Article 23 Elimination of double taxation

1.

a)

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 Agreement, may be taxed or shall be taxable only in the Sultanate of Oman.

b)

However, where a resident of the Netherlands derives items of income which according to paragraphs 1, 3 and 4 of Article 6, paragraph 1 of Article 7, paragraph 6 of Article 10, paragraph 3 of Article 11, paragraph 4 of Article 12, paragraphs 1 and 2 of Article 13, Article 14, paragraphs 1 (subparagraph a) and 2 (subparagraph a) of Article 19 and paragraph 2 of Article 22 of this Agreement may be taxed in the Sultanate of Oman and are included in the basis referred to in paragraph 1, the Netherlands shall exempt such items of income by allowing a reduction of its tax. This reduction shall be computed in conformity with the provisions of the Netherlands law for the avoidance of double taxation. For that purpose the said items of income shall be deemed to be included in the amount of the items of income which are exempt from Netherlands tax under those provisions.

c)

Further, the Netherlands shall allow a reduction from the Netherlands tax so computed for the items of income which according to paragraph 2 of Article 10, paragraph 2 of Article 12, paragraphs 1 and 3 of Article 15, Article 16, paragraphs 1 and 2 of Article 17 and paragraphs 1, 2 and 3 of Article 18 of this Agreement may be taxed in the Sultanate of Oman to the extent that these items are included in the basis referred to in paragraph 1. The amount of this reduction shall be equal to the tax paid in the Sultanate of Oman on these items of income, but shall, in case the provisions of the Netherlands law for the avoidance of double taxation provide so, 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 the Netherlands law for the avoidance of double taxation.

This paragraph shall not restrict allowance now or hereafter accorded by the provisions of the Netherlands law for the avoidance of double taxation, but only as far as the calculation of the amount of the reduction of Netherlands tax is concerned with respect to the aggregation of income from more than one country and the carry forward of the tax paid in the Sultanate of Oman on the said items of income to subsequent years.

d)

Notwithstanding the provisions of paragraph b, the Netherlands shall allow a reduction from the Netherlands tax for the tax paid in the Sultanate of Oman on items of income which according to paragraph 1 of Article 7, paragraph 6 of Article 10, paragraph 3 of Article 11, paragraph 4 of Article 12, paragraph 1 of Article 14 and paragraph 2 of Article 22 of this Agreement may be taxed in the Sultanate of Oman to the extent that these items are included in the basis referred to in paragraph 1, insofar as the Netherlands under the provisions of the Netherlands law for the avoidance of double taxation allows a reduction from the Netherlands tax of the tax levied in another country on such items of income. For the computation of this reduction the provisions of paragraph 1, subparagraph c, of this Article shall apply accordingly.

2.