Page:United States Statutes at Large Volume 47 Part 2.djvu/1011

DOUBLE TAX-SHIPPING PROFITS-NETHERLANDS. 2601 Arrange1Mnt between the United States of America, and the Netherlands SePtee~~3i~~vem. promding relief from double income tax on shipping profits. Effected October 19. 1~J6. by exchange of notes, signed September 13, 1926, October 1!J, 1926, and NOt'ember 27, 1926. The Secretary of State (Kellogg) to the Charge d'Affaires ad interim of the Netherlands (van ll'yck) ... SIR. DEPARTMENT OF STATE, WASHINGTON, September 13, 1926. The Department infonns you of the ~eceipt of a communication o~yb~~ncor:t:s. tiU from the Treasury Department regardmg the draft of a Royal ti Re~~r:rr~mPd Decree, with English translation, to be issued by Her Majesty the t1~:Neth"lands. an Queen of the Netherlands, relative to the prevention of double taxa- tIon on income derived exclusively from the operation of ships, which was left at the Treasury Department on July 29, 1926. The English translation of the proposed decree reads as follows: "We, Wilhelmina, by the Grace of God, Queen of The N ether- lands, Princess of Orange-N assau etc. etc. "Whereas it is provided in the Unique Section of the Law of June 26,1926, (Statute book No. 209), that we reserve Ourselves under No. 2 to make provisions, on a basis of reciprocity, preventing double taxation on earnings derived from the oyeration of ships, correspond- ing with equivalent provisions existing In the laws of foreign nations; and "Whereas under Section 213, litt. b, No.8 of the Revenue Act of the United States no tax is imposed on the income of an alien individ- ual non-resident in the United States or of a foreign corporation which consists exclush-ely of earnings derived from the operation of a ship or ships documented tmder the laws of a foreign country which grants an equivalent exemption to citizens of the United States and to corporations organized in the United States, do hereby proclaim and make known: " UNIQUE SECTION "CITIZENS OF THE UNITED STATES NON·RESIDENT IN THE NETHERLANDS AND CORPORATIONS ORGANIZED IN THE UNITED STATES WHICH EFFECTUATE IN THE NETHERLANDS THE SEA TRANSPORT WITH SHIPS DOCUMENTED UNDER THE L.- \ W OF THE UNITED STATES ARE (WITH RETROACTIVE POWER TILL JANUARY 1. 1921) NOT SUBJECT TO TAXATION AS FAR AS INCOME DERIVED EXCLUSIVELY FROM SUCH INDUSTRY IS CONCERNED. " The Treasury Department states that it interprets the proposed decree as exempting from tax the income from sources WIthin the Netherlands received by citizens of the United States non-resident in the Nether1ands and by corporations organized in the United States, which consists exclusively of earnings derived from the operation of ships documented under the laws of the United States, such exemption applying to income received on or after January 1, 1921. It notes that the exemption is granted to corporations organized in the United States "ithout limiting such exemption in an~' way.