Pensions, Annuities, Social Security Payments, Alimony and Maintenance Payments
- 1
- Subject to the provisions of paragraph 2 of Article 18, pensions and other similar remuneration (including a lump sum payment) in consideration of past employment or self-employment, and annuities (including a lump sum payment), arising in a Contracting Party and paid to a resident of the other Contracting Party may be taxed in the first-mentioned Contracting Party.
- 2
- Pensions and other payments paid out under the social security legislation of a Contracting Party to a resident of the other Contracting Party may be taxed in the first-mentioned Contracting Party.
- 3
- Pensions and other similar remuneration (including a lump sum payment) and annuities (including a lump sum payment) shall be deemed to arise in a Contracting Party:
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- a)in the case of the Netherlands, insofar as the contributions or payments associated with the pensions, other similar remuneration or annuities, or the entitlements received from them qualified for relief from tax in the Netherlands;
- b)in the case of Hong Kong Special Administrative Region, if paid out of a pension scheme where such pension scheme is recognised for tax purposes or regulated in accordance with the laws of the Hong Kong Special Administrative Region.
- The transfer of a pension or other similar remuneration, or an annuity from a pension fund or an insurance company in a Contracting Party to a pension fund or an insurance company in any place outside that Contracting Party shall not restrict in any way the taxing rights of the first-mentioned Contracting Party under this Article.
- 4
- The term “annuity” means 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 purposes of this Article in the case of the Hong Kong Special Administrative Region,
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- a)a pension scheme means an arrangement in which individuals may participate in order to secure retirement benefits, and
- b)a pension scheme is recognised for tax purposes if contributions to the scheme qualify for tax relief.
- 6
- Periodic payments, made pursuant to a written separation agreement or a decree of divorce, separation maintenance, or compulsory support, including payments for the support of a child, as well as lump sum payments in lieu thereof, paid by a resident of a Contracting Party to a resident of the other Contracting Party, shall not be taxable in either Contracting Party if the payer is not entitled in the first-mentioned Contracting Party to deduction from tax for any such payments. However, if the payer is entitled in the first-mentioned Contracting Party to deduction from tax for any such payments, such payments may be taxed in either Contracting Party.
