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Netherlands, Japan Tax Treaty Ratified

by Ulrika Lomas,, Brussels

14 December 2011

The Dutch finance ministry has announced that the new bilateral tax treaty between Japan and the Netherlands will be effective from January 1, 2012, following the recent exchange of notes between the Japanese Ambassador and the Dutch State Secretary for Finance.

In its release, the Dutch finance ministry notes that the new treaty, signed in Tokyo on August 25, 2010, will serve to benefit trade and industry as it provides for a reduction of taxation at source between the two countries, thus making it more attractive for Dutch companies to do business in Japan, and for Japanese companies to invest in the Netherlands.

The ministry states that the treaty “strengthens even further the position of the Netherlands as the gateway to Europe for Japanese companies”.

The Dutch ministry points out that the bilateral treaty with Japan is the second bilateral treaty with a major trading partner to have been drastically modernized. The new bilateral treaty with the United Kingdom became effective at the beginning of 2011.

Welcoming ratification of the treaty with Japan, the Dutch State Secretary underscored that the low source taxation provided for in the treaty will further reduce tax barriers for businesses, and increase legal certainty for taxpayers, ending by noting that: “The treaty will benefit Japan and the Netherlands for many years to come.”

TAGS: tax | business | double tax agreement (DTA) | Netherlands | law | agreements | Japan

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