Rev. Rul. 65-16

Article I(1) of the protocol/2/ of October 23, 1963, to the tax convention between the United States and the Kingdom of the Netherlands, T.D. 5778, C.B. 1950-1, 92, as extended to the Netherlands Antilles, C.B. 1956-2, 1116, provides that Articles VII, VIII, and IX of the convention shall not apply to income derived from sources within the United States by any investment or holding company, corporation, limited partnership, or other entity entitled to any of the special tax benefits provided under Article 13, Article 14, or Article 14A of the Netherlands Antilles National Ordinance on Profit Tax of 1940, as in effect on September 1, 1963, or to substantially similar tax benefits granted under any law of the Netherlands Antilles enacted after such date.

Held , a Netherlands Antilles corporation electing to be taxed, with respect to all of its income from United States sources, under Article 8A of the National Ordinance on Profit Tax of 1940, as added by the National Ordinance of December 30, 1963, will not be entitled to tax benefits which are substantially similar (within the meaning of Article I(1) of the protocol) to those provided under Articles 13, 14, or 14A, and therefore may be entitled to benefits accorded by Articles VII, VIII, and IX of the tax convention between the United States and the Kingdom of the Netherlands, as extended to the Netherlands Antilles.