Convention between the Kingdom of the Netherlands and the Federative Republic of Brazil for the avoidance of double taxation and the prevention of fiscal evasion with respect of taxes on income
Protocol
Geldend
Geldend vanaf 20-11-1991
- Bronpublicatie:
08-03-1990, Trb. 1990, 67 (uitgifte: 16-05-1990, kamerstukken/regelingnummer: -)
- Inwerkingtreding
20-11-1991
- Bronpublicatie inwerkingtreding:
17-12-1991, Trb. 1991, 176 (uitgifte: 01-01-1991, kamerstukken/regelingnummer: -)
- Vakgebied(en)
Internationaal belastingrecht (V)
Internationaal belastingrecht / Voorkoming van dubbele belasting
Internationaal belastingrecht / Belastingverdragen
At the moment of the signature of the Convention between the Kingdom of the Netherlands and the Federative Republic of Brazil for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income the undersigned, being duly authorized thereto, have agreed upon the following provisions which constitute an integral part of the Convention.
1. With reference to Article 7
It is understood that the provisions of paragraph 3 of Article 7 shall apply whether the expenses mentioned therein are incurred in the Contracting State in which the permanent establishment is situated or elsewhere.
2. With reference to Article 10, 11 and 12
a)
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 Contracting State having levied the tax, within a period of five years after the expiration of the calendar year in which the tax has been levied.
b)
The competent authority of a Contracting State may settle the mode of application of the Articles 10, 11 and 12.
3. With reference to Articles 10 and 23
It is understood that the value of shares issued by a corporation of a Contracting State and received by a resident of the other Contracting State shall not be subject to tax as income in either Contracting State.
4. With reference to Article 11
a)
It is understood that the commissions paid by a resident of Brazil to a bank or financial institution in connection with services rendered by such bank or financial institution are considered to be interest and subject to the provisions of paragraphs 2 or 3 of Article 11.
b)
With respect to paragraph 3 of Article 11, the competent authorities may determine by mutual agreement other governmental institutions to which this provision shall apply.
5. With reference to Article 12, paragraph 3
It is understood that the provisions of paragraph 3 of Article 12 shall apply to payments of any kind received as a consideration for the rendering of technical assistance and technical services.
6. With reference to Article 19
It is understood that the provisions of sub-paragraph a of paragraph 1 and sub-paragraph a of paragraph 2 of Article 19 do not prevent the Netherlands from applying the provisions of paragraphs 1 and 2 of Article 23 of the Convention.
7. With reference to Article 24, paragraph 2
It is understood that the provisions of paragraph 5 of Article 10 are not in conflict with the provisions of paragraph 2 of Article 24.
8. With reference to Article 24, paragraph 3
It is understood that:
- a)
the provisions of the Brazilian law which do not allow that royalties as defined in paragraph 3 of Article 12, paid by a company resident of Brazil to a resident of the Netherlands which holds at least 50 per cent of the voting capital of that company, be deductible at the moment of the determination of the taxable income of the company resident of Brazil, are not in conflict with the provisions of paragraph 3 of Article 24 of the present Convention;
- b)
in the event that Brazil, after the signature of the present Convention, would allow, either by internal law or by a tax Convention, that royalties paid by an enterprise which is a resident of Brazil to an enterprise which is a resident of a third State not located in Latin-America, and which holds at least 50 per cent of the voting capital of the enterprise which is a resident of Brazil, be deductible at the moment of the determination of the taxable profits of this enterprise, an equal deduction will be automatically applicable, under similar conditions, to an enterprise which is a resident of Brazil paying royalties to an enterprise which is a resident of the Netherlands.
IN WITNESS WHEREOF the undersigned being duly authorized thereto having signed this Protocol and have affixed their seals.
DONE at Brasilia this 8th day of March 1990, in duplicate, in Netherlands, Portuguese and English languages, all three texts being equally authentic. In case of any divergence of interpretation the English text shall prevail.