Netherlands (tax/treaty)

Termination 1. This Convention shall remain in force indefinitely but either Contracting States may terminate this Convention through diplomatic channels, by giving the other Contracting State written notice of termination not later than 30 June of any calendar year starting ten years after the year in which this Convention entered into force. 2. In such event the provisions of this Convention shall apply for the last time: a. in respect of taxes withheld at source, to amounts paid on or before 31 December of the calendar year in which the notice of termination of this Convention was given; b. in respect of other taxes on income, to taxes chargeable for any taxable period beginning on or before 31 December in the calendar year in which the notice of termination of this Convention was given. IN WITNESS WHEREOF the undersigned, being duly authorized thereto, have signed this Convention. DONE in duplicate at Riyadh on 13/10/1429 corresponding to 13/10/2008 in the Arabic, Netherlands, and English languages, all texts being equally authentic. In case of divergence of interpretation, the English text shall prevail. For the Government of For the Government of Netherlands the Kingdom of Saudi Arabia Minister of Economic Affairs Acting Minister of Finance Maria van der Hoeven Abdulaziz ibn Abdullah Al-Kho PROTOCOL At the moment of signing the Convention for the avoi೦dance of double taxation and the prevention of tax evasion with respect to taxes on income, this day concluded between the Government of the Kingdom of Saudi Arabia and the Government of the Kingdom of the Netherlands, the undersigned have agreed that the following provisions shall form an integral part of the Convention. I. Ad Article 4 1. The competent authorities will by mutual agreement settle which legal persons may be considered as residents of a Contracting State as meant in sub-paragraph c (i) of paragraph 1 of Article 4. 2. An individual living aboard a ship without any real domicile in either of the Contracting States shall be deemed to be a resident of the Contracting State in which the ship has its home har೦bour. II.Ad Article 5 The following are also deemed to be a permanent establishment: 1. Any substantial activity (such as maintenance, training and installation) included in a contract for export of goods and merchandise carried on in a Contracting State. However, the business profits derived from the export of the goods and merchandise shall not be subject to tax in that Contracting State. 2. Any offshore activities (defined as activities carried on on the continental shelf of a Contracting State in connection with the exploration or exploitation of the seabed and its sub-soil and their natural resources). 3. The rights to explore or extract and exploitation rights of natural resources, including rights to interests in, or to the benefits of, assets to be produced by such exploration or exploitation/extraction. III.Ad Article 7 1. In the case of contracts for survey, constructions, supply or installations, the profits of a permanent establishment shall not be determined on the total amount of the contract, but shall be determined only on the basis of that part of the contract, which is effectively carried out by the permanent establishment in the State where the permanent establishment is situated. Any portion of the contract executed outside the Contracting State in which the permanent establishment is situated shall not be taken into consideration in determining the profits of that permanent establishment. 2. Each Contracting State may apply its domestic legislation with regard to insurance activities. IV. Ad Article 9