This Convention shall apply to persons who are residents of one or both of the States. 

1. This Convention shall apply to taxes on income imposed on behalf of one of the States, irrespective of the manner in which they are levied. 

2. There shall he regarded as taxes on income all taxes imposed on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation. 

3. The existing taxes to which the Convention shall apply are in particular: 

a) in the case of the Netherlands: 
-de inkomstenbelasting (income tax), 
-de loonbelasting (wages tax), 
-de vennootschapsbelasting (company tax), 
-de dividendbelasting (dividend tax), 
(hereinafter referred to as "Netherlands tax"); 
b) in the case of Pakistan: 
-the income tax, 
-the super tax, 
-the surcharge,
(hereinafter referred to as "Pakistan tax"). 

1. For the purposes of this Convention, unless the context otherwise requires: 

a) the term "State" means the Netherlands or Pakistan, as the context requires; the terms "States" means the Netherlands and Pakistan; 
b) the term "the Netherlands" comprises the part of the Kingdom of the Netherlands that is situated in Europe and the part of the seabed and its subsoil under the North Sea, over which the Kingdom of the Netherlands has sovereign rights in accordance with international law; 
c) the term "Pakistan" used in a geographical sense means Pakistan as defined in the constitution of the Islamic Republic of Pakistan and also includes any area outside the territorial waters of Pakistan which under international law and the laws of Pakistan is an area within which the rights of Pakistan with respect to the seabed and its subsoil and their natural resources may be exercised; 
d) the term "person" includes an individual, a company and any other body of persons; 
e) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes; 
f) the terms "enterprise of one of the States" and "enterprise of the other State" mean respectively an enterprise carried on by a resident of one of the States and an enterprise carried on by a resident of the other State; 
g) the term "national" means: i. any individual possessing the nationality of one of the States; ii. any legal person, partnership and association deriving its status as such from the laws in force in one of the States; 
h) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place of effective management in one of the States, except when the ship or aircraft is operated solely between places in the other State;
i) the term "competent authority" means: 1. in the Netherlands: the Minister of Finance or his duly authorized representative; 2. in Pakistan: the Central Board of Revenue. 

1. For the purposes of this Convention, the term "resident of one of the States" means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. But this term does not include any person who is liable to tax in that State in respect only of income from sources in that State. 

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both States, then his status shall be determined as follows: 

a) he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (centre of vital interests); 
b) if the State in which he has his centre of vital interests cannot be determined, or if he has a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode; 
c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national; 
d) if he is a national of both States or of neither of them, the competent authorities of the States shall settle the question by mutual agreement. 

1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 

2. The term "permanent establishment" includes especially: 

a) a place of management; 
b) a branch; 
c) an office; 
d) a factory; 
e) a workshop; 
f) a warehouse; and 
g) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. 

4. The term "permanent establishment" shall likewise encompass the furnishing of services including consultancy services, by an enterprise through employees or other personnel, engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project) within the country for a period or periods aggregating more than four months within any twelve-month period. 

5. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include: 

a) the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise; 
b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display;
c) the maintenance of stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; 
d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; 
e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character. 

a) has and habitually exercises in that State an authority to conclude contracts for or on behalf of the enterprise, unless his activities are limited to the purchase of goods or merchandise for that enterprise; or 
b) has no such authority, but habitually maintains in that State a stock of goods or merchandise from which he regularly delivers goods or merchandise for or one behalf of the enterprise; or 
c) habitually secures orders in that State, for the sale of goods or merchandise, wholly or almost wholly for the enterprise itself or for the enterprise and other enterprises which are controlled by it or have a controlling interest in it. 

8. The fact that a company which is a resident of one of the States controls or is controlled by a company which is a resident of the other State or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other. 

1. Income derived by a resident of one of the States from immovable property (including income from agriculture or forestry) situated in the other State may be taxed in that other State. 

2. The term "immovable property" shall have the meaning which it has under the laws of the State in which the property in question is situated. The term shall in any case include property accessory to real property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property. 

3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property. 

4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services. 

1. The profits of an enterprise of one of the States shall be taxable only in that State unless the enterprise carries on business in the other State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to -

a) that permanent establishment, to -
b) sales in that other State of goods or merchandise of the same or similar kind as those sold through that permanent establishment, or to -
c) other business activities carried on in that other State of the same or similar kind as those effected through that permanent establishment. 

3. In the determination of the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the business of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. 

4. Insofar as it has been customary in one of the States to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article. 

5. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 

6. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 

7. Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article. 

1. Profits from the operation of ships or aircraft in international traffic shall be taxable only in the State in which the place of effective management of the enterprise is situated. 

2. If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the State of which the operator of the ship is a resident. 

3. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. 

1. Where -
a) an enterprise of one of the States participates directly or indirectly in the management, control or capital of an enterprise of the other State, or 
b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the States and an enterprise of the other State,  and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 

2. Where one of the States includes in the profits of an enterprise of that State - and taxes accordingly - profits on which an enterprise of the other State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the States shall, if necessary, consult each other. 

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: 

a) 10 percent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividends; 
b) 20 per cent of the gross amount of the dividends in all other cases. 

4. The term "dividends" as used in this Article means income from shares, "jouissance" shares or "jouissance" rights, mining shares, founders' shares or other rights participating in profits, as well as income from profit-sharing bonds and income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. 

5. 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 it 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. 

6. 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 s 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. 

1. Interest arising in one of the States and paid to a resident of the other State may be taxed in that other State. 

2. However, such interest may also be taxed in the State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest the tax so charged shall not exceed: 

a) 10 percent of the gross amount of the interest if the interest is received by a bank or other financial institution; 
b) 15 percent of the gross amount of the interest if the interest is paid by a company to a company (other than a partnership) which holds directly at least 25 percent of the capital of the paying company; 
c) 10 percent of the gross amount of the interest if the interest is received in virtue of a contract of financing or of delay in payment relating to the tale of industrial, commercial or scientific equipment or to the construction of industrial, commercial or scientific installations as well as of public works; 
d) 20 per cent of the gross amount of the interest in all other cases. 

a) the State Bank of Pakistan shall be exempt from Netherlands tax with respect to interest arising in the Netherlands; 
b) the Central Bank of the Netherlands shall be exempt from Pakistan tax with respect to interest arising in Pakistan; 
c) the Government of one of the States shall be exempt from the tax of the other State with respect to interest arising in that other State, if such interest is derived from loans; 
d) any financial institution owned or controlled by the Government of one of the States shall be exempt from tax of the other State with respect to interest arising in that other State, if such interest is derived from loans. 

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

6. Interest shall be deemed to arise in one of the States when the payer is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of one of the States or not, has in one of the States a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base it situated. 

7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each State, due regard being had to the other provisions of this Convention. 

1. Royalties arising in one of the States and paid to a resident of the other State may be taxed in that other State. 

2. However, such royalties may also be taxed in the State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties the tax so charged shall not exceed: 

a) 15 per cent of the gross amount of the payments referred to in paragraph 3 (a); 
b) 15 per cent of the gross amount of the payments referred to in paragraph 3 (b); 
c) 5 per cent of the gross amount of the payments referred to in paragraph 3 (c). 

a) a patent, trademark or tradename, secret formula or process, design or model, or information concerning industrial, commercial or scientific experience; 
b) industrial, commercial or scientific equipment, cinematograph films and tapes for television and broadcasting; 
c) a copyright of a literary, artistic or scientific work, but excluding cinematograph films and tapes for television or broadcasting. 

5. Royalties shall be deemed to arise in one of the States when the payer is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of one of the States or not, has in one of the States a permanent establishment or a fixed base in connection with which the contract under which the royalties are paid was concluded, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated. 

6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each State, due regard being had to the other provisions of this Convention. 

1. Gains derived by a resident of one of the States from the alienation of immovable property referred to in Article 6 and situated in the other State may be taxed in that other State. 

2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of one of the States has in the other State or of movable property pertaining to a fixed base available to a resident of one of the States in the other State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State. 

3. Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in the State in which the place of effective management of the enterprise is situated. For the purposes of this paragraph the provisions of paragraph 2 of Article 8 shall apply. 

4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3, shall be taxable only in the State of which the alienator is a resident. 

5. Notwithstanding the provisions of paragraph 4, where a person owns 25 per cent or more of the capital of a company dealing wholly or mainly with immovable property, the gains from the alienation of some or all of such shares may be taxed in the State where such immovable property is situated. 

6. Unless otherwise provided in paragraph 5, the provisions of paragraph 4 shall not affect the right of each of the States to levy according to its own law a tax on gains from the alienation of shares or "jouissance" rights in a company the capital of which is wholly or partly divided into shares and which is a resident of that State, derived by an individual who is a resident of the other State and has been a resident of the first-mentioned State in the course of the last five years preceding the alienation of the shares or "jouissance" rights. 

1. Income derived by a resident of one of the States in respect of professional services or other activities of an independent character shall be taxable only in that State except in the following circumstances, when such income may also be taxed in the other State: 

a) if he has a fixed base regularly available to him in the other State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other State; or 
b) if his stay in the other State is for a period or periods amounting to or exceeding in the aggregate 183 days in the fiscal year concerned; in that case only so much of the income as is derived from his activities performed in that other State may be taxed in that other State; or 
c) if the remuneration for his activities in the other State is paid by a resident of that State or is borne by a permanent establishment or a fixed base situated in that State and exceeds in the fiscal year Rs. 75,000 or its equivalent in Dutch currency. 

1. Subject to the provisions of Articles 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of one of the States in respect of an employment shall be taxable only in that State unless the employment is exercised in the other State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of one of the States in respect of an employment exercised in the other State shall be taxable only in the first-mentioned State if: 

a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the fiscal year of that State, and 
b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and 
c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State. 

1. Directors' fees or other remuneration derived by a resident of one of the States in his capacity as a member of the board of directors, a "bestuurder" or a "commissaris" of a company which is a resident of the other State may be taxed in that other State. 

2. Where the remuneration mentioned in paragraph 1 is derived by a person who exercises activities of a regular and substantial character in a permanent establishment situated in the State other than the State of which the company is a resident and the remuneration is deductible in determining the taxable profits of that permanent establishment, then, notwithstanding the provisions of paragraph 1 of this Article, the remuneration, to the extent to which it is so deductible, may be taxed in the State in which the permanent establishment is situated. 

1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of one of the States as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as an athlete, from his personal activities as such exercised in the other State, may be taxed in that other State. 

2. Where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the State in which the activities of the entertainer or athlete are exercised. 

1. Subject to the provisions of paragraph 2 of Article 19, any pension or other similar remuneration in consideration of past employment and any annuity paid to a resident of one of the States shall be taxable only in that State. 

2. However, where such remuneration is not of a periodical nature and it is paid in consideration of past employment in the other State, it may be taxed in that other State. 

3. The term "annuity" means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time under an obligation to make the payments in return for adequate and full consideration in money or money's worth. 

1. 
a) Remuneration, other than a pension, paid by one of the States or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority may be taxed in that State. 
b) However, such remuneration shall be taxable only in the other State if the services are rendered in that State and the individual is a resident of that State who: 

1. is a national of that State; or 
2. did not become a resident of that State solely for the purposes of rendering the services. 

3. The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions in respect of Services rendered in connection with a business carried on by one of the States or a political subdivision or a local authority thereof. 

1. Payments which a professor or teacher who is a resident of one of the States and who is present in the other State for the purpose of teaching or scientific research for a maximum period of two years in a university, college or other establishment for teaching or scientific research in that other State, receives for such teaching or research, shall be taxable only in the first-mentioned State. 

2. This Article shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons. 

1. An individual who immediately before visiting one of the States is a resident of the other State and is temporarily present in the first-mentioned State for the primary purpose of: 

a) studying at a recognised university, college or school in that first-mentioned State; or 
b) securing training as a business apprentice, shall be exempt from tax in the first-mentioned State in respect of: i. all remittances from abroad for the purpose of his maintenance, education or training, and ii. any remuneration for personal services performed in the first-mentioned State, in an amount that does not exceed 5,000 Netherlands guilders or its equivalent in Pakistan currency for any fiscal year. 

2. An individual who immediately before visiting one of the States is a resident of the other State and is temporarily present in the first-mentioned State for a period not exceeding three years for the purpose of study, research or training solely as a recipient of a grant, allowance or award from a scientific, educational, religious or charitable organization or under a technical assistance programme entered into by one of the States, a political subdivision or a local authority thereof shall be exempted from tax in the first-mentioned State on: 

a) the amount of such grant, allowance or award; and 
b) any remuneration for personal services performed in the first-mentioned State provided such services are in connection with his study, research or training or are incidental thereto, in an amount that does not exceed 5,000 Netherlands guilders or its equivalent in Pakistan currency for any fiscal year. 

a) all remittances from the last-mentioned State for the purpose of his maintenance, education or training, and 
b) any remuneration for personal services performed in the first-mentioned State, provided such services are in connection with his study or training or are incidental thereto, in an amount that does not exceed 15,000 Netherlands guilders or its equivalent in Pakistan currency. 

1. The Netherlands, when imposing tax on its residents, may include in the basis upon which such taxes are imposed the items of income which, according to the provisions of this Convention, may be taxed in Pakistan. 

2. However, where a resident of Netherlands derives items of income which according to Article 6, Article 7, paragraph 5 of Article 10, paragraph 5 of Article 11, paragraph 4 of Article 12, paragraphs 1, 2 and 5 of Article 13, Article 14, paragraph 1 of Article 15, Article 16 and Article 19 of this Convention may be taxed in Pakistan and are included in the basis referred to in paragraph 1, the Netherlands shall exempt such items by allowing a reduction of its tax. This reduction shall be computed in conformity with the provisions of Netherlands law for the avoidance of double taxation. For that purpose the said items of income shall be deemed to be included in the total amount of the items of income which are exempt from Netherlands tax under those provisions. 

3. Further, the Netherlands shall allow a deduction from the Netherlands tax so computed for the items of income which according to paragraph 2 of Article 10, paragraph 2 of Article 11, paragraph 2 of Article 12, Article 17 and paragraph 2 of Article 18 of this Convention may be taxed in Pakistan to the extent that these items are included in the basis referred to in paragraph 1. The amount of this deduction shall be equal to the tax paid in Pakistan on these items of income, but shall not exceed the amount of the reduction which would be allowed if the items of income so included were the sole items of income which are exempt from Netherlands tax under the provisions of Netherlands law for the avoidance of double taxation. 

4. Where, by reason of special incentive measures designed to promote economic development in Pakistan, the Pakistan tax actually levied on interest arising in Pakistan, which may be taxed in Pakistan according to subparagraphs (a) and (b) of paragraph 2 of Article 11 or on royalties arising in Pakistan, which may be taxed in Pakistan according to subparagraph (a) of paragraph 2 of Article 12, is lower than the tax Pakistan may levy according to those provisions, then, for the purposes of paragraph 3, the tax paid in Pakistan on these items of income shall be deemed to be: 

a) with respect to interest to which subparagraph (a) of paragraph 2 of Article 11 applies: an amount equal to the amount of tax which Pakistan actually has levied thereon increased by twice the difference between this amount and 10 per cent of the gross amount of such interest; 
b) with respect to interest to which subparagraph (b) of paragraph 2 of Article 11 applies or royalties to which subparagraph (a) of paragraph 2 of Article 12 applies: 15 per cent of the gross amount of such interest or royalties. 

6. Where a resident of one of the States derives gains which may be taxed in the other State in accordance with paragraph 6 of Article 13, that other State shall allow a deduction from its tax on such gains to an amount equal to tile tax levied in the first-mentioned State on the said gains. 

1. Nationals of one of the States shall not be subjected in tile other State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the States. 

2. The taxation on a permanent establishment which an enterprise of one of the States has in the other State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. 
This provision shall not be construed as obliging one of the States to grant to residents of the other State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents. 

3. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of one of the States to a resident of the other State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. 

4. Enterprises of one of the States, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected. 

1. Where a person considers that the actions of one or both of the States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the State of which he is a resident or, if his case comes under paragraph 1 of Article 23, to that of the State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention. 

2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the States.

3. The competent authorities of the States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 

4. The competent authorities of the States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. 

1. The competent authorities of the States shall exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Article 1. Any information received by one of the States shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Convention. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. 

2. In no case shall the provisions of paragraph 1 be construed so as to impose on one of the States the obligation: 

a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other State; 
b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other State; 
c) to supply information which would disclose any trade, business, industrial, commercial, or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public). 

1. Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements. 

2. Notwithstanding the provisions of Article 4, an individual who is a member of a diplomatic or consular mission of one of the States in the other State or in a third State shall be deemed for the purposes of the Convention to be a resident of the sending State if: 

a) in accordance with international law he is not liable to tax in the receiving State in respect of income from sources outside that State, and 
b) he is liable in the sending State to the same obligations in relation to tax on his total income as are residents of that State. 

1. The competent authorities of the States shall by mutual agreement settle the mode of application of paragraph 2 of Article 10, of paragraphs 2 and 3 of Article 11 and paragraph 2 of Article 12. 

2. The competent authorities of each of the States, in accordance with the practices of that State, may prescribe regulations necessary to carry out the other provisions of this Convention. 

1. This Convention may be extended, either in its entirety or with any necessary modifications, to the Netherlands Antilles as well as to any territory for whose international relations Pakistan is responsible, if the territory or country concerned imposes taxes substantially similar in character to those to which this Convention applies. Any such extension shall take effect from such date and subject to such modifications and conditions, including conditions as to termination, as may be specified and agreed in notes to be exchanged through diplomatic channels. 

2. Unless otherwise agreed the termination of this Convention shall not also terminate the application of this Convention to any territory or country to which it has been extended under this Article. 

1. This Convention shall enter into force on the later of the dates on which the respective Governments have notified each other in writing that the formalities constitutionally required in their respective States have been complied with, and its provisions shall have effect for taxable years and periods beginning on or after the first day of January of the year in which the Convention enters into force. 

2. Notwithstanding the provisions of paragraph 1, the provisions of Article 8 shall have effect for taxable years and periods beginning on or after the first day of January, 1970. 

This Convention shall remain in force until terminated by one of the Contracting Parties. Either Party may terminate the Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year after a period of five years from the date of entry into force of this Convention. In such event the Convention shall cease to have effect for taxable years and periods beginning after the end of the calendar year in which the notice of termination has been given. 

I. Ad Article 4

An individual living aboard a ship without any real domicile in either of the States shall be deemed to be a resident of the State in which the ship has its home harbour. 

II. Ad Article 7

In the application of paragraph 3 of Article 7 no deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the permanent establishment. Likewise, no account shall be taken, in the determination of the profits of a permanent establishment, for amounts charged (otherwise than towards reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the head office of the enterprise or any of its other offices. 

III. Ad Articles 8 and 11

Interest on funds directly connected with the operation of ships or aircraft in international traffic shall be regarded as income from the operation of such ships or aircraft; the provisions of Article 11 shall not apply in relation to such interest. 

IV. Ad Article 10

The provisions of paragraph 2(a) of Article 10 shall not apply if the company which is a resident of the Netherlands suffers Netherlands company tax on the dividends which it receives from the company which is a resident of Pakistan. In such a case, the provisions of paragraph 2(b) of Article 10 shall apply. 

V. Ad Articles 10, 11 and 12

Where tax has been levied in excess of the amount of tax chargeable under the provisions of Articles 10, 11 and 12, applications for the restitution of the excess amount of tax have to be lodged with the competent authority of the State having levied the tax, within a period of three years after the expiration of the calendar year in which the tax has been levied. 

VI. Ad Article 12

Payments received as a consideration for technical services, including studies or surveys of a scientific, geological or technical nature, or for engineering contracts including blue prints related thereto, or for consultancy or supervisory services shall be deemed to be payments to which the provisions of Article 7 or Article 14 apply. 

VII. Ad Article 14

The competent authorities of the States may by mutual agreement adapt the amount mentioned in subparagraph (c) of paragraph 1 of Article 14 of the Convention if financial and economic developments give rise to such adaptation. 

VIII. Ad Article 22

After a period of 10 years following the entry into force of the Convention the competent authorities shall consult each other in order to determine whether it is opportune to amend the provisions of paragraph 4 of Article 22 of the Convention.