- 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 or shall be taxable only in Algeria.
- 2
- Where a resident of the Netherlands derives items of income or owns items of capital which according to paragraphs 1, 3 and 4 of Article 6, paragraph 1 of Article 7, paragraph 1 of Article 8, paragraph 7 of Article 10, paragraph 6 of Article 11, paragraph 5 of Article 12, paragraphs 1, 2 and 3 of Article 13, paragraph 1 of Article 14, paragraphs 1 and 3 of Article 15, paragraphs 1 and 2 of Article 18, paragraph 1 (subparagraph a) of Article 19, paragraph 2 of Article 22 and paragraphs 1, 2 and 3 of Article 23 of this Convention may be taxed or shall be taxable only in Algeria and are included in the basis referred to in paragraph 1, the Netherlands shall exempt such items of income or capital by allowing a reduction of its tax. This reduction shall be computed in conformity with the provisions of the Netherlands law for the elimination of double taxation. For that purpose the said items of income or capital shall be deemed to be included in the amount of the items of income or capital which are exempt from Netherlands tax under those provisions.
- 3
- Further, the Netherlands shall allow a deduction from the Netherlands tax for the tax paid in Algeria on items of income which according to paragraphs 2 and 9 of Article 10, paragraph 2 of Article 11, paragraph 2 of Article 12, Article 16, paragraphs 1 and 2 of Article 17 and paragraph 5 of Article 18 of this Convention may be taxed in Algeria to the extent that these items of income are included in the basis referred to in paragraph 1. The amount of this deduction shall be equal to the tax paid in Algeria on these items of income, but shall, in case the provisions of the Netherlands law for the elimination of double taxation provide so, not exceed the amount of the deduction which would be allowed if the items of income so included were the sole items of income for which the Netherlands gives a deduction under the provisions of the Netherlands law for the elimination of double taxation.
- This paragraph shall not restrict allowance now or hereafter accorded by the provisions of the Netherlands law for the elimination 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 Algeria on the said items of income to subsequent years.
- 4
- Notwithstanding the provisions of paragraph 2, the Netherlands shall allow a deduction from the Netherlands tax for the tax paid in Algeria on items of income which according to paragraph 1 of Article 7, paragraph 7 of Article 10, paragraph 6 of Article 11, paragraph 5 of Article 12, paragraph 1 of Article 14 and paragraph 2 of Article 22 of this Convention may be taxed in Algeria 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 elimination of double taxation allows a deduction from the Netherlands tax of the tax levied in another country on such items of income. For the computation of this deduction the provisions of paragraph 3 of this Article shall apply accordingly.
- 5
- In Algeria, double taxation shall be eliminated as follows:
- Where a resident of Algeria derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in the Netherlands, Algeria shall deduct:
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- (i)from the tax on the income of the resident, an amount equal to the income tax paid in the Netherlands;
- (ii)from the tax on the capital of the resident, an amount equal to the capital tax paid in the Netherlands.
- Such deduction shall not, however, exceed that part of the tax on income or on capital, as computed before the deduction is given, which is attributable to the income or capital, as the case may be, which may be taxed in Algeria.
