November, 2013 This document is only informative and should not be used to initiate or refrain from any actions. www.duijntax.com 1 of 16 Hendrik van Duijn DTS Duijn's Tax Solutions Zuidplein 36 (WTC Tower H) 1077 XV Amsterdam The Netherlands T +31 888 387 669 T +31 888 DTS NOW F +31 88 8 387 601 [email protected]www.duijntax.com Dutch tax treaty overview Q4, 2013
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November, 2013 This document is only informative and should not be used
to initiate or refrain from any actions. www.duijntax.com
1 of 16
Hendrik van Duijn DTS Duijn's Tax Solutions Zuidplein 36 (WTC Tower H) 1077 XV Amsterdam The Netherlands T +31 888 387 669 T +31 888 DTS NOW F +31 88 8 387 601 [email protected] www.duijntax.com
Curacao; Introduction of 0% dividend withholding tax, limitation on benefits clause, expected entry, reduction of 8,3% to 5% up to 2019, entry into force January 1st, 2015. Canada: Information exchange clause amended; United Kingdom: Government employees and profit attribution permanent establishments; China: Revised information exchange clause and reduction of dividend withholding tax to 5%; Norway: Reduction of dividend withholding tax pertaining to pension funds, providing services can constitute a permanent establishment (if the services take place for a period exceeding a 6 month threshold) and Pensions, annuities and social security benefits taxing rights are allocated to the source country; Czech Republic: Revised information exchange clause, government employee clause as well as a change in the relief of double taxation method from a Czech Republic perspective. India: Most favorite nation application. Reduction of dividend withholding tax to 5%, interest withholding tax of 10% and royalty withholding tax of 10% (specific scope services); Germany: Dividend withholding tax 5%, interest withholding tax 0% and royalty withholding tax 0%. Slightly improved pension funds article, treaty made up-to-date with OECD model, comprehensive protocol, various caveats and complex rules apply.
November, 2013 6 of 16 This document is only informative and should not be used
to initiate or refrain from any actions. www.duijntax.com
vii) Dutch tax treaty / bilateral investment treaty list
LEGENDA
Country This is the country with wich the treaty had been signed, or its successor (for instance former Sovjet Union states)
Year Signing This is the year in which the treaty was signed. This typically does not coincide with the year of enactment and/or the applicable year
Dividend
The dividend withholding tax rates are divided by a / to reflect the portfolio investment rate on the one hand and the corporate participation rate (with a certain percentage of vote and/or value threshold which needs to be met)
Interest
The interest withholding tax rates are divided by a / to reflect the different applicable rates. The lower rate is typically the rate used by banks and government owned businesses.
Royalty
The royalty withholding tax rates are divided by a / to reflect the different applicable rates. The rates used differ by category of royalty income, such as trademarks, patents or movie licenses.
LOB Stands for Limitation On Benefits clause, which restricts the eligibility of the treaty benefits to qualified persons under the treaty.
BIT Bilateral Investment Treaty (the treaty with Venezuala has been cancelled, therefore the X has been inserted. It still remains in force)
Dutch tax treaty DTT Bilateral Investment Treaty BIT
This document is only informative and should not be used to initiate or refrain from any actions.
Country Country Country Country Belize Cuba Jamaica Peru Benin Ecuador Kenya Senegal Bolivia El Salvador Laos Sudan Burkina Faso Eritrea* Lebanon Tajikistan Cambodia Ethiopia Mali Tanzania Cameroon Gambia Mozambique Uruguay Cape Verde Guatemala Namibia Yemen Chile Honduras Nicaragua Costa Rica Ivory Coast Paraguay
This document is only informative and should not be used to initiate or refrain from any actions.
SCOPE LIMITATION This slide-deck does not represent an opinion of DTS and should not be relied upon as such. The slide-deck has not been prepared with the level of due diligence and analysis that would be needed to initiate or refrain from any actions. Further research and analysis is required prior to initiate or refrain from any actions. This slide-deck has not been reconciled with the Dutch tax authorities. The information in this slide-deck is based on general information and cannot be used. This slide-deck is intended to provide preliminary guidance in anticipation of further examination, discussions and analysis of issues to be identified. This document was not intended or written to be used, and it cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties. This includes penalties that may apply if the transaction that is the subject of this document is found to lack economic substance or fails to satisfy any other similar rule of law. Pursuant to an engagement between DTS and Client, General Terms & Conditions of DTS are applicable to the work performed in the execution of the engagement by DTS. The liability with respect to the envisaged engagement is limited in accordance with the provisions laid down in the General Terms & Conditions .Please note that DTS is not liable in any event for lost profits or any consequential, indirect, punitive, exemplary or special damages.
Hendrik van Duijn DTS Duijn's Tax Solutions Zuidplein 36 (WTC Tower H) 1077 XV Amsterdam The Netherlands T +31 888 387 669 T +31 888 DTS NOW F +31 88 8 387 601 [email protected] www.duijntax.com
This document is only informative and should not be used to initiate or refrain from any actions.