Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
933079
XXXXXXXXXX T.B. Kuss
February 16, 1994
Dear XXXXXXXXXX:
Re: Protocol to the Canada-Netherlands Income Tax Convention
This is in reply to your letter dated October 18, 1993 regarding the Protocol to the Canada-Netherlands Income Tax Convention signed March 4, 1993 (the "Protocol").
Although the Protocol has been signed, it has not yet been ratified by the respective governments. As a result, the Protocol is not in force. When the Protocol is ratified it will be effective for tax withheld at source with respect to amounts paid on or after January 1, 1993. Under the Protocol the withholding tax rate on interest is limited to 10% of the gross amount of the interest.
Until the Protocol comes into force the appropriate withholding rate on interest is 15%. An application for a refund of the withholding tax not paid in accordance with the Canada-Netherlands Income Tax Convention (ie. interest payments on or after January 1, 1993, but before the Protocol comes into force, taxed at 15%) must be made within the later of two years from the end of the calendar year in which the tax was withheld and two years from the time the Protocol comes into force.
We hope our comments are of assistance.
Yours truly,
for Director
Reorganizations and Foreign Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1994
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© Sa Majesté la Reine du Chef du Canada, 1994
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