- 1
- In Liechtenstein, double taxation shall be eliminated as follows:
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- a)Where a resident of Liechtenstein derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed or shall be taxable only in the Netherlands, Liechtenstein shall, subject to the provisions of subparagraph b), exempt such income or capital from tax, but 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.
- b)Where a resident of Liechtenstein derives items of income which, in accordance with the provisions of Articles 10, 14, 15 and 16 may be taxed in the Netherlands, Liechtenstein shall credit against Liechtenstein tax on this income the tax paid in accordance with the law of the Netherlands and with the provisions of this Convention. The amount of tax to be credited shall not, however, exceed the Liechtenstein tax due on the income derived from the Netherlands.
- 2
- In the Netherlands, double taxation shall be eliminated as follows:
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- a)The Netherlands may include in the basis upon which taxes are imposed on its residents, the items of income or capital which according to the provisions of this Convention may be taxed or shall be taxable only in Liechtenstein.
- b)Where a resident of the Netherlands derives items of income or owns items of capital which according to paragraphs 1, 3 and 4 of Article 6, paragraph 1 of Article 7, paragraph 1 and 3 of Article 8, paragraph 7 of Article 10, paragraph 4 of Article 11, paragraph 4 of Article 12, paragraphs 1, 2, 3 and 4 of Article 13, paragraph 1 of Article 14, paragraphs 1 and 2 of Article 17, paragraph 1 of Article 18, paragraph 2 of Article 20 and paragraphs 1, 2 and 3 of Article 21 of this Convention may be taxed or shall be taxable only in Liechtenstein, and are included in the basis referred to in subparagraph a), 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 the Netherlands law for the elimination of double taxation. For that purpose the said items of income or capital shall be deemed to be included in the amount of the items of income or capital which are exempt from Netherlands tax under those provisions.
- c)The provisions of subparagraph b) shall not apply to items of income derived or of capital owned by a resident of the Netherlands where Liechtenstein applies the provisions of this Convention to exempt such items of income or capital from tax or applies the provisions of paragraph 2 of Article 10 to such items of income or capital.
- d)Notwithstanding the provisions of subparagraph b) and c), the Netherlands shall allow a deduction from the Netherlands tax for the tax paid in Liechtenstein on items of income which according to paragraph 1 of Article 7, paragraph 7 of Article 10, paragraph 4 of Article 11, paragraph 4 of Article 12, paragraph 4 of Article 13 and paragraph 2 of Article 20 of this Convention may be taxed in Liechtenstein, to the extent that these items of income are included in the basis referred to in subparagraph 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 jurisdiction on such items of income. For the computation of this deduction the provisions of subparagraph e) of this Article shall apply accordingly.
- e)Where a resident of the Netherlands derives items of income which according to paragraphs 2 and 9 of Article 10, 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 Liechtenstein, the Netherlands shall allow a deduction from its tax to the extent that these items are included in the basis referred to in subparagraph a). The amount of this deduction shall be equal to the tax paid in Liechtenstein 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 subparagraph 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 reduction of 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 Liechtenstein on the said items of income to subsequent years.
