- 1
- In case of activities covered by this Article, its provisions shall apply notwithstanding any other provisions of this Convention. However, this Article shall not apply where offshore activities of a person constitute for that person a permanent establishment under the provisions of Article 5 or a fixed base under the provisions of Article 14.
- 2
- In this Article the term “offshore activities" means activities which are carried on offshore in connection with the exploration or exploitation of the sea bed and its subsoil and their natural resources, situated in one of the States.
- 3
- An enterprise of one of the States which carries on offshore activities in the other State shall, subject to paragraph 4 of this Article, be deemed to be carrying on, in respect of those activities, business in that other State through a permanent establishment situated therein, unless the offshore activities in question are carried on in the other State for a period or periods not exceeding in the aggregate 30 days in any period of 12 months.
- For the purposes of this paragraph:
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- a)where an enterprise carrying on offshore activities in the other State is associated with another enterprise and that other enterprise continues, as part of the same project, the same offshore activities that are or were being carried on by the first-mentioned enterprise, and the afore-mentioned activities carried on by both enterprises - when added together - exceed a period of 30 days, then each enterprise shall be deemed to be carrying on its activities for a period exceeding 30 days in a 12 months-period;
- b)an enterprise shall be regarded as associated with another enterprise if one holds directly or indirectly at least one third of the capital of the other enterprise or if a person holds directly or indirectly at least one third of the capital of both enterprises.
- 4
- However, for the purposes of paragraph 3 of this Article the term “offshore activities" shall be deemed not to include one or any combination of the activities mentioned in paragraph 4 of Article 5.
- 5
- Profits derived by a resident of one of the States from the transportation of supplies or personnel to a location, or between locations, where activities in connection with the exploration or exploitation of the sea bed and subsoil and their natural resources are being carried on in one of the States, or from the operation of tugboats and other vessels auxiliary to such activities, shall be taxable only in the State in which the place of effective management of the enterprise is situated.
- 6
- A resident of one of the States who carries on offshore activities in the other State, which consist of professional services or other activities of an independent character, shall be deemed to be performing those activities from a fixed base in the other State if the offshore activities in question last for a continuous period of 30 days or more.
- 7
- Salaries, wages and other similar remuneration derived by a resident of one of the States in respect of an employment connected with offshore activities carried on through a permanent establishment in the other State may, to the extent that the employment is exercised offshore in that other State, be taxed in that other State.
- 8
- Salaries, wages and other similar remuneration derived by an individual who is a resident of one of the States in respect of an employment exercised aboard a ship or aircraft covered by paragraph 5 shall be taxed in accordance with paragraph 3 of Article 15.
- 9
- Where documentary evidence is produced that tax has been paid in Denmark on the items of income which may be taxed in Denmark according to Article 7 and Article 14 in connection with respectively paragraph 3 and paragraph 6 of this Article, and to paragraph 7 of this Article, the Netherlands shall allow a reduction of its tax which shall be computed in conformity with the rules laid down in paragraph 2 of Article 23.
