Convention between the Kingdom of the Netherlands and the Republic of Poland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income:Protocol

Convention between the Kingdom of the Netherlands and the Republic of Poland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income

Protocol

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.

With respect to the Convention concluded between the Kingdom of the Netherlands and the Republic of Poland for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance, the undersigned have agreed that the following provisions shall form an integral part of the Convention.

I. Ad paragraph 2 of Article 3 and Article 26

It is understood that if the competent authorities of the Contracting States, in mutual agreement have reached a solution, within the context of the Convention, for cases in which double taxation or double exemption would occur:

a

as a result of the application of paragraph 2 of Article 3 with respect to the interpretation of a term not defined in the Convention; or

b.

as a result of differences in qualification (for example of an element of income or of a person),

this solution — after publication thereof by both competent authorities — shall for the application of the Convention also be binding in other similar cases.

II. 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.

III. Ad Articles 5, 6, 7, 13 and 24

It is understood that exploration and exploitation rights of natural resources shall be regarded as immovable property situated in the Contracting State the sea bed and sub-soil of which they are related to, and that these rights shall be deemed to pertain to the property of a permanent establishment in that State. Furthermore, it is understood that the aforementioned rights include rights to interests in, or to the benefits of, assets to be produced by such exploration or exploitation.

IV. Ad Articles 7 and 14

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 or Article 14 apply.

V. Ad Article 10

1.

The provisions of subparagraph b) of paragraph 2 of Article 10 shall not apply to dividends paid by or to a person who is a Fiscal Investment Institution (Fiscale Beleggingsinstelling) for the purposes of the company tax of the Netherlands or by or to a person who is an open ended investment fund, exempt for the purpose of the corporate income tax in Poland, respectively.

2.

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.

3.

It is understood that income received in connection with distributions on certificates or participating units of an investment fund is treated as income from shares.

VI. Ad Article 11

1.

It is understood that the term ‘a loan of whatever kind’ as used in subparagraph c) of paragraph 3 of Article 11 also includes convertible bonds and, as a consequence, the term ‘interest’ as used in paragraph 5 of Article 11 also includes income from non-convertible bonds and income from convertible bonds until such time as the later bonds are actually converted into shares. It is also understood that in any case the term ‘interest’ does not include items of income which are dealt with under Article 10.

2.

Paragraph 3 of Article 11 shall also apply to interest paid to and beneficially owned by:

a)

the Netherlands Development Finance Company (de Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.) or any legal successor thereof;

b)

Atradius State Business N.V. in respect of loans granted, approved, guaranteed or insured by the Government of the Netherlands;

c)

the Korporacja Ubezpieczeń Kredytów Eksportowych S.A. (KUKE S.A.), Bank Gospodarstwa Krajowego S.A.

VII. Ad Article 11

Notwithstanding the provisions of paragraph 2 of Article 11, interest received by a resident of a Contracting State in respect of a contract concluded before the date of signature of this Convention, shall be taxable only in that State during the first 12 months after the provisions of this Convention become effective.

VIII. Ad Article 16

1

It is understood that the term ‘member of the board of directors’ means:

a)

in the case of the Netherlands a ‘bestuurder’ or a ‘commissaris’;

b)

in the case of Poland a member of a ‘zarzad’, ‘rada nadzorcza’ and ‘komisja rewizyjna’.

2

It is further understood that ‘bestuurder or commissaris’ of a Netherlands company means persons who are nominated as such by the general meeting of shareholders or by any other competent body of such company and are charged with the general management of the company and the supervision thereof, respectively.

IX. Ad Article 26

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 26, if necessary contrary to their respective national legislation, that the State, in which there is an additional tax charge as a result of the afore-mentioned agreement, will 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 interest due with respect to such a reduction of tax.

X. Ad Article 27

It is understood that paragraph 2 of Article 27 also applies to persons or authorities concerned with the determination of cases submitted to arbitration under paragraph 5 of Article 26.

XI. Ad Articles 27 and 28

1.

The provisions of Article 27 shall apply accordingly to information that is relevant for carrying out the income-related regulations under the laws of the Contracting States by the tax authorities of the Contracting States concerned with the implementation, administration or enforcement of these income-related regulations. The provisions of Article 28 shall apply accordingly to assistance in the collection of amounts paid under the income-related regulations, insofar as these amounts are treated as revenue claims in respect of taxes by the Contracting State where these amounts arise in.

2.

Any information received under paragraph 1 of this Article in connection with Article 27 shall be used only for the purpose of determining and levying the contributions and determining and granting of the benefits under the income-related regulations as meant in paragraph 1 of this Article.

3.

It is understood that the income-related regulations referred to in paragraph 1, consist of regulations purporting to grant financial support by a Contracting State to individuals in respect of, for example, rental costs, cost of childcare and health care on the basis of the financial capacity of these individuals.

IN WITNESS whereof the undersigned, duly authorized thereto, have signed this Protocol.

DONE at Warsaw this February 13th day of 2002, in duplicate, in the Netherlands, Polish and English languages, the three texts being equally authentic. In case there is any divergence of interpretation between the Netherlands and Polish texts, the English text shall prevail.

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