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Application of the MLI to the Tax Treaty between Japan and the Netherlands

  The MLI enters into force for Japan on January 1, 2019, and for the Netherlands on July 1, 2019.
  Based on the reservations and notifications submitted by Japan on September 26, 2018 and by the Netherlands on March 29, 2019, the MLI applies to the tax treaty between Japan and the Netherlands as described below.

1. Tax treaty covered by the MLI
- “Convention between Japan and the Kingdom of the Netherlands for the Avoidance of Double Taxation and the
   Prevention of Fiscal Evasion with respect to Taxes on Income”
   Date of signature: August 25, 2010
   Date of entry into force: December 29, 2011

2. Provisions of the MLI applicable to the tax treaty
- Article 4(1) (Provisions that provide rules for determining whether a person other than an individual shall be treated
  as a resident of one of the Contracting Jurisdictions for the purposes of the tax treaty)
- Article 5(2) (Provisions that limit application of exemption method for elimination of double taxation)
  * These provisions are applicable only to a resident of the Netherlands.
- Article 6(1) (Preamble language describing the intent of the Contracting Jurisdictions that the tax treaty will not create
  opportunities for non-taxation or reduced taxation)
- Article 6(3) (Preamble language referring to a desire of the Contracting Jurisdictions to develop their economic
  relationship and to enhance their co-operation in tax matters)
- Article 7(1) (Provisions that deny the benefits under the tax treaty where the principal purpose or one of the principal
  purposes of any arrangement or transaction was to obtain those benefits)
- Article 9(1) (Provisions regarding requirements for determining whether shares or interests of entities derive their
  value principally from immovable property)
- Article 10(1) to (3) (Provisions that deny the benefits under the tax treaty with respect to a certain income attributable
  to a permanent establishment situated in a third jurisdiction)
- Article 13(2) (Provisions regarding an activity that is deemed not to constitute a permanent establishment even if the
  activity is carried on through a fixed place of business)
- Article 13(4) (Provisions for combining business activities carried on by closely related persons for the purpose of
  determining whether a permanent establishment exists)
- Article 15 (Provisions for the definition of a person closely related to an enterprise)
- Article 16(1), 1st sentence (Provisions for presentation of a case of taxation not in accordance with the provisions of
  the tax treaty for a mutual agreement procedure)
- Article 17(1) (Provisions regarding corresponding adjustments to taxation in accordance with arm’s length principle)

3. Entry into effect
(a) The provisions of the MLI shall have effect in each Contracting Jurisdiction with respect to the tax treaty between
     Japan and the Netherlands:
  (i) with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving
        rise to such taxes occurs on or after January 1, 2020; and
  (ii) with respect to all other taxes levied by that Contracting Jurisdiction, for taxes levied with respect to taxable
        periods beginning on or after January 1, 2020.
(b) Notwithstanding (a), Article 16 (Mutual Agreement Procedure) shall have effect with respect to the tax treaty
     between Japan and the Netherlands for a case presented to the competent authority of a Contracting Jurisdiction
     on or after July 1, 2019, except for cases that were not eligible to be presented as of that date under the tax treaty
     between Japan and the Netherlands prior to its modification by the MLI, without regard to the taxable period to
     which the case relates.