At the moment of signing the Convention between the Government of the United States of America and the Government of the Kingdom of the Netherlands for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on estates and inheritances (hereinafter to be called the Convention), the undersigned representatives have agreed on the following provisions:
I. The provisions of the Convention shall not affect property rights under laws relating to descent, distribution, succession, inheritance or other similar matters.
II. If the meaning of a term under the laws of one State is different from the meaning of the term under the laws of the other State, or if the meaning of such a term under the laws of one or both States is not readily determinable, the competent authorities of the States may, in order to prevent double taxation or to further any ocher purpose of the Convention, establish a common meaning of the term for purposes of the Convention.
III. In construing Article 4 (3) (a), a decedent shall not be deemed to have more than one permanent home.
IV. As used in the Convention, the term “domicile” with respect to each of the States means residence for purposes of its tax.
V. The Kingdom of the Netherlands will not, for purposes of determining domicile under Article 4 of the Convention, assert its unilateral 10-year rule with respect to decedents who are citizens of the Netherlands and who were in the United States for less than 10 years, immediately preceding death, when such decedent had the intention to remain indefinitely in the United States; but this paragraph shall not affect the right of the Netherlands to tax pursuant to Article 9 of the Convention.
VI. Since it is intended by Article 4 to resolve all cases of double domicile, the competent authorities of the States shall resolve any dispute with respect to the domicile of the decedent for purposes of the Convention which is presented to one or both of them within the period of time prescribed for the filing of a claim for credit or refund under Article 12.
VII. The exemption provided by Article 10 (1) will apply before the application of the exemption provided by Article 10 (2).
VIII. It is understood that the Netherlands cannot disclose to the authorities of another country information obtained from banks and certain similar institutions, including insurance companies, except where and in so far as a bank or similar institution acts as the executor or administrator of an estate.
IX. If the effects of the Convention are substantially altered as a result of changes made in the laws of either State, then at the request of either State, the two States shall consult together with a view to making appropriate modifications in the Convention.
X. This Protocol shall be ratified together with the Convention and instruments of ratification thereof shall be exchanged at The Hague. It shall enter into force simultaneously with the Convention signed today and shall have the same duration as the Convention in accordance with Articles 16 and 18 thereof.
IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed this Protocol.
DONE in duplicate, in the English and Dutch languages, both texts being equally authentic, at Washington this 15th day of July, 1969.
FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA:
FOR THE GOVERNMENT OF THE KINGDOM OF THE NETHERLANDS: