previous
next

(b) Computation of Tax and Deductions

16. The tax is levied, on the whole of the net taxable income computed as described above, at progressive rates (see Annex).

17. Abatement of tax is granted to a resident if he dies or leaves N.E.I., and to a non-resident if he ceases to derive income from one of the sources mentioned in paragraph 9. Abatement is also granted to residents, but not to non-residents, in case of suspension of a trade or a profession, or discharge from an office, or other exceptional circumstances, if evidence is given that, through these circumstances, the taxed net income differs more than one-quarter from the amount the taxpayer really earned during the tax-year.

18. In order to prevent double taxation, a resident taxpayer who also pays tax in the Netherlands, Surinam or Curaçao, may deduct from his N.E.I. tax on total income the amount of tax which would be due on the part of his income derived from those countries. The Governor-General is authorised to issue ordinances in consonance with provisions in the legislation of other countries, effecting total or partial relief from double taxation, on condition of reciprocity (Netherlands Law of June 14th, 1930, Official Gazette, No. 244, published in N.E.I. Official Gazette 1930, No. 310). Non-resident individuals and partnerships are not taxable on profits derived from shipping between ports in N.E.I. and abroad (Income-Tax Ordinance, 1932, effective January 1st, 1933).

previous
next