to the Convention between the Government of New Zealand and the Government of the Kingdom of the Netherlands for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
At the signing of the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, concluded today between the Government of New Zealand and the Government of the Kingdom of the Netherlands, the undersigned have agreed that the following provisions shall form an integral part of that Convention.
I With reference to Article 2
For the purposes of subparagraph b of paragraph 3 the New Zealand tax does not include the bonus issue tax.
II With reference to Article 4
An individual living aboard a ship without any residence in either of the States shall be deemed to be a resident of the State in which the ship has its home harbour.
III With reference to Article 7
In respect of paragraphs 1 and 2, where an enterprise of one of the States sells goods or merchandise or carries on business in the other State through a permanent establishment situated therein, the profits of that permanent establishment shall not be determined on the basis of the total amount received by the enterprise, but shall be determined only on the basis of the remuneration which is attributable to the actual activity of the permanent establishment for such sales or business. Especially, in the case of contracts for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, when the enterprise has a permanent establishment, the profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but shall be determined only on the basis of that part of the contract which is effectively carried out by the permanent establishment in the State where the permanent establishment is situated. The profits related to that part of the contract which is carried out by the head office of the enterprise shall be taxable only in the State of which the enterprise is a resident.
IV With reference to Article 7
Nothing in that Article shall affect the operation of any law of either State relating to the calculation of income and the computation of profits from life insurance, provided that if the relevant laws in force in that State at the date of signature of the Convention are varied (otherwise than in minor respects so as not to affect its general character) the competent authorities of the States shall consult with each other with a view to agreeing to any amendment of this provision that may be appropriate.
V With reference to Articles 10, 11 and 12
If in any future double taxation convention with any other country, being a member of the Organisation for Economic Co-operation and Development, New Zealand should limit its taxation at source on dividends, interest and royalties to a rate lower than the one provided for in any of such articles, New Zealand shall without undue delay enter into negotiations with the Netherlands to review the appropriate article with a view to providing the same treatment.
VI With reference to Articles 10, 11 and 12
In determining whether dividends, interests or royalties are beneficially owned by a resident of New Zealand, dividends, interest or royalties in respect of which a trustee is subject to tax in New Zealand shall be treated as being beneficially owned by that trustee.
VII With reference to Articles 10, 11 and 12
Applications for the refund of tax levied not in accordance with the provisions of Articles 10, 11 and 12 shall be lodged with the competent authority of the State having levied the tax within a period of five years after the expiration of the fiscal year in which the tax has been levied.
VIII With reference to Article 11
The expression “any agency or any instrumentality (including a financial institution) wholly owned by that other State”
as used in paragraph 3 shall not include the Bank of New Zealand.
IX With reference to Article 12
a.
Notwithstanding the provisions of paragraph 4, payments of any kind received as a consideration for the use of, or the right to use, industrial, commercial or scientific equipment shall be deemed to be profits of an enterprise to which the provisions of Article 7 apply except to the extent the amount of such payments are based on production, sales, performance or any other similar basis related to the use of the said equipment.
b.
In respect of paragraph 4, payments received as a consideration for technical services, including studies or surveys of a scientific, geological or technical nature, or for engineering contracts including blueprints related thereto, or for consultant or supervisory services shall be deemed not to be payments received as a consideration for information concerning industrial, commercial or scientific experience.
X With reference to Articles 18 and 19
It is understood that the term “pensions and other similar remuneration”
includes only periodical payments.
XI
If, at any time after the date of signature of the Convention, New Zealand shall include an Article on non-discrimination in any of its double taxation conventions, the Government of New Zealand shall without undue delay inform the Government of the Kingdom of the Netherlands and shall enter into negotiations with the Government of the Kingdom of the Netherlands with a view to including such an Article in the Convention concluded today.
IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed this Protocol.
DONE at The Hague this 15th day of October 1980, in duplicate, in the English and Netherlands languages, both texts being equally authentic.
For the Government of New Zealand,
Brian Talboys
For the Government of the Kingdom of the Netherlands,
C A van der Klaauw