1. Dividends paid by a company which is a resident of a Contracting Party to a resident of the other Contracting Party may be taxed in that other Contracting Party.

2. However, such dividends may also be taxed in the Contracting Party of which the company paying the dividends is a resident and according to the laws of that
    Contracting Party, but if the beneficial owner of the dividends is a resident of the other Contracting Party, the tax so charged shall not exceed 10 per cent of the
    gross amount of the dividends.

3. Notwithstanding the provisions of paragraph 2, the Contracting Party of which the company paying the dividends is a resident shall not levy a tax on dividends
    paid by that company, if the beneficial owner of the dividends is:

   a) a company, other than a partnership, which is a resident of the other Contracting Party and holds directly at least 10 per cent of the capital of the company
       paying the dividends, provided that:
   (i)  the shares of the company receiving the dividends are regularly traded on a recognised stock exchange;
   (ii) at least 50 per cent of the shares of the company receiving the dividends is owned by a company the shares of which are regularly traded on a recognised
        stock exchange, but only if the last mentioned company:
    A) is a resident of either Contracting Party; or
    B) is a resident of a member State of the European Union (EU) and that company would be entitled to similar or more favourable benefits as provided by this
        Article pursuant to a comprehensive arrangement for the avoidance of double taxation between its State of residence and the Contracting Party from which
        the benefits of this Article are claimed or pursuant to a multilateral agreement to which its State of residence and the Contracting Party from which the 
        benefits of this Article are claimed are a party;
   (iii) the company is a bank or insurance company that is established and regulated as such under the laws of the Contracting Party of which it is a resident; or
   (iv) the company is a headquarters company for a multinational corporate group which provides a substantial portion of the overall supervision and  
        administration of the group and which has, and exercises, independent discretionary authority to carry out these function
    b) a Contracting Party, or a political subdivision or local authority thereof;
    c) an institution created by the Government of a Contracting Party, or a political subdivision or local authority thereof, which is recognised as an integral part of
       that Government as shall be agreed by mutual agreement of the competent authorities of the Contracting Parties;
    d) a pension fund or scheme as referred to in paragraph 2 of Article 4; or
    e) a company which does not qualify under the conditions mentioned under (i), (ii), (iii) or (iv) of subparagraph (a) or a company other than a company
         mentioned under subparagraph (c), provided that the competent authority of the Contracting Party which has to grant the benefits determines that the
         establishment, acquisition or maintenance of the company does not have as its main purpose or one of its main purposes to secure the benefits of this 
         Article.

4. The competent authorities of the Contracting Parties shall by mutual agreement settle the mode of application of these limitations.

5. The provisions of paragraphs 2 and 3 shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

6. The term “dividends” as used in this Article means income from shares, “jouissance” shares or “jouissance” rights, mining shares, founders' shares or other
    rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as
     income from shares by the laws of the Contracting Party of which the company making the distribution is a resident.

7. The provisions of paragraphs 1, 2, 3 and 9 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting Party, carries on business
     in the other Contracting Party, of which the company paying the dividends is a resident, through a permanent establishment situated therein and the holding
     in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

8. Where a company which is a resident of a Contracting Party derives profits or income from the other Contracting Party, that other Contracting Party may not
    impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other Contracting Party or insofar as the
    holding in respect of which the dividends are paid is effectively connected with a permanent establishment situated in that other Contracting Party, 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 Contracting Party.

9. Notwithstanding the provisions of paragraphs 1, 2 and 8, dividends paid by a company whose capital is divided into shares and which under the laws of a
    Contracting Party is a resident of that Contracting Party, to an individual who is a resident of the other Contracting Party may be taxed in the first-mentioned
    Contracting Party in accordance with the laws of that Contracting Party, if that individual – either alone or with his or her spouse – or one of their relations by
    blood or marriage in the direct line directly or indirectly holds at least 5 per cent of the issued capital of a particular class of shares in that company.

The above information is the wording of the article dealing with the withholding tax on dividends of the tax treaty between The Netherlands and Hong Kong.  Please note that the ultimate withholding tax rate may differ from the treaty rate, for instance as consequence of domestic anti-abuse legislation, provisions of the treaty protocol, etc. Before you use this information we therefore strongly recommend that you consult us to determine the accurate withholding tax rate for your specific situation. If you require our follow up, you can contact us via e-mail or call us at our offices: Ph. + 31 (10) 2010466.