Article 26 Overeenkomst tussen het Koninkrijk der Nederlanden en de Staat Israël tot het vermijden van dubbele belasting en het voorkomen van het ontgaan van belasting met betrekking tot belastingen naar het inkomen en naar het vermogen
A
1. The Netherlands, when imposing tax on its residents, may include in the basis upon which such taxes are imposed, the items of income or capital, which according to the provisions of this Convention may be taxed in Israel.
2. Without prejudice to the application of the provisions concerning the compensation of losses in the unilateral regulations for the avoidance of double taxation the Netherlands shall allow a deduction from the amount of tax computed in conformity with the first paragraph of this Article equal to such part of that tax which bears the same proportion to the aforesaid tax, as the part of the income or capital which is included in the basis mentioned in the first paragraph of this Article and may be taxed in Israel in accordance with Articles 7, 8, paragraph 6 of Article 11, paragraph 5 of Article 12, paragraph 5 of Article 13, paragraphs 1 and 2 of Article 15, paragraph 1 of Article 16, paragraph 1 of Article 17, paragraph 1 of Article 18, Articles 19, 21 and paragraphs 1 and 2 of Article 25 of the Convention bears to the total income or capital which forms the basis mentioned in paragraph 1 of this Article.
3. Further the Netherlands shall allow a deduction from the Netherlands tax computed in accordance with the preceding paragraphs of this Article with respect to the items of income which may be taxed in Israel according to paragraph 2 of Article 11, paragraph 2 of Article 12, paragraph 2 of Article 13, and paragraph 3 of Article 17, and are included in the basis mentioned in paragraph 1 of this Article. The amount of this deduction shall be the lesser of the following amounts:
a) the amount equal to the Israeli tax;
b) the amount of the Netherlands tax which bears the same proportion to the amount of tax computed in conformity with paragraph 1 of this Article, as the amount of the said items of income bears to the amount of income which forms the basis mentioned in paragraph 1 of this Article.
4. Where, by reason of the relief given under the provisions of Israeli laws for the purpose of encouraging investment in Israel, the Israeli tax actually levied on dividends paid by a company which is a resident of Israel or on interest arising in Israel is lower than the tax Israel may levy according to paragraph 2 of Article 11 and paragraph 2 of Article 12, respectively, then the amount equal to Israeli tax as meant in sub-paragraph a) of paragraph 3 on those items of income shall be deemed to be:
a) with respect to dividends paid by a company which is a resident of Israel: 15 per cent of the amount of the dividends;
b) with respect to interest arising in Israel and paid to a bank or a financial institution: an amount equal to the amount of tax which Israel actually has levied thereon increased by twice the difference between this amount and 10 per cent of the amount of such interest, provided that the deduction shall not exceed 15 per cent of the amount of such interest;
c) with respect to other interest arising in Israel: 15 per cent of the amount of the interest.
5. The amount equal to Israeli tax as meant in sub-paragraph a) of paragraph 3 on royalties arising in Israel shall be deemed to be 10 per cent of the amount of the royalties.
B
1. Where a resident of Israel derives income which, in accordance with the provisions of this Convention may be taxed in the Netherlands, Israel shall, except in the case referred to in paragraph 5 of Article 15 and subject to the provisions of its law, allow as a deduction from the tax on that income, an amount equal to the tax paid thereon in the Netherlands. The deduction shall not, however, exceed that part of the tax as computed before the deduction is given, which is appropriate to the income which may be taxed in the Netherlands.
2. However, dividends paid by a company resident of the Netherlands to a company resident in Israel, which owns at least 25 per cent of the voting power of the company paying the dividends, shall be excluded from the tax base in Israel in so far as such dividends would be excluded from the tax base by Israeli tax laws in case both companies had been resident of Israel.
C If a resident of one of the States derives gains which may be taxed in the other State in accordance with paragraph 5 of Article 15, 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 Staat Israël tot het vermijden van dubbele belasting en het voorkomen van het ontgaan van belasting met betrekking tot belastingen naar het inkomen en naar het vermogen
- Soort
- Verdrag
- Geldend vanaf
- 26-07-1996
- BWB-id
- BWBV0003781
- Versie
- 1996-07-26_0