811.512356 Double/1
The Netherland Minister (Van Haersma de With) to the Secretary of State
Sir: I have the honor, acting on instructions from my Government, to inform Your Excellency that the Netherland Indian Government [Page 607] has issued an ordinance dated the 5th of May 1934 (Indian Official Gazette No. 291) giving general rules authorizing the Netherlands Indian Tax Administration to enter into arrangements with Foreign Governments, on a basis of reciprocity, for the prevention of double taxation.
The Ordinance is substantially to the same effect as the Decree issued by the Netherland Minister of Finance of April 17, 1928 (Official Gazette No. 76) which is applied by the Netherland Tax Administration to the United States of America and other countries.
In accordance with the above regulations the Netherland Indian Government observes as from January 1, 1934 the requirements of reciprocity prescribed by the laws of the United States, as regards persons living in Netherlands India who derive income from sources situated in this country and my Government would very much like to know whether by doing so Article 695 of the Regulation 77 of the Income Tax Revenue Act 193235 has been complied with and if therefore, the United States Authorities can grant residents of the United States, also as from January 1, 1934, exemption from the taxes in question in so far as they concern income derived from sources within Netherlands India.
For the convenience of the United States Authorities concerned, I enclose the text of the Ordinance in question with a translation into English.36
I should feel obliged if Your Excellency would enable me to reply to my Government’s enquiry, so that, if your answer is in the affirmative, the Governor General of Netherlands India can indicate the United States of America as one of the countries with which an agreement has been reached for the prevention of double taxation, in accordance with Article 6 of the Ordinance in question.
Please accept [etc.]