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Germany - Netherlands Tax Treaty (as amended through 2021 protocol) — Orbitax Tax Hub
Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.


Application of the Convention in Special Cases

(1) This convention shall not be interpreted to mean that each Contracting State is prevented from applying its domestic legal provisions on the prevention of tax evasion or tax avoidance.

(2) Upon request of the taxpayer the competent authorities shall consult each other pursuant to paragraph (3) of Article 25, if the domestic legal provisions referred to in paragraph (1) result in double-taxation or if the taxpayer considers the taxation to be not in accordance with the provisions of this Convention.

*(3) If:

  • (a) a company from a Contracting State draws revenues from the other Contracting State and the former Contracting State regards these revenues as revenues which can be attributed to a business location of that company located in a third country or area and
  • (b) the profits, which can be allocated to this business location are tax exempt in the former State, the concessions of this agreement do not apply to earnings on which less than 60 percent of the tax is collected on earnings on the third State or area, which would have been collected on these revenues in the first State, if this business location were located in the first State. In this case, the revenues to which this paragraph applies can, irrespective of the other provisions of the agreement, will continue to be taxed according to the domestic law of the other State.

*(4) Paragraph (3) does not apply if the revenues from the other State come from a business activity actively performed by the business location or are linked to such business activity (with the exception of execution, administration or simple possession of capital investments on the company’s account, unless these are banking transactions, insurance transactions or securities transactions carried out by a bank, an insurance company or a registered securities trader).

*(5) If concessions under this agreement are refused with respect to certain revenues of a person resident in a Contracting State on the basis of Paragraph (3), the responsible authority of the other Contracting State can grant these concessions nevertheless, if this responsible authority determines on a request from this resident person, that granting these concessions is justified in light of the reasons for which this resident person does not fulfil the preconditions of Paragraph (3) (for example, current losses). The responsible authority of the Contracting State, in which a request is submitted under Sentence (1), will consult the responsible authority of the other Contracting State before it approves or rejects the request.

*(6) Irrespective of the other provisions of this agreement, a concession under the agreement will not be granted for certain revenues, if, taking into consideration all relevant facts and conditions, the conclusion is justified that receiving this concession was one of the main purposes of an arrangement or transactions which directly or indirectly led to this concession, unless it is demonstrated that the granting of this concession under these conditions is in agreement with the objective and purposes of the relevant provisions of the agreement.