At the moment of signing the Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, this day concluded between the Government of the Kingdom of the Netherlands and the Government of the People’s Republic of China, the undersigned have agreed that the following provisions shall form an integral part of the Agreement.
- 1.Ad Article 1It is understood that a person who is established in the Netherlands and treated as a tax exempt investment institution under the Netherlands company tax law shall not be entitled to the benefits of this Agreement.
- 2.Ad paragraph 2 of Article 3 and Article 25It is understood that, if the competent authorities of the Contracting States have, by mutual agreement, reached a solution within the context of the Agreement for cases in which
- a)application of paragraph 2 of Article 3 with respect to the interpretation of a term not defined in the Agreement, or
- b)differences in qualification (for example of an element of income or of a person)would result in double taxation or double exemption, this solution, after publication thereof by both competent authorities, shall also be binding for the application of the provisions of the Agreement in other similar cases in the future.
- 3.Ad Articles 6, 13 and 22It is understood that rights to the exploration and exploitation of natural resources shall be regarded as immovable property located in the Contracting State to whose territorial sea, and any area beyond the territorial sea, including the seabed and subsoil thereof – within which that State, in accordance with international law and its internal law, exercises jurisdiction or sovereign rights – these rights apply.
- 4.Ad Article 7It is understood that in the case of profits from survey, supply, installation or construction activities, only so much of these profits shall be attributable to a permanent establishment as results from the functions performed, assets used and risks assumed at or through the permanent establishment.
- 5.Ad Article 8The provisions of Article 8 of this Agreement shall not affect the provisions of Article 8 of the Agreement between the Government of the Kingdom of the Netherlands and the Government of the People’s Republic of China relating to maritime shipping, signed at Beijing on 14 August 1975, nor the provisions of paragraph 2 of Article 10 of the Agreement between the Government of the Kingdom of the Netherlands and the Government of the People’s Republic of China relating to civil air transport, signed at Beijing on 20 January 1979, nor the provisions of the letters exchanged on 14 December 2004 and 21 December 2004 between the Embassy of the Kingdom of the Netherlands and the State Administration of Taxation of the People’s Republic of China relating to the reciprocal exemption from taxation on revenue arising from international transportation by air transport enterprises.
