- 1
- The Netherlands, when imposing tax on its residents, may include in the basis upon which such taxes are imposed the items of income or property which, according to the provisions of this Convention, may be taxed or shall be taxable only in Ukraine.
- 2
- However, where a resident of the Netherlands derives items of income or owns items of property which according to Article 6, Article 7, paragraph 7 of Article 10, paragraph 6 of Article 11, paragraph 6 of Article 12, paragraphs 1, 2 and 3 of Article 13, Article 14, paragraph 1 of Article 15, paragraphs 1 and 2 of Article 18, paragraphs 1 (subparagraph a) and 2 (subparagraph a) of Article 19, paragraph 2 of Article 22 and paragraphs 1 and 2 of Article 23 of this Convention may be taxed or shall be taxable only in Ukraine and are included in the basis referred to in paragraph 1 of this Article, the Netherlands shall exempt such items of income or property 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 property shall be deemed to be included in the total amount of the items of income or property which are exempt from Netherlands tax under those provisions.
- 3
- 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 2 of Article 11, paragraphs 2 and 3 of Article 12, paragraph 6 of Article 13, Article 16, Article 17 and paragraph 4 of Article 18 of this Convention may be taxed in Ukraine to the extent that these items are included in the basis referred to in paragraph 1 of this Article. The amount of this deduction shall be equal to the tax paid in Ukraine 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.
- 4
- Notwithstanding the provisions of paragraph 2, the Netherlands shall allow a reduction from the Netherlands tax for the tax paid in Ukraine on items of income which according to Article 7, paragraph 7 of Article 10, paragraph 6 of Article 11, paragraph 6 of Article 12, paragraph 2 of Article 13 and paragraph 2 of Article 22 of this Convention may be taxed in Ukraine to the extent that these items are included in the basis referred to in paragraph 1, insofar as the Netherlands under the provisions of the Netherlands law for the avoidance of double taxation allows a reduction from the Netherlands tax of the tax levied in another country on such items of income. For the computation of this reduction the provisions of paragraph 3 of this Article shall apply accordingly.
- 5
- Subject to the provisions of the law of Ukraine regarding the elimination of tax payable in a territory outside Ukraine (which shall not affect the general principle hereof), Netherlands tax payable under the laws of the Netherlands and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable property from sources within, or situated in, the Netherlands shall be allowed as a credit against any Ukrainian tax computed by reference to the same profits, income or property by reference to which the Ukrainian tax and the Netherlands tax are computed.
- 6
- Deductions as mentioned in paragraph 5 of this Article in either case shall not exceed that part of income tax or property tax, as computed before the deduction is given, which is attributable, as the case may be, to the income or the property which may be taxed in the Netherlands.
- 7
- Where in accordance with any provision of the Convention income derived or property owned by a resident of Ukraine is exempt from tax in Ukraine, Ukraine may nevertheless, in calculating the amount of tax on the remaining income or property of such resident, take into account the exempted income or property.
- 8
- For the purposes of paragraph 5 of this Article, profits, income and capital gains derived by a resident of Ukraine which may be taxed in the Netherlands in accordance with this Convention shall be deemed to arise from sources in the Netherlands.
