News item | 19-02-2025 | 10:31 AM
Since this year, the Netherlands has had tax treaties working with nearly 100 countries. On January 1, 2025, the treaties with Andorra and Kyrgyzstan entered into force, so that the counter is now at 98 countries. For Dutch people it is more attractive to work or do business in countries with which a tax treaty is because they usually do not have to pay a double taxation. The Netherlands is currently negotiating with 11 countries about a new tax treaty. In addition, 5 tax treaties are ready to sign or submit to the parliament.
Dutch citizens and companies work and undertake a lot across the border. Tax treaties strengthen the economic relationships between countries because it is prevented that citizens and companies prevent more than once tax on the same income or assets. For example, a tax treaty is important to determine in which country border workers pay taxes.
Negotiations
In 2025, the Netherlands is negotiating with 11 countries about a tax treaty, namely: Aruba, Belgium, Benin, Brazil, Ecuador, Mozambique, Uganda, Portugal, Romania, Suriname and Sweden. New negotiations can also be started during the year. The Ministry of Foreign Affairs (BZ) publishes an overview every quarter with the countries with which negotiations are currently ongoing. Morocco is not part of the negotiating plan this year. After a 3rd negotiation round last year, a new negotiation round turned out not to be useful and realistic in the short term.
With Germany, Spain and Thailand, an agreement has been reached earlier and a moment is planned for signing with these countries. The signed tax treaties with Bangladesh and Sint Maarten are presented to the Lower and Senate.
Fighting tax avoidance
In addition to strengthening economic relationships, the Netherlands also wants to combat international tax avoidance with tax treaties. For example, the Netherlands uses a list of low -tax countries that levy less than 9% profit tax. To prevent profits from the Netherlands from being shifted to being shifted here, anti -abuse rules, including an extra withholding tax, apply.
Existing tax treaties with these countries, such as Barbados and Bahrain, limit the Netherlands in levying this withholding tax. The Netherlands has therefore approached these countries to adjust the tax treaty. Barbados and Bahrain are now taking steps to increase the profit rate to at least 9%, so that the tax treaty probably does not have to be re -negotiated.
The Netherlands also agrees in negotiations with other countries to include the international minimum standards against treaty abuse in the tax treaty – insofar as they do not yet apply. This applies, for example, to the negotiations with Sweden, but also to the negotiations within the Kingdom of the Netherlands with Sint Maarten and Aruba.
Information
Companies and citizens who have tax information that may be important for current or intended negotiations are invited to contact the Ministry of Finance via [email protected]. The ministry can then involve that information in the negotiations. With a view to the future, information about problems of double taxes with countries other than mentioned above is also welcome.