article.

 

Article 11

Interest

  1. Interest arising in one of the States and paid to a resident of the other State shall be taxable only in that other State.
  1. The competent authorities of the States shall by mutual agreement determine the manner in which the State interest arises shall waive its taxation.
  1. The term “interest” as used in this Article means income from public funds, bonds or debentures public funds, bonds or debentures, whether or not secured by mortgage, and debts of any kind, and any other income treated as income from money lent by the tax laws of The term “income” does not, however, include income from the sale of securities. However, the term does not include income from debt-claims with a profit-sharing clause, as referred to in paragraph 5 of Article 10.
  1. The provisions of paragraph 1 shall not apply where the recipient of the interest, being a resident of The provisions of paragraph 1 shall not apply if the recipient of the interest, being a resident of one of the States, has in the other State in which the interest arises a permanent establishment to which the debt-claim giving rise to the interest is effectively connected. interest. In such a case, the provisions of Article 7 shall apply.
  1. If, by reason of a special relationship between the debtor and the creditor or between the two of them creditor, or which both have with third parties, the amount of interest paid, the claim for which it is paid, exceeds that which would have been agreed between the debtor and the creditor would have agreed in the absence of such relationship, the provisions of this article shall apply only to the latter amount. In such a case, the excess portion of the payments shall remain taxable in accordance with the laws of each State, due regard being handed to the State and having regard to the other provisions of this Convention.

 

Article 12

Royalties

  1. Royalties arising in one of the States and paid to a resident of the other State shall be taxable only in that other State.
  1. The competent authorities of the States shall by mutual agreement determine the manner in which the royalties arise shall waive its taxation.
  1. The term “royalties” as used in this Article means payments of any kind received for the use paid for the use of, or the right to use, any copyright of literary, artistic or scientific work, including motion pictures a patent, trademark, design or model, secret plan, formula or process, as well as for the use of or the right to use of industrial, commercial or scientific equipment and for information relating to experience acquired in the industrial, commercial or scientific field, experience.
  1. The provisions of paragraph 1 shall not apply where the recipient of the royalties resident of one of the States, has in the other State in which the royalties arise a permanent the royalties arise, has in the other State a permanent establishment with which the right or property in respect of which the royalties are paid is effectively connected. In such a case, the provisions of Article 7 shall apply.
  1. If, by reason of a special relationship between the debtor and the creditor or between the debtor and the creditor have with third parties, the amount of the royalties paid, the performance for which they are paid, exceeds the amount which would have been agreed the debtor and the creditor would have agreed in the absence of such relationship, the provisions of this article shall apply only to the latter amount. In such case, the excess part of the payments shall remain taxable in accordance with the laws of each case, the excess part of the payments shall remain taxable in accordance with the law of each State and having regard to the other provisions of this Convention.

 

Article 13

Limitation of Articles 10, 11 and 12

International organizations, their organs and officials, and members of a diplomatic or consular representation of a diplomatic or consular representation of a third State, who are in the territory of one of the States shall not be entitled in the other State to the reductions in or exemptions from provided for in Articles 10, 11 and 12 in respect of dividends, interest and royalties arising in that other State, if such income is not subject to income tax in the first-mentioned State.

 Article 14

Capital Gains

  1. Gains from the alienation of immovable property, as defined in paragraph 2 of Article 6, may be taxed in the State in which such property is situated.
  1. Gains from the alienation of movable property forming part of the assets of an establishment which an enterprise of one of the States has in the other State, or movable property constituting a fixed base available to a resident of one of the States in the other State for the other State for the purpose of performing professional services, including such gains from the alienation of that permanent establishment (alone or with the whole enterprise) or fixed base, may be taxed in that other State.
  1. Notwithstanding the provisions of paragraph 2, gains from the alienation of ships and aircraft operated in international traffic and inland navigation vessels as well as movable ships and aircraft operated in international traffic and inland navigation vessels, and movable property used in the operation of such ships, aircraft and boats, may be taxed in the State where the place of effective management of the enterprise is situated, taking into account the provisions of paragraph 3 of Article 8.
  1. Gains from the alienation of any property other than that referred to in the preceding paragraphs shall be taxable only in the State of which the transferor is a resident
  1. The provisions of paragraph 4 shall not affect the right of each State to levy, according to its own laws, a tax on gains from the alienation of the alienation of shares, dividend shares, dividend warrants or units of a company which is a resident of that State and of which the capital, in whole or in part, is divided into shares or shares or units of a company which is a resident of that State and of which the capital, in whole or in part, is divided into shares or State, where such gains are realized by an individual who is a resident of the other State, who is a national of the first State without being a national of the other State and who has been a resident of the first-mentioned State during the last five years prior to the alienation. However, the rate of tax shall not exceed 20 percent.

 

Article 15

Independent professions

  1. Income derived by a resident of one of the States from professional services or from other independent activities of a similar character shall be taxable only in that State unless that resident has an unless that resident has a fixed base regularly available in the other State for the purpose of performing his activities. If he has such a base, the income may be taxable in the other State but only to the extent that it is attributable to that fixed base.
  2. The term “professional services” includes, in particular, independent activities of a scientific, literary of a scientific, literary, artistic, educational or teaching nature, as well as the activities of doctors, lawyers, engineers, architects, dentists and accountants.

Article 16

Dependent Professions

  1. Subject to the provisions of Articles 17, 19 and 20, salaries, wages and other similar remuneration derived by a resident of one of the States in respect of an employment shall be taxable employment shall be taxable only in that State unless the employment is exercised in the other State. If the employment is exercised in that State, such remuneration as may be received in respect thereof may be taxed in that other State.
  1. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of one of the States shall be taxable only in the first-mentioned State if
  1. the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the taxable year concerned; and
  1. the remuneration is paid by or on behalf of an employer who is not a resident of the other State; and
  1. the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
  1. Notwithstanding the preceding provisions of this Article, remuneration derived by a resident of one of the States in respect of an employment exercised aboard a ship or aircraft in international traffic, or on board a vessel used for inland navigation, shall be taxable only in that State.

 

Article 17

Percentages

  1. 1. Directors’ fees and other similar payments received by a resident of the Netherlands in his capacity as a member of the board of directors or supervisory board may be taxed in the Netherlands in his capacity as a member of the board of directors or supervisory board of a company which is a resident of Luxembourg, shall be taxable in Luxembourg.
  1. 2. Directors’ fees and other similar payments received by a Luxembourg resident in his capacity as a “best man” of the company are taxable in Luxembourg. Luxembourg receives in his capacity as “bestuurder” or “commissaris” of a company which is a resident of the Netherlands, may be taxed in the Netherlands.

 

Article 18

Artists and sportsmen

Notwithstanding the provisions of Articles 15 and 16, income received by professional entertainers, such as theater, film, radio or television artists and musicians, as well as sportsmen and musicians, and athletes from their personal activities as such may be taxed in the taxable in the State in which such activities are carried on.

 

Article 19

Pensions

Subject to the provisions of paragraph 1 of Article 20, pensions and other similar remuneration paid to a resident of one of the States in respect of previous employment  shall be taxable only in that State.

 

Article 20

Public Offices

  1. Remuneration, including pensions, paid by one of the States, its political subdivisions political subdivisions, local authorities or other legal persons governed by public law, either directly or out of funds constituted by them, to a natural person in respect of or out of funds constituted by them, to an individual in respect of services rendered to that State, subdivision, local authority or other legal person governed by public law, in respect of services rendered to that State, subdivision, community or other legal person governed by public law in the performance of public functions, shall be taxable in this State.
  1. However, the provisions of Articles 16, 17 and 19 shall apply to remuneration or pensions paid in respect of remuneration or pensions paid in respect of services rendered in connection with a commercial or industrial activity carried on by one of the States, its political subdivisions, local authorities or other legal persons governed by public law.

 

Article 21

Other Items of Income

Items of income of a resident of one of the States, other than those to which the provisions of the preceding Articles of this Convention apply, shall be taxable only on the income of the resident of that State. the provisions of the preceding Articles of this Convention shall be taxable only in that State.

 

Chapter IV. – Taxation of Capital

Article 22

  1. 1. Capital consisting of immovable property, as defined in paragraph 2 of Article 6, may be taxed in the State in which such property is situated.
  1. 2. Capital represented by movable property forming part of the business property of a permanent establishment of an enterprise or by movable property constituting a fixed base for the purpose of performing professional services may be taxed in the State in which the permanent establishment or the fixed base is situated.
  1. Ships and aircraft operated in international traffic and inland waterway vessels, as well as movable property pertaining to their operation, may be taxed in the State in which the place of effective management of the enterprise is situated, taking into account the provisions of paragraph 3 of Article 8.
  1. All other elements of capital of a resident of one of the States shall be taxable only in that State.

 

Chapter V. – Provisions for Elimination of Double Taxation

Article 23

  1. The Netherlands, in levying taxes on its residents, may include in the basis on which the tax is levied, those items of income or capital which, in accordance with the provisions of this Convention, are taxable in Luxembourg.
  1. Subject to the application of the provisions concerning the compensation of losses in domestic regulations for the avoidance of double taxation, the Netherlands shall allow a deduction from the amount of tax computed in accordance with paragraph 1 of this the amount of the tax calculated in accordance with paragraph 1 of this Article shall be reduced by an amount equal to that part of the tax which corresponds to the ratio between the amount of income or capital taxable in Luxembourg under Articles 6, 7, 8, 9, 10(6), 11(4), 12(4), 14(1), (2) and (3), 15, 16(1) and (3), and 15, 16, paragraph 1, 17, paragraph 1, 18, 20 and 22, paragraphs 1, 2 and 3 of this Convention and the this Convention and the amount of income or capital which constitutes the basis referred to in paragraph 1 of this Article. For items of income which by virtue of Article 10, paragraph 2, are taxable in Luxembourg and which are Luxembourg and which are included in the basis referred to in paragraph 1 of this Article, the Netherlands shall allow the lesser of the following amounts to be deducted from the tax so calculated of the following amounts:
  1. an amount equal to the tax levied in Luxembourg
  1. an amount equal to the fraction of the Netherlands tax, calculated in accordance with paragraph 1 of this Article, which corresponds to the ratio between the amount of the said items of income and the amount of the income which constitutes the basis referred to in paragraph 1 of this Article.
  1. Where a resident of Luxembourg receives income or possesses capital which in accordance with the provisions of this Convention, may be taxed in the Netherlands, Luxembourg shall, subject to the provisions of paragraph 4, exempt such income or capital paragraph 4, but may, for the purpose of computing the amount of tax on the remaining income or income or capital of that resident, apply the same rate as if the income or capital in question had such income or capital had not been exempted. This exemption does not apply However, this exemption shall not apply to capital gains referred to in paragraph 5 of Article 14.
  1. Where a resident of Luxembourg receives income which, in accordance with the provisions of paragraph 2 of Article 10, may be taxed in the Netherlands, Luxembourg shall allow a deduction Luxembourg shall allow a deduction from the tax imposed on the income of that resident of an amount equal to the tax paid in the Netherlands. The amount so deducted shall not, however, exceed deduction, however, may not exceed the fraction of the tax, calculated before the deduction, corresponding to the income received from the Netherlands.
  1. Dividends paid by a company which is a resident of the Netherlands to a company which Luxembourg, are exempt from tax in Luxembourg, provided that they would be exempt under only to the extent that they would be exempt under Luxembourg law if both companies were companies were residents of Luxembourg. In this case, the provisions of the preceding paragraph do not apply.
  1. Where a resident of one of the States receives gains which, in accordance with the provisions of paragraph 5 of Article 14, may be taxed in the other State, that other State shall allow a deduction from its tax on such earnings equal to the tax of the first State in respect of such gains.

 

Chapter VI. – Special Provisions

Article 24

Non-Discrimination

  1. Nationals of one of the States, whether or not they are residents of that State, shall not be subject in the other State to any be subject in the other State to any taxation or any requirement connected therewith which is other or than that to which nationals of that other State who are or may be subject to the same other State in the same situation.
  1. The term “nationals” means
  1. all natural persons who possess the nationality of either State

(b) all legal persons, partnerships and associations constituted in accordance with the laws in force in either of the two States.

  1. The taxation of a permanent establishment which an enterprise of one of the States has in the other State shall not be less favorably assessed in that other State than the taxation of the taxation of enterprises of that other State carrying on the same activities. This provision shall not be construed to require either State to grant to residents of the other State the residents of the other State the personal deductions, allowances and reductions of deductions, allowances and reductions of tax on account of civil status or family responsibilities which it grants to its own residents.
  1. Enterprises of either State, the capital of which is wholly or partly owned or control directly or indirectly owned or controlled by one or more residents of the other State, shall not be subject in the shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than that to which other enterprises of the same kind in the first enterprises of the same kind in the first-mentioned State.

 

Article 25

Amicable procedure

  1. [Where a resident of one of the residents of either State believes that the actions of one or both States result or will result in the States result or will result for him in taxation, not in accordance with this Convention, he may Convention, he may, irrespective of the remedies provided by the domestic laws of those States, submit his case to the competent authority of the State of which he is a resident].
  1. Such competent authority shall, if the complaint appears to it to be well-founded and if it is not itself in a position to provide a satisfactory solution, endeavour to settle the matter. itself able to provide a satisfactory solution, to settle the matter by mutual agreement with the by mutual agreement with the competent authority of the other State, with a view to the avoidance taxation not in accordance with the Convention.
  1. The competent authorities of the States shall endeavour, by mutual agreement, to resolve difficulties or doubts arising as to the interpretation or application of the or application of the Convention. They may also consult together for the avoidance of double taxation in cases not provided for in the Convention.
  1. The competent authorities of the States may communicate directly with each other with a view to reaching an agreement as described in the preceding paragraphs.

 

Article 26

Exchange of information

  1. The competent authorities of the Contracting States shall exchange such information as is that is foreseeably relevant to the application of the provisions of this Convention or for the administration or enforcement of the domestic laws concerning taxes of every kind and description taxes of every kind and description imposed on behalf of the Contracting States, their political subdivisions or their local authorities, to the extent that the extent that the taxation thereunder is not contrary to the Convention. The exchange information is not restricted by Articles 1 and 2.
  1. Information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as secret in the same manner as information obtained under the domestic law of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of the assessment or collection of the taxes referred to in paragraph 1, in proceedings or prosecutions in respect of such taxes, or in the determination of appeals in relation to such taxes, or in the enforcement of any of the foregoing. Such persons or authorities shall use such information only for such purposes. They may disclose such information in public court hearings or in judgments.
  1. In no case shall the provisions of paragraphs 1 and 2 be construed to require a Contracting State

(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State

(b) to supply information that is not obtainable under the laws or normal administrative practice of that or of the other Contracting State

(c) to supply information that would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy.

  1. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use the powers at its disposal to obtain the information The obligation in the first sentence of paragraph 1 shall not apply to the information requested by the other Contracting State. The obligation in the preceding sentence is subject to the limitations of paragraph 3 unless such limitations would prevent a Contracting State from providing information solely State from communicating information solely because it has no interest in the information for its own tax purposes. of no domestic interest to it.
  1. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to allow a Contracting State to refuse to supply information solely because it is held by a solely because the information is held by a bank, other financial institution, nominee or the financial institution, nominee, or person acting in an agency or fiduciary capacity, or because the information relates to the property rights of a person.

 

Section 27

Students

Amounts that a student or trainee who is, or was formerly, a resident of one of the States and who is present in the other State solely for the purpose of his education or training training, receives to cover his maintenance, education or training expenses shall not be taxable in that other shall not be taxable in that other State, provided that such income is derived from sources outside of that other State.

 

Article 28

Diplomatic and Consular Officials

The provisions of this Convention shall not affect the fiscal privileges of diplomatic or consular officials under the general rules of the law of nations or under the law of nations or under the provisions of special agreements.

 

Article 29

Exclusion of certain companies

This Convention shall not apply to Holding Companies within the meaning of the special Luxembourg legislation of Luxembourg (currently the law of July 31, 1929 and the decree-law of December 27, 1937). Nor does it apply to income derived by a resident of the Netherlands from such companies or to shares or other capital securities of such companies owned by such persons of such companies.

Article 30

Territorial extension

  1. This Convention may be extended, as it stands or with the necessary modifications, to either or necessary modifications, to one or both of the two countries Suriname and the Netherlands Antilles, if the country in question imposes taxes substantially similar to the taxes to which the Convention applies. Such an extension shall take effect from the date, with such modifications and subject to such conditions, including conditions as to termination conditions, including conditions relating to termination, which shall be agreed upon by exchange of diplomatic notes.
  1. Unless otherwise agreed, when the Convention is terminated under Article 32, it shall not cease to apply to the country to which it has been extended in accordance with this Article.

 

Chapter VII. – Final Provisions

Article 31

Entry into force

  1. This Convention shall be ratified and the instruments of ratification shall be exchanged in Luxembourg as soon as possible.
  1. This Convention shall enter into force upon the exchange of the instruments of ratification and its ratification and its provisions shall apply to fiscal years and periods beginning on or after January 1, 1967.

 

Article 32

Denunciation

This Convention shall remain in force until terminated by either of the High Contracting Parties. High Contracting Parties. Each of the Parties may denounce the Convention by diplomatic means at least six months prior to the end of each calendar year, commencing with the year 1972. In such case, the Convention shall cease to be applicable for the fiscal years and periods of fiscal periods beginning after the end of the calendar year in which the notice was given.

IN WITNESS WHEREOF the above-mentioned Plenipotentiaries have signed the present Convention and have affixed thereto their seals.

DONE in duplicate, this 8th day of May 1968 at The Hague in the Dutch and French languages, both texts being equally authentic.

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