811.512356Shipping/28

The Secretary of State to the Netherlands Chargé ( Van Asch van Wyck )

Sir: Referring to your note of October 19, 1926, and to other correspondence in regard to the double taxation of income derived exclusively from the operation of ships, it affords me pleasure to inform you that I have received from the Acting Secretary of the Treasury a letter dated November 8, 1926,2 from which the following is quoted:

“Inasmuch as the Netherlands Government has promulgated the Royal Decree in the form in which it was submitted to this Department, [Page 762] and has informed this Government that the Treasury Department’s interpretation of the Royal Decree is correct, it is held that the Netherlands satisfies the equivalent exemption requirements of Section 213 (b) (8) of the Revenue Acts of 1921, 1924 and 1926. Consequently, the income of a non-resident alien or a foreign corporation which consists exclusively of earnings derived from the operation of a ship or ships documented under the laws of the Netherlands is exempt from income tax imposed by the Revenue Acts of 1921, 1924, and 1926.”

Accept [etc.]

For the Secretary of State:
Leland Harrison
  1. Not printed.