Artikel V

1. It is understood, that, with respect to dividends as meant in paragraph 3 of Article 10 which are paid by a company which is a Netherlands resident, if according to the law in force in the Macedonian Contracting State taxation of such dividends in the Macedonian Contracting State will result in a tax burden of less than 15% of the gross amount of the dividends, the Netherlands Contracting State may levy a tax not exceeding 15% of the gross amount of the dividends.
2. However, it is further understood that the provisions under paragraph 1 above do not apply if the dividends are paid by a company which is a Netherlands resident and the beneficial owner of the dividends is a company which is a Macedonian resident and either:
a) the capital of the company receiving the dividends is exclusively beneficially owned by the Macedonian Government or local authority thereof; or
b) shares in such company are regularly traded on the Macedonian Stock Exchange; or
c) the company receiving the dividends is engaged in an active trade or business in the Macedonian Contracting State.
3. In case a company does not fulfill one of the conditions laid down in paragraph 2 above, the provisions of paragraph 1 above shall also not apply with respect to such company if it is established in mutual agreement by the competent authorities of the Contracting States, in conformity with Article 27 of the Convention, that such company is not established or maintained in the Macedonian Contracting State mainly for the purpose of ensuring the benefits of paragraph 3 of Article 10 of the Convention and provided that the company receiving the dividends is a Macedonian resident and the beneficial owner of the dividends.