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Netherlands - India Tax Treaty (as amended by 2012 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.



(1) Profits from the operation of ships in international traffic shall be taxable only in the State in which the place of effective management of the enterprise is situated.

(2) However, if the operation of a ship in the other State is more than casual, such profits may also be taxed in that other State and according to the laws of that State, but only so much of them as is derived from that other State and provided that the profits are in respect of any one or more of the first ten fiscal years for which the Convention has effect.

For the purposes of this paragraph:

  • (a) profits derived from the other State mean profits from the carriage of passengers or freight embarked in that other State;
  • (b) the amount of such profits shall not exceed 5 per cent of the sums receivable in respect of such carriage;
  • (c) the rate of tax chargeable on such profits shall be 50 per cent of the rate of tax on that profits which would have been chargeable in the absence of this Convention.

(3) If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the State of which the operator of the ship is a resident.

(4) For the purposes of this Article:  

  • (a) interest on funds connected with the operation of ships in international traffic shall be regarded as profits from the operation of such ships and the provisions of Article 11 shall not apply in relation to such interest, and
  • (b) profits from the operation of ships include:  
    • (i) profits derived from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) in connection with the transport of goods or merchandise in international traffic;
    • (ii) profits from the rental on a full or bareboat basis of ships if operated in international traffic.
  • Provided that such profits are incidental to the profits described in paragraph 1.

(5) The provisions of the Article shall also apply to profits from the participation in a pool, a joint business or an international operating agency.