At the time of signing the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital, this day concluded between the Kingdom of the Netherlands and the Republic of Suriname, the undersigned have agreed that the following provisions shall form an integral part of the Convention.
(I) Ad Article 4:
An individual living aboard a ship without any real domicile in either of the States shall be deemed to be a resident of the State in which the ship has its home harbour.
(II) Ad Article 4:
Where a company, which is established under Surinamese law for the sole or virtually sole purpose of holding all or virtually all the share capital of other companies and is deemed to be a resident of the Netherlands in accordance with the provisions of Article 4, paragraph 4, the profits which that company derives from the said holdings may be taxed in Suriname, but only at a rate of not more than 4 per cent. This provision shall not, however, affect the right of the Netherlands to levy taxes pursuant to the provisions of the Convention.
(III) Ad Article 7:
Where a company which is a resident of the Netherlands carries on its business wholly or partly in Suriname with the assistance of a permanent establishment situated therein, the tax which Suriname may levy pursuant to Article 7, paragraph 1, shall also include the tax which may be payable in Suriname in respect of transferred profits. The last-mentioned tax shall not, however, exceed 7.5 per cent of the amount transferred.
(IV) Ad Article 7:
In the application of Article 7, paragraph 3, no deduction shall be allowed in respect of amounts-except for those attributable to expenses actually incurred-which are charged by the head office of the enterprise or one of its other offices to the permanent establishment as royalties, compensation or other similar payments for the use of patents or other rights, or as commission for services rendered or for exercising management, or, except in the case of an enterprise carrying on banking operations, as interest on money made available to the permanent establishment. Similarly, in assessing the income of a permanent establishment, allowance shall not be made for amounts-except for those attributable to expenses actually incurred-which are charged by the permanent establishment to the head office of the enterprise or one of its other offices.
(V) Ad Articles 7 and 25:
The provisions of Article 7, paragraphs 2 and 3, and of Article 25, paragraph 3, shall not entitle Suriname to tax under its own laws the profits accruing to the permanent establishment of an insurance enterprise.
(VI) Ad Article 10:
The provisions of Article 10, paragraph 2, shall not apply in respect of dividends paid by a company which is a resident of Suriname to a company which is a resident of the Netherlands, if the latter company is subject in the Netherlands to corporate tax on the dividends received. In such cases the provision in Article 10, paragraph 2, sub-paragraph (c), shall apply.
(VII) Ad Articles 10, 11 and 12:
Applications for the refund of taxes collected contrary to the provisions of Articles 10, 11 and 12 must be submitted to the competent authority of the State which collected the tax within a period of five years after the end of the calendar year in which the tax was collected.
(VIII) Ad Article 21:
The competent authorities of the States may adjust the amounts specified in Article 21 by mutual agreement.
(IX) Ad Article 24:
It is understood that:
- (a) in so far as relates to the Netherlands income tax or company tax, the basis referred to in Article 24, paragraph 1, is the gross income or the profits within the meaning of the Netherlands laws relating to the income tax or the company tax, as the case may be; and
- (b) in so far as relates to the Surinamese income tax, this basis, in the case of individuals, is the gross income and, in the case of companies, the profits within the meaning of the Surinamese Ordinance on income tax.
(X) Ad Article 24:
After a period of 10 years subsequent to the entry into force of this Convention, the competent authorities shall enter into negotiations with each other in order to determine whether there are grounds for amending the provisions of Article 24, paragraphs 4, 5 and 6, of the Convention.
(XI) Ad Article 28:
Neither State shall be required to imprison any person for the purpose of collecting taxes of the other State.
IN WITNESS WHEREOF, the undersigned, duly authorized thereto, have signed this Protocol.
DONE in two originals in the Dutch language at Paramaribo on the twenty-fifth day of November 1975.
FOR THE GOVERNMENT OF THE KINGDOM OF THE NETHERLANDS:
J. M. DEN UYL
FOR THE GOVERNMENT OF THE REPUBLIC OF SURINAME:
H. A. E. ARRON