Overeenkomst tussen het Koninkrijk der Nederlanden en het Koninkrijk Saoedi-Arabië tot wederzijdse vrijstelling van belastingen geheven naar de inkomsten en winsten van luchtvaartondernemingen uit de uitoefening van luchtvervoer in internationaal verkeer en hun werknemers

1. This Agreement shall apply to taxes on income and profits imposed on behalf of each Contracting State, irrespective of the manner in which they are levied.
2. There shall be 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 property and taxes on the total amounts of wages or salaries paid by air transport enterprises.
3. The existing taxes on which the Agreement shall apply are in particular:
a. in the case of the Netherlands, de inkomstenbelasting (income tax), de vennootschapsbelasting (company tax), (hereinafter referred to as “Netherlands tax”);
b. in the case of the Kingdom of Saudi Arabia, the income tax, (hereinafter referred to as “Saudi tax”).
4. This Agreement shall also apply to any identical or substantially similar taxes as are subsequently imposed in addition to, or in place of the existing taxes. The competent authorities of the Contracting States shall notify each other of any substantial changes which are made in their respective taxation laws.

1. In this Agreement, unless the context otherwise requires:
a. the terms “a Contracting State” and “the other Contracting State” means the Kingdom of the Netherlands or the Kingdom of Saudi Arabia, as the context requires; the term “Contracting States” means the Kingdom of the Netherlands and the Kingdom of Saudi Arabia;
b. as regards the Kingdom of the Netherlands, the present Agreement shall apply to the part of the Kingdom which is situated in Europe only;
c. the term “tax” means “Netherlands tax” or “Saudi tax” as the context requires;
d. the terms “air transport enterprise of a Contracting State” and “air transport enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State, which is designated by Air Transport Agreement between the Kingdom of the Netherlands and the Kingdom of Saudi Arabia;
e. the term “exercise of air transport” means the operational activity of transportation by air of persons, animals, goods and mail conducted by an air transport enterprise of a Contracting State including sale of tickets and similar documents used for the purpose of transportation;
f. the terms “international traffic” mean any transport by aircraft, owned, leased or chartered, operated by an air transport enterprise of a Contracting State, except when such transport is made solely between places in the other Contracting State;
g. the term “competent authority” means: i) in the case of the Netherlands, the Minister of Finance or his authorised representative; however with respect to social security legislation on ministers responsible for such legislation and their authorised representatives;
ii) in the case of the Kingdom of Saudi Arabia, the Ministry of Finance & National Economy;
i) in the case of the Netherlands, the Minister of Finance or his authorised representative; however with respect to social security legislation on ministers responsible for such legislation and their authorised representatives;
ii) in the case of the Kingdom of Saudi Arabia, the Ministry of Finance & National Economy;
h. the term “resident of a Contracting State” means any person, who under the law of that State, is liable to taxation therein by reason of his domicile, residence, place of management or any other criterion of a similar nature;
i. the term “person” includes an individual, a company and any other body of persons.
2. As regards the application of the Agreement by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to which the Agreement applies.

1. Income and profits derived by an air transport enterprise of a Contracting State from the exercise of air transport in international traffic shall be exempted from tax in the other Contracting State.
2. The provisions of paragraph 1 shall also apply to income and profits derived by an air transport enterprise of a Contracting State from its participation in a pool or a joint air transport operation.
3. For the purpose of this Article, income and profits derived by an air transport enterprise of a Contracting State from the exercise of air transport in international traffic include income derived by that enterprise from activities connected with and incidental to the operational activity of transportation by air, such as:
a. income from the rental, lease or maintenance of aircraft,
b. income from training schemes, management and other services rendered by an air transport enterprise of a Contracting State to an air transport enterprise of the other Contracting State,
c. interest or similar earnings on funds directly connected with the operation of aircraft in international traffic.

1. Remuneration derived in respect of an employment exercised abroad an aircraft operated in international traffic shall be taxable only in the Contracting State in which the air transport enterprise is situated.
2. Remuneration derived by an employee of an air transport enterprise of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in that other State, unless the employee is a national of the first-mentioned State. In that case, such remuneration shall be taxable only in the first-mentioned State, provided that the number of such employees shall not exceed two and the period of time during which they reside in the other State, does not exceed five years. The date on which this Agreement will become effective is the date on which the first period of five years will commence. The social security legislation of the other State shall not be applicable to such employees; consequently they cannot derive rights from that legislation.

The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of this Agreement. A request for a mutual agreement procedure shall be substantiated in detail within 90 days from the date of receipt of that request.

This Agreement shall enter into force on the thirtieth day after the latter 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 the taxable years and period beginning on or after the first day of January 1988.

This Agreement shall remain in force until terminated by one of the Contracting States. Either Contracting State may terminate the Agreement, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year. In such event the Agreement shall cease to have effect for any taxable year or period beginning after the end of the calendar year in which the notice of termination has been given.