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Netherlands - Iraq Tax Treaty (2019, not yet in force) — 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.

ARTICLE 20

Elimination of Double Taxation

(1) The Netherlands may include in the basis upon which such taxes are imposed on its residents, the items of income which, according to the provisions of this Convention, may be taxed in the Republic of Iraq.

(2) However, where a resident of the Netherlands derives items of income which according to paragraphs (1), (4) and (5) of Article 6, paragraph (1) of Article 7, paragraph (8) of Article 10, paragraph (6) of Article 11, paragraph (5) of Article 12, paragraphs (1) and (2) of Article 13, paragraph (1) of Article 14, paragraphs (1) and (2) of Article 16, paragraphs (1) (sub-paragraph (a) and (2) (sub-paragraph (a) of Article 17 and paragraph (2) of Article 19 of this Convention may be taxed in the Republic of Iraq and are included in the basis referred to in paragraph (1), 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 the Netherlands law for the avoidance of double taxation. For that purpose the said items of income shall be deemed to be included in the amount of the items of income which are exempt from Netherlands tax under those provisions.

(3) Further, the Netherlands shall allow a reduction 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 (1) of Article 15 and paragraph (4) of Article 16 of this Convention may be taxed in the Republic of Iraq to the extent that these items are included in the basis referred to in paragraph (1). The amount of this reduction shall be equal to the tax paid in the Republic of Iraq on these items of income, but shall, in case the provisions of the Netherlands law for the avoidance of double taxation provide so, not exceed the amount of the reduction which would be allowed if the items of income so included were the sole items for which the Netherlands gives a reduction under the provisions of the Netherlands law for the avoidance of double taxation.

This paragraph shall not restrict allowance now or hereafter accorded by the provisions of the Netherlands law for the avoidance of double taxation, but only as far as the calculation of the amount of the reduction of Netherlands tax is concerned with respect to the aggregation of income from more than one country and the carry forward of the tax paid in the Republic of Iraq on the said items of income to subsequent years.

(4) Notwithstanding the provisions of paragraph (2), the Netherlands shall allow a reduction from the Netherlands tax for the tax paid in Iraq on items of income which according to paragraph (1) of Article 7, paragraph (8) of Article 10, paragraph (6) of Article 11, paragraph (5) of Article 12 and paragraph (2) of Article 19 of this Convention may be taxed in the Republic of Iraq to the extent that these items are included in the basis referred to in paragraph (1), insofar as the Netherlands under the provisions of the Netherlands law for the avoidance of double taxation allows a reduction from the Netherlands tax of the tax levied in another country on such items of income. For the computation of this reduction the provisions of paragraph (3) of this Article shall apply accordingly.

(5) In the Republic of Iraq double taxation shall be eliminated as follows:

  • The Republic of Iraq, when imposing taxes on its residents, may include in the tax base upon which such taxes are imposed the items of income which according to the provisions of this Convention may also be taxed in the Netherlands, but shall allow as a deduction from the amount of tax computed on such a base an amount equal to the tax paid in the Netherlands. Such deduction shall not, however, exceed that part of the tax of the Republic of Iraq, as computed before the deduction is given, which is appropriate to the income which, in accordance with the provisions of this Convention, may be taxed in the Netherlands.