New Zealand - Dividend

Article 10. Dividends

1.  Dividends paid by a company which is a resident of one of the States to a resident of the other State may be taxed in that other State. 

2.  However, such dividends may also be taxed in the State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed 15 per cent of the gross amount of the dividends. 

3.  The competent authorities of f the States shall by mutual agreement settle the mode of application of paragraph 2. 

4.  The provisions of paragraph 2 shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. 

5.  The term "dividends" as used in this Article means: 

a.  in the case of the Netherlands, income which is subject to dividend tax; 

b.  in the case of New Zealand, income from shares and other income assimilated to income from shares by the taxation laws of New Zealand. 

6.  The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of one of the States, carries on business in the other State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply. 

7.  Where a company which is a resident of one of the States derives profits or income from the other State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State. 

Protocol:

V. With reference to Articles 10, 11 and 12

If in any future double taxation convention with any other country, being a member of the Organisation for Economic Co-operation and Development, New Zealand should limit its taxation at source on dividends, interest and royalties to a rate lower than the one provided for in any of such articles, New Zealand shall without undue delay enter into negotiations with the Netherlands to review the appropriate article with a view to providing the same treatment.

VI.  With reference to Articles 10, 11 and 12

In determining whether dividends, interest or royalties are beneficially owned by a resident of New Zealand, dividends, interest or royalties in respect of which a trustee is subject to tax in New Zealand shall be treated as being beneficially owned by that trustee.

VII. With reference to Articles 10, 11 and 12

Applications for the refund of tax levied not in accordance with the provisions of Articles 10, 11 and 12 shall be lodged with the competent authority of the State having levied the tax wit p in a period of five years after the expiration of the fiscal year in which the tax has been levied.