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- 1. The provisions of this Article shall apply notwithstanding any other provisions of this Convention.
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- 2. In this Article the term “offshore activities” means activities which are carried on offshore in a Contracting State in connection with the exploration or exploitation of the seabed and its subsoil and their natural resources, situated in that Contracting State.
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- 3. An enterprise of a Contracting State which carries on offshore activities in the other Contracting State shall, subject to paragraph 4 of this Article, be deemed to carry on, in respect of those activities, business in that other State through a permanent establishment situated therein, unless the offshore activities in question are carried on in the other State for a period or periods not exceeding in the aggregate 30 days in any twelve month period.
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- For the purposes of this paragraph:
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- (a) where an enterprise carrying on offshore activities in the other Contracting State is associated with another enterprise and that other enterprise carries on substantially similar offshore activities to those which are or were being carried on by the first-mentioned enterprise, and the aforementioned activities carried on by both enterprises when added together exceed a period of 30 days, then each enterprise shall be deemed to be carrying on its activities for a period exceeding 30 days in any twelve month period;
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- (b) an enterprise shall be regarded as associated with another enterprise if one holds directly or indirectly at least one third of the capital of the other enterprise or if a person holds directly or indirectly at least one third of the capital of both enterprises.
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- 4. However, for the purposes of paragraph 3 of this Article the term “offshore activities” shall be deemed not to include:
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- (a) one or any combination of the activities mentioned in paragraph 4 of Article 5 of this Convention;
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- (b) towing or anchor handling by ships primarily designed for that purpose;
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- (c) the transport of supplies or personnel by ships or aircraft.
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- 5. Gains derived by a resident of one of the States from the alienation of rights to assets to be produced by the exploration or exploitation of the sea bed and subsoil and their natural resources situated in the other State, including rights to interest in or to the benefit of such assets, or from the alienation of shares deriving their value or the greater part of their value directly or indirectly from such rights, may be taxed in that other State.
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- 6.
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- (a) Subject to sub-paragraph (b) of this paragraph, salaries, wages and other similar remuneration derived by a resident of one of the States in respect of an employment connected with offshore activities in the other State may, to the extent that the employment is exercised offshore in that other State, be taxed in that other State.
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- (b) Salaries, wages and other similar remuneration derived by a resident of one of the States in respect of an employment exercised aboard a ship or aircraft, to the profits from the operation of which subparagraphs (b) or (c) of paragraph 4 of this Article applies, shall be taxable only in the State of which the employee is a resident.
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- 7. Where tax has been paid in the United Kingdom on the items of income or gains which may be taxed in the United Kingdom according to Articles 7 and 14 of this Convention in connection with paragraph 3 of this Article and according to paragraph 5 and 6, subparagraph (a), of this Article, the Netherlands shall allow a reduction of its tax which shall be computed in conformity with the rules laid down in paragraph 2 of Article 21 of this Convention.