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The Netherlands: Conclusion A-G on application of Article 17 of the OECD Model Convention to the basis salary

Following a number of Court of Appeal cases the Advocate General to the Netherlands Supreme Court had the opportunity to give his opinion on the application of provisions such as Article 17 of the OECD Model Convention to the basic salary which a professional sportsmen receives from his employer. The Court cases concerned a soccer player, a cyclist and an ice skater. The Court of Appeal of ?s-Hertogenbosch had held that Article 17 was indeed applicable and that therefore the sportsmen where entitled to application of exemption (with progression) for the basic salary attributable to foreign activities. The Court of Amsterdam had held that a professional ice skater was not entitled to such exemption. The Advocate-General confirmed in July 2005 the position of the Court of Apepal of ?s-Hertogenbosch, and held that the sportsmen were entitled to exemption (with progression) regarding the basic salary attributable to sports activities undertaken outside the Netherlands (and in countries with which the Netherlands had concluded tax treaties which provide for such exemption). The A-G produced a quite extensive report in which he explains the lines of his reasoning. The final decision of the Supreme Court is to be awaited.

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