Convention between the Government of the Kingdom of the Netherlands and the Government of the Kingdom of Bahrain for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income
Protocol
Geldend
Geldend vanaf 24-12-2009
- Bronpublicatie:
16-04-2008, Trb. 2008, 119 (uitgifte: 16-06-2008, kamerstukken/regelingnummer: -)
- Inwerkingtreding
24-12-2009
- Bronpublicatie inwerkingtreding:
13-01-2010, Trb. 2010, 12 (uitgifte: 13-01-2010, kamerstukken/regelingnummer: -)
- Vakgebied(en)
Internationaal belastingrecht (V)
Internationaal belastingrecht / Belastingverdragen
At the moment of signing the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, this day concluded between the Kingdom of Bahrain and the Kingdom of the Netherlands, the undersigned have agreed that the following provisions shall form an integral part of the Convention.
A. General
1
It is understood that the provisions of the Convention which are the same or substantially the same as the corresponding provisions of the OECD Model Tax Convention on Income and on Capital, shall be interpreted according to the OECD Commentary on these provisions at the moment of signing the Convention and to subsequent clarifying modifications of the OECD Commentary on these provisions. The understanding in the preceding sentence shall not apply with respect to any contrary interpretation agreed to in this Protocol, to contrary interpretation agreed to by the competent authorities after the entry into force of the Convention or to reservations or observations to the OECD Model Tax Convention or OECD Commentary by either Contracting State.
2
In the case of an item of income derived by or through a person that is fiscally transparent under the laws of either State, such item shall be considered to be derived by a resident of a State to the extent that the item is treated for the purposes of the taxation law of such State as the income of a resident. Where, by virtue of the preceding sentence, an item of income is considered by a State to be derived by a person who is a resident of that State, and the same item is considered by the other State to be derived by another person who is a resident of that other State, that sentence shall not prevent either State from taxing the item as the income of the person considered by that State to have derived the item of income.
3
Where, in accordance with paragraph 2, an item of income is taxed in a Contracting State in the hands of a person that is fiscally transparent under the laws of the other State, and is also taxed in the hands of a resident of the other Contracting State as a participant in such a person, that other State shall provide relief in respect of taxes imposed in the first-mentioned State on that item of income in accordance with the provisions of Article 22.
B. Ad Article 3, paragraph 2 and Article 25
It is understood that, if the competent authorities of the Contracting States have, by mutual agreement, reached a solution within the context of the Convention for cases in which
- a.
application of paragraph 2 of Article 3 with respect to the interpretation of a term not defined in the Convention; or
- b.
differences in qualification (for example of an element of income or of a person)
would result in double taxation or double exemption, this solution, after publication thereof by both competent authorities, shall also be binding for the application of the provisions of the Convention in other similar cases.
C. Ad Article 4
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.
D. Ad Article 5, paragraph 2, subparagraphs g and h
It is understood that a sales outlet and a warehouse in relation to a person providing storage facilities for others can only be deemed to be a permanent establishment insofar as the other activities of the enterprise in the other Contracting State consist of business activities which constitute a permanent establishment in the meaning of Article 5.
E. Ad Articles 5, 6, 7, 13 and 23
It is understood that rights to the exploration and exploitation of natural resources shall be regarded as immovable property located in the Contracting State to whose seabed — and subsoil thereof — these rights apply, and that these rights are regarded as assets of a permanent establishment in that State. Furthermore, it is understood that the aforementioned rights include rights to interests in, or benefits from assets that arise from, that exploration or exploitation.
F. Ad Article 7
1
Payments received as a consideration for technical services, including studies or surveys of a scientific, geological or technical nature, or for consultancy or supervisory services shall be deemed to be payments to which the provisions of Article 7 apply.
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 received by 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 in which 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.
G. Ad Article 8
It is understood that the provisions of Article 8 shall also apply to taxes levied on the basis of the gross receipts in respect of the carriage of passengers and cargo in international traffic.
H. Ad Article 10
Notwithstanding paragraph 2 of Article 10, the Contracting State of which the company is a resident shall not levy a tax on dividends paid by that company, if the beneficial owner of the dividends is a pension fund referred to in paragraph 2 of Article 4.
I. Ad Articles 10, 11 and 12
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.
J. Ad Articles 10 and 13
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.
K. Ad Article 25
The competent authorities of the States may also agree, with respect to any agreement reached as a result of a mutual agreement procedure as meant in Article 25, if necessary contrary to their respective national legislation, that the State in which there is an additional tax charge as a result of the aforementioned agreement shall not impose any increases, surcharges, interest and costs with respect to this additional tax charge, if the other State in which there is a corresponding reduction of tax as a result of the agreement refrains from the payment of any additional compensation due with respect to such a reduction of tax.
L. Ad Article 26
1
The provisions of Article 26 shall apply accordingly to information that is relevant for carrying out the income-related regulations under the laws of the Netherlands by the authorities of the Netherlands concerned with the implementation, administration or enforcement of these income-related regulations.
2
Any information received under paragraph 1 of this Article in connection with Article 26 of this Convention, shall be used only for the purpose of the determination and levying of the contributions and the determination and granting of the benefits under the income related regulations as meant in paragraph 1.
IN WITNESS whereof the undersigned, duly authorised thereto, have signed this Protocol.