Adjustment in agreement for avoidance of double taxation between Hong Kong and the Netherlands
donderdag, 08 juli 2010
The Secretary for Financial Services and the Treasury of Hong Kong, Professor K.C. Chan, and the Minister of Finance of the Netherlands, Mr J.C. de Jager, signed a comprehensive agreement for avoidance of double taxation (hereinafter: CDTA) between the Hong Kong Special Administrative Region and the Kingdom of the Netherlands (hereinafter: the Agreement) on March 22nd, 2010.
After the publication of the CDTA, by means of an Exchange of Notes, the Hong Kong Special Administrative Region and the Kingdom of the Netherlands have agreed upon replacing paragraph 3 of Article 10. The amended text clarifies that also bank and insurance companies, as well as international headquarters companies can only be entitled to the withholding tax rate for participation dividends of 0%, if they hold at least 10% of the share capital of the company paying the dividends. As the adjusted text of paragraph 3 of Article 10 of the Agreement implies that a few references in Article VII of the Protocol to the Agreement have become incorrect, the latter article has been adjusted also.
Furthermore, the drafting of paragraph 3 of Article 5 of the Agreement and paragraph 3, subparagraph b, of Article VII of the Protocol to the Agreement has been improved. The amended complete treaty text has been published in Trb. 2010, 198.
