- 1
- In Finland double taxation shall be eliminated as follows:
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- a)Where a resident of Finland derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in the Netherlands, Finland shall, subject to the provisions of sub-paragraph b), allow:
- (i)as a deduction from the tax on the income of that person, an amount equal to the tax on income paid in the Netherlands;
- (ii)as a deduction from the tax on the capital of that person, an amount equal to the tax on capital paid in the Netherlands. Such deduction in either case shall not, however, exceed that part of the tax on income or on capital, as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in the Netherlands.
- b)Dividends paid by a company being a resident of the Netherlands to a company which is a resident of Finland and which controls directly at least 10 per cent of the voting power in the company paying the dividends shall be exempt from Finnish tax.
- 2
- In the Netherlands double taxation shall be eliminated as follows:
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- a)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 the Agreement, may be taxed in Finland.
- b)However, where a resident of the Netherlands derives items of income or owns items of capital which according to Article 6, Article 7, paragraph 8 of Article 10, paragraph 3 of Article 11, paragraph 3 of Article 12, paragraphs 1 and 2 of Article 13, Article 14, paragraph 1 of Article 15, paragraph 2 of Article 21 and paragraphs 1 and 2 of Article 22 may be taxed in Finland and are included in the basis referred to in sub-paragraph a) of this paragraph, 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 Netherlands law for the avoidance of double taxation. For that purpose the said items of income or capital shall be deemed to be included in the total amount of the items of income or capital which are exempt from Netherlands tax under those provisions.
- c)Further, the Netherlands shall allow a deduction from the Netherlands tax so computed for the items of income which according to paragraph 2 of Article 10, paragraph 5 of Article 13, Article 16, Article 17 and paragraph 2 of Article 18 may be taxed in Finland to the extent that these items are included in the basis referred to in sub-paragraph a) of this paragraph. The amount of this deduction shall be equal to the tax paid in Finland on these items of income, but shall not exceed the amount of the reduction which would be allowed if the items of income so included were the sole items of income which are exempt from Netherlands Tax under the provisions of Netherlands law for the avoidance of double taxation.
- 3
- Where in accordance with any provisions of the Agreement income derived or capital owned by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.
