The State Tax Service informs about the amendment of the provisions of the Convention for the Avoidance of Double Taxation and Prevention of Tax Evasion with respect to taxes on income and on capital with the Kingdom of the Netherlands by means of an additional protocol.

In the text of the Convention, the notions of "permanent representation" and "resident" were adjusted, and the process of exchanging information for tax purposes is ensured according to the new requirements. Also, provisions on the limitations on abuse of benefits stipulated in the Convention were introduced, IPN reports.

Subsequently, the method of taxing dividends at the rate of 5% at the source of payment was also revised by obliging the beneficial owner to hold at least 25% of the capital of the dividend distributing company during 365 days.