Pensions, annuities, social security payments and alimony
- 1
- Pensions, annuities and other similar payments, as well as lump sum payments out of a pension plan or arising on the surrender, cancellation, redemption, sale or other alienation of an annuity, and any pension and other payment paid under the provisions of a social security system, arising in one of the States and paid to a resident of the other State may be taxed in that other State.
- 2
- However, such income may also be taxed in the State in which it arises, and according to the law of that State, but in the case of periodic payments the tax so charged shall not exceed 15 per cent of the gross amount thereof which is taxable under the law of that State.
- 3
- Benefits under the Old Age Security Act of Canada and war pensions allowances (including pensions and allowances paid to war veterans or paid as a consequence of a war) arising in Canada and paid to a resident of the Netherlands may be taxed in Canada in accordance with the law of Canada.
- 4
- Alimony and other similar payments arising in one of the States and paid to an individual who is a resident of the other State shall be taxable only in that other State.
