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:Article 23 Elimination of double taxation

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

Article 23 Elimination of double taxation

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 Netherlands, when imposing tax on its residents, may include in the basis upon which such taxes are imposed the items of income which, according to the provisions of this Convention, may be taxed in Brazil.

2.

However, where a resident of the Netherlands derives items of income which according to Article 6, Article 7, paragraph 4 of Article 10, paragraph 5 of Article 11, paragraph 4 of Article 12, paragraphs 1 and 2 of Article 13, Article 14, Article 15, Article 16 and Article 19 of this Convention may be taxed in Brazil and are included in the basis referred to in paragraph 1, the Netherlands shall, subject to the provisions concerning the mode of application, including the provisions concerning the compensation of losses, in its national regulations for the avoidance of double taxation, exempt such items from tax consistently with the above-mentioned provisions of this Convention.

3.

Further, the Netherlands shall allow a deduction from the Netherlands tax so computed for the items of income which according to paragraph 2 of Article 10, paragraph 2 of Article 11, paragraph 2 of Article 12, paragraph 3 of Article 13, Article 17, paragraph 1 of Article 18 and Article 22 of this Convention may be taxed in Brazil to the extent that these items are included in the basis referred to in paragraph 1. The amount of this deduction shall be equal to the tax paid in Brazil on these items of income, but shall not exceed the amount of the reduction which would be allowed if the items of income so included were the sole items of income which are exempt from Netherlands tax under the provisions of Netherlands law for the avoidance of double taxation.

4.

For the purpose of paragraph 3, the tax paid in Brazil shall be deemed to be:

a)

with respect to dividends as meant in paragraph 2 of Article 10, 25 per cent of such dividends if they are paid to a company of the Netherlands holding at least 10 per cent of the voting capital of the Brazilian company, and 20 per cent in all other cases,

b)

with respect to interest as meant in paragraph 2 of Article 11, 20 per cent of such interest,

c)

with respect to royalties as meant in sub-paragraph b of paragraph 2 of Article 12, 25 per cent of such royalties if they are paid to a company of the Netherlands holding directly or indirectly at least 50 per cent of the voting capital of a Brazilian company provided that they are not deductible in the determination of the taxable income of the company paying the royalties, and 20 per cent in all other cases.

5.

Where a resident of Brazil derives income which, in accordance with the provisions of this Convention may be taxed in the Netherlands, Brazil shall allow as a deduction from the tax on the income of that person, an amount equal to the income tax paid in the Netherlands. The deduction shall not, however, exceed that part of the income tax as computed before the deduction is given, which is appropriate to the income which may be taxed in the Netherlands.

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