- 1
- The Netherlands, when imposing tax on its residents, may include in the basis upon which such taxes are imposed the items of income which, according to the provisions of this Convention, may be taxed in Zimbabwe.
- 2
- However, where a resident of the Netherlands derives items of income which according to Article 6, Article 7, paragraph 5 of Article 10, paragraph 7 of Article 11, paragraph 5 of Article 12, paragraphs 1 and 2 of Article 13, Article 14, paragraphs 1 and 3 of Article 15, Article 16, paragraph 2 of Article 18, Article 19 and paragraph 2 of Article 22 of this Convention may be taxed in Zimbabwe and are included in the basis referred to in paragraph 1 of this Article, 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 Netherlands law for the avoidance of double taxation. For that purpose the said items of income shall be deemed to be included in the total amount of the items of income 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, paragraph 2 of Article 12, paragraph 4 of Article 13, Article 17 and paragraph 1 of Article 18 of this Convention may be taxed in Zimbabwe 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 Zimbabwe 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
- Subject to the provisions of the law of Zimbabwe regarding the allowance as a credit against Zimbabwean tax of tax payable in a territory outside Zimbabwe (which shall not affect the general principle hereof), Netherlands tax payable under the law of the Netherlands and in accordance with the provisions of this Convention, whether directly or by deduction, in respect of taxable income or chargeable gains from sources within the Netherlands shall be allowed as a credit against any Zimbabwean tax computed by reference to the same taxable income or chargeable gains by reference to which Netherlands tax is computed.
- 5
- For the purposes of paragraph 4 of this Article, in determining the taxes on income paid to the Netherlands, the investment premiums and bonuses and desinvestment payments as meant in the Wet Investeringsrekening (the Netherlands Investment Account Law) shall not be taken into account. For the purposes of this paragraph, the taxes referred to in paragraph 3 a and 4 of Article 2 shall be considered taxes on income.
- 6
- For the purposes of paragraph 4 of this Article, taxable income and chargeable gains owned by a resident of Zimbabwe which may be taxed in the Netherlands in accordance with the provisions of this Convention shall be deemed to arise from sources within the Netherlands.
