#### Article 27. Offshore Activities
- 1 The provisions of this Article shall apply notwithstanding any other provision of
this Convention. However, this Article shall not apply where offshore activities of
a person constitute for that person a permanent establishment under the provisions
of [Article 5](#Verdrag_2_Verdragtekst_1_HoofdstukII_Artikel5) (Permanent Establishment) or a fixed base under the provisions of [Article 15](#Verdrag_2_Verdragtekst_1_HoofdstukIII_Artikel15) (Independent Personal Services).
- 2 In this Article the term “offshore activities” means activities which are carried
on offshore in connection with the exploration or exploitation of the sea bed and
its sub-soil and their natural resources, situated in one of the States.
- 3 An enterprise of one of the States which carries on offshore activities in the other
State shall, subject to paragraph 4, be deemed to be carrying 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 a calendar year.
For the purposes of this paragraph:
- a) where an enterprise carrying on offshore activities in the other State is associated
with another enterprise and that other enterprise continues, as part of the same project,
the same offshore activities that are or were being carried on by the first-mentioned
enterprise, and the afore-mentioned 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 a calendar year;
- 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.
- 4 However, for the purposes of paragraph 3, the term “offshore activities” shall be
deemed not to include:
- a) one or any combination of the activities mentioned in [paragraph 4 of Article 5](#Verdrag_2_Verdragtekst_1_HoofdstukII_Artikel5) (Permanent Establishment);
- b) towing or anchor handling by ships primarily designed for that purpose and any other
activities performed by such ships; or
- c) the transport of supplies or personnel by ships or aircraft in international traffic.
- 5 A resident of one of the States who carries on offshore activities in the other State,
which consist of professional services or other activities of an independent character,
shall be deemed to be performing those activities from a fixed base in the other State
if the offshore activities in question last for a continuous period of 30 days or
more.
- 6 Salaries, wages and other similar remuneration derived by a resident of one of the
States in respect of an employment connected with offshore activities carried on through
a permanent establishment in the other State may, to the extent that the employment
is exercised offshore in that other State, be taxed in that other State.
- 7 Where documentary evidence is produced that tax has been paid in the United States
on the items of income that may be taxed in the United States according to [Article 7](#Verdrag_2_Verdragtekst_1_HoofdstukIII_Artikel7) (Business Profits) or [Article 15](#Verdrag_2_Verdragtekst_1_HoofdstukIII_Artikel15) (Independent Personal Services) in connection with respectively paragraph 3 or paragraph
5 of this Article, and according to paragraph 6 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 25](#Verdrag_2_Verdragtekst_1_HoofdstukIV_Artikel25) (Methods of Elimination of Double Taxation).