Australian Tax Treaties

Netherlands Agreement  

Netherlands Protocol (No 2)  

ARTICLE 3  

(1)    
This Protocol, which shall form an integral part of the Agreement, shall enter into force on the first day of the second month after the date on which the Contracting States exchange notes through the diplomatic channel notifying each other that the last of such things has been done as is necessary to give this Protocol the force of law in Australia and in the Kingdom of the Netherlands respectively, and thereupon this Protocol shall have effect -

(a) in relation to income from debt claims of every kind, excluding bonds or debentures, secured by mortgage of real property or of any other direct interest in or over land, in pursuance of a contractual obligation entered into before the date of signature of this Protocol -

(i) in Australia, in respect of tax on income of any year of income beginning on or after the date of commencement of the eighteenth month following that in which signature of the Protocol occurs;

(ii) in the Netherlands, in respect of taxes for taxable years and periods beginning on or after the date of commencement of the eighteenth month following that in which signature of the Protocol occurs;

(b) in any other case, including those referred to in paragraph (2) -

(i) in Australia, in respect of tax on income of any year of income beginning on or after 1 July 1986;

(ii) in the Netherlands, in respect of taxes for taxable years and periods beginning on or after 1 January 1986.

(2)    
Subparagraph (1)(a) does not apply in relation to -

(a) income which is derived before the commencement of the first year of income or the first taxable year or period, as the case may be, determined in accordance with that subparagraph, to the extent to which that income is attributable to that or any subsequent year or period; or

(b) income derived pursuant to a contractual obligation where the terms of that obligation are varied, after the date of signature of this Protocol, so as to extend or have the effect of extending the date on which repayment of the relevant debt is due.