Artikel VII

1. Notwithstanding the provisions of paragraph 1 of Article 18 of the Agreement, pensions and other similar remuneration and annuities as meant in that paragraph, arising in a Contracting State and paid to a resident of the other Contracting State, may also be taxed in the first-mentioned State and according to the law of that State but only in case the total gross amount of such pension and other remuneration and annuity paid in any calendar year exceeds 12.000 Dutch guilders or the equivalent in Croatian currency.
2. The provisions of paragraph 1 shall also apply, where such remuneration is not of a periodical nature or where instead of the right of annuities a lump sum is paid.
3. In case pensions and other similar remuneration and annuities may be taxed in accordance with the provisions of paragraphs 1 and 2, as the case may be, in the Contracting State in which they arise, the other Contracting State, with a view to avoid double taxation, shall apply the provisions of paragraphs 1 and 2 respectively 3 (subparagraphs a) and c) of Article 23 of the Agreement, as the case may be.