United States Netherlands Income Tax Treaty

Under these treaties residents not necessarily citizens of foreign countries may be eligible to be taxed at a reduced rate or exempt from u s.

United states netherlands income tax treaty. The united states has income tax treaties or conventions with a number of foreign countries under which residents but not always citizens of those countries are taxed at a reduced rate or are exempt from u s. Netherlands is liable to tax therein by reason of his domicile residence place of management or any other criterion of a similar nature. This term however does not include any person who is liable to tax in the netherlands in respect only of income from sources in the netherlands. To avoid that you pay tax on your income or your capital more than once the netherlands has concluded tax treaties with a considerable number of countries.

Of the netherlands desiring to amend the convention between the united states of america and the kingdom of the netherlands for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income signed at washington on december 18 1992 as. The convention provides maximum withholding rates of tax at source on payments of dividends interest and royalties which are generally the same as those both in the u s. The convention would replace the 1948 income tax convention between the united states and the netherlands which was last amended in 1965. As citizens they still need to pay us income tax as specified in the us tax code.

This treaty can help determine if a particular income is tax exempt or not in the netherlands. Model and in the existing. If you have problems opening the pdf document or viewing pages download the latest version of adobe acrobat reader for further information on tax treaties refer also to the treasury department s tax treaty documents page. Overview the united states has income tax treaties with a number of foreign countries.

If the treaty does not cover a particular kind of income or if there is no treaty between your country and the united states you must pay tax on the income in the same way and at the same rates shown in the instructions for the applicable u s. Amounts subject to withholding tax under chapter 3 generally fixed and determinable annual or periodic income may be exempt by reason of a treaty or subject to a reduced rate of tax. It is important to take note that the provisions of the tax treaty do not lower the taxes due to the united states by expats even though they live overseas. Income taxes on certain income profit or gain from sources within the united states.

The complete texts of the following tax treaty documents are available in adobe pdf format. Most income tax treaties contain what is known as a saving clause which prevents a citizen or resident of the united states from using the provisions of a tax treaty in order to avoid taxation of u s. The contents of the treaties are not the same for every country.