Agreement between the Government of the Kingdom of the Netherlands and the Government of the State of Qatar for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income:Article 23 Offshore activities

Agreement between the Government of the Kingdom of the Netherlands and the Government of the State of Qatar for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income

Article 23 Offshore activities

Geldend

Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.

1.

The provisions of this Article shall apply notwithstanding any other provisions of this Agreement. However, this Article shall not apply where offshore activities of a person constitute for that person a permanent establishment under the provisions of Article 5 or a fixed base under the provisions of Article 14.

2.

In this Article the term ‘offshore activities’ means activities which are carried on offshore in connection with the exploration, extraction or exploitation of the seabed and its subsoil and their natural resources, situated in a Contracting State.

3.

An enterprise of a Contracting State which carries on offshore activities in the other Contracting State shall, subject to paragraph 4 of this Article, be deemed to carry on, in respect of those activities, business in that other State through a permanent establishment situated therein, unless the offshore activities in question are carried on in the other State for a period or periods of less than in the aggregate 30 days in any twelve month period.

For the purposes of this paragraph:

a)

where an enterprise carrying on offshore activities in the other Contracting State is associated with another enterprise and that other enterprise continues, as part of the same project, the same offshore activities that are or were being carried on by the first-mentioned enterprise, and the aforementioned activities carried on by both enterprises — when added together — constitute a period of at least 30 days, then each enterprise shall be deemed to carry on its activities for a period of at least 30 days in any twelve month period;

b)

an enterprise shall be regarded as associated with another enterprise if one enterprise holds directly or indirectly at least one third of the capital of the other enterprise or if a person holds directly or indirectly at least one third of the capital of both enterprises.

4.

However, for the purposes of paragraph 3 of this Article the term ‘offshore activities’ shall be deemed not to include:

a)

one or any combination of the activities mentioned in paragraph 4 of Article 5;

b)

towing or anchor handling by ships primarily designed for that purpose and any other activities performed by such ships;

c)

the transport of supplies or personnel by ships or aircraft in international traffic.

5.

A resident of a Contracting State who carries on offshore activities in the other Contracting State which consist of professional services or other activities of an independent character, shall be deemed to perform those activities from a fixed base in the other State, if the offshore activities in question last for a continuous period of 30 days or more.

6.

Notwithstanding the second sentence of paragraph 1 of this Article, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment connected with offshore activities carried on through a permanent establishment or a fixed base in the other Contracting State may, to the extent that the employment is exercised offshore in that other State, be taxed in that other State.

7.

Where documentary evidence is produced that tax has been paid in, or an exemption has been granted by, Qatar in respect of the items of income which may be taxed in Qatar according to Article 7 in connection with paragraph 3 of this Article, according to Article 14 in connection with paragraph 5 of this Article, according to Article 15 in connection with paragraph 3 or paragraph 5 of this Article or according to paragraph 6 of this Article, the Netherlands shall allow a reduction of its tax, which shall be computed in conformity with the rules laid down in paragraph 2 of Article 24.

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