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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 24

Elimination of Double Taxation

(1) Each of the States, when imposing tax on its residents, may include in the basis upon which such taxes are imposed the items of income or capital which, according to the provisions of this Convention, may be taxed in the other State.

(2) Without prejudice to the application of the provisions concerning the compensation of losses in its respective regulations for the avoidance of double taxation, each of the States shall allow a deduction from the amount of tax computed in conformity with paragraph 1 of this Article equal to such part of that tax which bears the same proportion to the aforesaid tax as the part of the income or capital included in the basis mentioned in paragraph 1 of this Article and taxed in the other State in accordance with Articles 6, 7 and 10 (paragraph 5), Article 11 (paragraph 5), Article 12 (paragraph 4), Article 14 (paragraphs 1 and 2), Articles 15 and 16 (paragraph 1), Articles 17 and 20 (paragraph 1) and Article 23 (paragraphs 1 and 2) of the Convention bears to the total income or capital which forms the basis mentioned in paragraph 1 of this Article.

(3) Each of the States shall, moreover, allow a deduction from the tax computed in accordance with the preceding paragraphs of this Article with respect to the items of income which may be taxed in the other State in accordance with Article 10, paragraph 2, Article 12, paragraph 2, and Article 18 and are included in the basis mentioned in paragraph 1 of this Article. The amount of this deduction shall be the lesser of the following amounts:

  • (a) the amount equal to the tax charged in the other State;
  • (b) the amount equal to the part which bears the same proportion to the amount of tax computed in conformity with paragraph 1 of this Article as the amount of the said items of income which forms the basis mentioned in paragraph 1 of this Article.

(4) Where, by reason of relief given under the provisions of the Surinamese Investments Ordinance or on the basis of any other special legislation for promoting the economic development of Suriname, the Surinamese tax actually levied on dividends paid by a company which is a resident of Suriname and operates solely or almost solely as a bank or whose activities are chiefly concerned with agriculture, crops, forestry, fisheries, livestock, mining, industry, transport, public housing, tourism, infrastructure or any other production sector, amounts to less than the tax which Suriname could have levied under Article 10, paragraph 2, sub-paragraph (c), the amount equal to the tax levied in Suriname on the dividends shall, for the purpose of the application by the Netherlands of paragraph 3 of this Article, be deemed to be 20 per cent of the gross amount thereof.

(5) Where, by reason of relief given under the Surinamese Investments Ordinance or on the basis of any other special legislation for promoting the economic development of Suriname, the Surinameese tax actually levied on interest arising in Suriname as provided for in Article 11, paragraph 2, sub-paragraph (b), which is owed by a company operating solely or almost solely as a bank or by an enterprise whose activities are carried out chiefly in the sectors specified in paragraph 4 of this Article, amounts to less than the tax which Surinamee could have levied under Article 11, paragraph 2, sub-paragraph (b), the amount equal to the tax levied in Surinamee on the interest, shall, for the purpose of the application by the Netherlands of paragraph 3 of this Article, be deemed to be the amount of the tax actually levied by Suriname thereon, increased by twice the difference between such amount and 10 per cent of the gross amount of the interest.

(6) With respect to interest, as mentioned in Article 11, paragraph 2, sub-paragraph (a), and royalties, as mentioned in Article 12, paragraph 2, sub-paragraph (b), arising in Suriname, the amount equal to the Surinamese tax levied on the interest or royalties, as the case may be, shall, for the purpose of the application by the Netherlands of paragraph 3 of this Article, be deemed to be 15 per cent of the gross amount thereof.

Where, however, by reason of relief given under the provisions of the Surinamese Investments Ordinance or on the basis of any other special legislation for promoting the economic development of Suriname, the Surinamese tax actually levied on the interest or on the royalties, as the case may be, is less than 5 per cent of the gross amount thereof, the percentage of 15 shall be raised by one percentage point for each percentage point below 5 levied by Surinamee.

(7) The provisions of paragraphs 4, 5 and 6 of this Article shall not impose on the Netherlands any obligation to allow, in respect of the Surinameese tax on dividends, as mentioned in paragraph 4, or on interest, as mentioned in paragraph 5, or on royalties, as mentioned in paragraph 6, as the case may be, a deduction from the Netherlands tax larger than the tax which Suriname under its laws would have levied on the dividends, interest or royalties, as the case may be, in the absence of this Convention or of the obligations laid down in the Surinamese Investments Ordinance or in any other special legislation for the economic development of Suriname.

(8) Where a resident of one of the States derives gains which may be taxed in the other State in accordance with Article 14, paragraph 5, that other State shall allow a deduction from its tax on such gains up to an amount equal to the tax levied in the first-mentioned State on the said gains.