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CHAPTER I - Scope of the Arrangement
CHAPTER II - Definitions
CHAPTER III - Taxation of Income
CHAPTER IV - Avoidance of Double Taxation
CHAPTER V - Special Provisions
CHAPTER VI - Final Provisions
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 33

EU Savings Directive

(1) For the purposes of this Article and paragraph (10) of Article 21:

  • (a) Definitions:
    • (1) the term "Directive 2003/48/EC" means Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments (OJ 2003 L 157);
    • (2) the term "beneficial owner" means a beneficial owner as defined in Article 2 of Directive 2003/48/EC;
    • (3) the term "paying agent" means a paying agent referred to in Article 4 of Directive 2003/48/EC;
    • (4) the term "interest payment" means an interest payment as defined in Article 6 of Directive 2003/48/EC, taking into account Article 15 of Directive 2003/48/EC.
  • (b) Any term not otherwise defined in this Article shall have the meaning that it has been given in Directive 2003/48/EC.
  • (c) In the provisions of Directive 2003/48/EC to which this Article and paragraph (10) of Article 21 refer, the term "Member States" shall be understood to mean the Netherlands or St. Maarten, as the context requires.

(2) Where the beneficial owner of interest is a resident of the Netherlands and the paying agent is established in St. Maarten, St. Maarten shall withhold tax at a rate of 35% during the transitional period referred to in Article 10 of Directive 2003/48/EC. The paying agent shall levy the withholding tax in the manner described in paragraphs (2) and (3) of Article 11 of Directive 2003/48/EC.

(3) The imposition of the withholding tax by St. Maarten under this Article shall not prevent the Netherlands from taxing the income in accordance with its domestic law, due regard being had to the other provisions of this Arrangement.

(4) During the transitional period referred to in paragraph (2) St. Maarten may determine that an economic operator paying interest to, or securing interest for, an entity established in the Netherlands as referred to in paragraph (2) of Article 4 of Directive 2003/48/EC shall be considered a paying agent, instead of the entity, and that St. Maarten shall levy withholding tax on such interest, unless the entity has formally agreed that its name, address and the total amount of the interest payment made to it or secured for it is communicated in accordance with the last sentence of that paragraph.

(5) St. Maarten shall retain 25% of the revenue of the withholding tax referred to in paragraph (2) and transfer 75% of the revenue to the Netherlands. If St. Maarten withholds tax in accordance with paragraph (4), St. Maarten shall retain 25% of the revenue levied on interest payments made to entities established in the Netherlands as referred to in paragraph (2) of Article 4 of Directive 2003/48/EC and transfer 75% to the Netherlands. Such transfers shall take place at the latest within a period of six months following the end of the tax year of St. Maarten. St. Maarten shall take the necessary measures to ensure the proper functioning of the revenue-sharing system.

(6) St. Maarten shall provide for one of or both of the procedures referred to in paragraph (1) of Article 13 of Directive 2003/48/EC. At the request of the beneficial owner, the competent authority of the Netherlands shall issue a certificate in accordance with paragraph (2) of Article 13 of Directive 2003/48/EC.

(7) For the purposes of this Article, St. Maarten shall adopt the procedures necessary to allow the paying agent to establish the identity and residence of the beneficial owner, and shall ensure the application of such procedures in St. Maarten. Such procedures shall comply with the minimum standards of paragraphs (2) and (3) of Article 3 of Directive 2003/48/EC, except that with respect to the provisions of sub-paragraph (a) of paragraph (2) and sub-paragraph (a) of paragraph (3), the identity and residence of the beneficial owner shall be established on the basis of the information available to the paying agent by virtue of the application of the relevant legal and administrative provisions of St. Maarten. However, any existing exemptions or reliefs that may have been granted under these provisions at the request of beneficial owners who are residents of the Netherlands shall cease to apply, and no further exemptions or reliefs of this nature shall be granted to the beneficial owners.

(8) At the end of the transitional period referred to in paragraph (2), the provisions of paragraph (3) of Article 10 of Directive 2003/48/EC shall apply accordingly.