- 1
- Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration, as well as annuities, arising in a State and paid to a resident of the other State may be taxed in the first-mentioned State.
- 2
- Pensions paid and other payments made under the provisions of the social security legislation of a State to a resident of the other State may be taxed in the first-mentioned State.
- 3
- A pension, other similar remuneration or an annuity shall be deemed to arise in a State insofar as the contributions or payments associated with that pension or other similar remuneration or annuity, or the entitlements received from that pension or other similar remuneration or annuity qualified for relief from tax in that State.
- 4
- The term “annuity” means:
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- a)in the case of an annuity arising in the Netherlands, an annuity as mentioned in the Netherlands Income Tax Act 2001 (“Wet inkomstenbelasting 2001“), or any subsequent identical or substantially similar laws or regulations replacing this act, the benefits of which are part of taxable income from employment and dwellings (“belastbaar inkomen uit werk en woning”);
- b)in the case of annuities arising in Denmark, a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time under an obligation to make the payments in return for adequate and full consideration in money or money’s worth.
- 5
- For the purpose of this Article contributions and payments are considered to have qualified for relief from tax where:
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- a)contributions paid to a pension fund, insurance company or any other similar institution were deducted from the taxable income of a taxpayer; or
- b)contributions paid by an employer were not taxable income of a taxpayer.
- 6
- The provisions of this Article shall also apply in case a lump sum payment is made in lieu of a pension or an other similar remuneration or an annuity before the date on which the pension or other similar remuneration or the annuity commences.
