Article 22 Overeenkomst tussen het Koninkrijk der Nederlanden en de Islamitische Republiek Pakistan tot het vermijden van dubbele belasting en het voorkomen van het ontgaan van belasting met betrekking tot belastingen naar het inkomen
ELIMINATION OF DOUBLE TAXATION
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 Pakistan.
2 However, where a resident of the Netherlands derives items of income which according to Article 6, Article 7, paragraph 5 of Article 10, paragraph 5 of Article 11, paragraph 4 of Article 12, paragraphs 1, 2 and 5 of Article 13, Article 14, paragraph 1 of Article 15, Article 16 and Article 19 of this Convention may be taxed in Pakistan and are included in the basis referred to in paragraph 1, the Netherlands shall exempt such items by allowing a reduction of its tax. This reduction shall be computed in conformity with the provisions of Netherlands law for the avoidance of double taxation. For that purpose the said items of income shall be deemed to be included in the total amount of the items of income which are exempt from Netherlands tax under those provisions.
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, Article 17 and paragraph 2 of Article 18 of this Convention may be taxed in Pakistan 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 Pakistan 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 Where, by reason of special incentive measures designed to promote economic development in Pakistan, the Pakistan tax actually levied on interest arising in Pakistan, which may be taxed in Pakistan according to subparagraphs a) and b) of paragraph 2 of Article 11 or on royalties arising in Pakistan, which may be taxed in Pakistan according to subparagraph a) of paragraph 2 of Article 12, is lower than the tax Pakistan may levy according to those provisions, then, for the purposes of paragraph 3, the tax paid in Pakistan on these items of income shall be deemed to be:
a) with respect to interest to which subparagraph a) of paragraph 2 of Article 11 applies: an amount equal to the amount of tax which Pakistan actually has levied thereon increased by twice the difference between this amount and 10 per cent of the gross amount of such interest;
b) with respect to interest to which subparagraph b) of paragraph 2 of Article 11 applies or royalties to which subparagraph a) of paragraph 2 of Article 12 applies: 15 per cent of the gross amount of such interest or royalties.
5 In the case of Pakistan, subject to the provision of the laws of Pakistan regarding the allowance of a credit against Pakistan tax (which shall not effect the general principle hereof), the amount of Netherlands tax payable, under the laws of the Netherlands and in accordance with the provisions of this Convention, whether directly or by deduction, by a resident of Pakistan, in respect of income which is subject to tax both in Pakistan and the Netherlands, shall, except in the case referred to in paragraph 6 of Article 13, be allowed as a credit against the Pakistan tax payable in respect of such income but in an amount not exceeding that proportion of Pakistan tax which such income bears to the entire income chargeable to Pakistan tax.
6 Where a resident of one of the States derives gains which may be taxed in the other State in accordance with paragraph 6 of Article 13, that other State shall allow a deduction from its tax on such gains to an amount equal to the tax levied in the first-mentioned State on the said gains.
- Regeling
- Overeenkomst tussen het Koninkrijk der Nederlanden en de Islamitische Republiek Pakistan tot het vermijden van dubbele belasting en het voorkomen van het ontgaan van belasting met betrekking tot belastingen naar het inkomen
- Soort
- Verdrag
- Geldend vanaf
- 04-10-1982
- BWB-id
- BWBV0002856
- Versie
- 1982-10-04_0