- 1
- In the case of Kosovo:
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- a)Where a resident of Kosovo derives income which, in accordance with the provisions of this Convention, may be taxed in Netherlands, Kosovo shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax on income in the Netherlands. Such deduction shall not, however, exceed that part of the Kosovo tax, as computed before the deduction is given, which is attributable, as the case may be, to the income which may be taxed in Netherlands.
- b)Where in accordance with any provision of the Convention income derived by a resident of Kosovo is exempt from tax in Kosovo, Kosovo may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.
- 2
- In the case of the Netherlands:
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- a)The Netherlands may include in the basis upon which taxes are imposed on its residents, the items of income which according to the provisions of this Convention may be taxed or shall be taxable only in Kosovo. In such cases, however, the Netherlands shall allow a reduction of or a deduction from the Netherlands tax according to the provisions of sub-paragraphs b, c, d, e and f.
- b)Where a resident of the Netherlands derives items of income which according to paragraphs 1, 3 and 4 of Article 6, paragraph 1 of Article 7, paragraph 6 of Article 10, paragraph 5 of Article 11, paragraph 3 of Article 12, paragraphs 1 and 2 of Article 13, paragraph 1 of Article 14, paragraphs 1 and 2 of Article 17, paragraphs 1 and 2 of Article 18 and paragraph 2 of Article 20 of this Convention may be taxed or shall be taxable only in Kosovo, and are included in the basis referred to in sub-paragraph a, the Netherlands shall exempt such items of income by allowing a reduction of its tax. This reduction shall be computed in conformity with the provisions of the Netherlands law for the elimination of double taxation. For that purpose the said items of income shall be deemed to be included in the amount of the items of income which are exempt from Netherlands tax under those provisions.
- c)The provisions of sub-paragraph b shall not apply to items of income derived by a resident of the Netherlands where Kosovo applies the provisions of this Convention to exempt such items of income from tax or applies the provisions of paragraph 2 of Article 10 or paragraph 2 of Article 11 to such items of income. In such case, the provisions of sub-paragraph e shall apply accordingly.
- d)Notwithstanding the provisions of sub-paragraph b, the Netherlands shall allow a deduction from the Netherlands tax for the tax paid in Kosovo on items of income which according to paragraph 1 of Article 7, paragraph 6 of Article 10, paragraph 5 of Article 11, paragraph 3 of Article 12 and paragraph 2 of Article 20 of this Convention may be taxed in Kosovo, to the extent that these items of income are included in the basis referred to in sub-paragraph a, insofar as the Netherlands under the provisions of the Netherlands law for the elimination of double taxation allows a deduction from the Netherlands tax of the tax levied in another country on such items of income. For the computation of this deduction the provisions of sub-paragraph e of this Article shall apply accordingly.
- e)Where a resident of the Netherlands derives items of income which according to paragraph 2 of Article 10, paragraph 2 of Article 11, paragraph 5 of Article 13, paragraph 1 of Article 15, paragraphs 1 and 2 of Article 16 and paragraph 5 of Article 17 of this Convention may be taxed in Kosovo, the Netherlands shall allow a deduction from its tax to the extent that these items are included in the basis referred to in sub-paragraph a. The amount of this deduction shall be equal to the tax paid in Kosovo on these items of income, but shall, in case the provisions of the Netherlands law for the elimination of double taxation provide so, not exceed the amount of the deduction which would be allowed if the items of income so included were the sole items for which the Netherlands gives a reduction under the provisions of the Netherlands law for the elimination of double taxation.
- f)The provisions of sub-paragraph e shall not restrict allowance now or hereafter accorded by the provisions of the Netherlands law for the elimination of double taxation, but only as far as the calculation of the amount of the deduction from the Netherlands tax is concerned with respect to the aggregation of income from more than one jurisdiction and the carry forward of the tax paid in Kosovo on the said items of income to subsequent years.
