CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. South Africa And Netherlands Sign Protocol Amending Treaty

South Africa And Netherlands Sign Protocol Amending Treaty

by Robert Lee, Tax-News.com, London

11 July 2008


South Africa's Finance Minister, Trevor Manuel and Rob de Vos, Ambassador of the Netherlands in South Africa, signed a protocol amending the tax convention between the Netherlands and South Africa in Pretoria on Tuesday.

The Protocol amends the tax convention between the Netherlands and South Africa signed in Pretoria in October 2005 which has not yet come into force.

The earlier convention was ratified in the Netherlands, but not in South Africa, and because of an amendment of the tax law in South Africa, the government requested an amendment of the tax convention.

The government of the Netherlands accepted South Africa’s request for renegotiation of the convention. As a result of the renegotiations South Africa and the Netherlands have concluded the most recent protocol.

The convention concerns taxes on income and on capital gains, and is intended to avoid double taxation. In addition, the convention is intended to prevent fiscal evasion and to provide for an exchange of fiscal information.

It replaces the old tax convention of 1971, and improves the conditions for investment in both South Africa and the Netherlands.

According to the Dutch Finance Ministry:

"The most important benefits for the Netherlands are no withholding tax on interest, a source state taxation on pensions, including lump sum payments, an arbitration clause and a residence provision for pension funds. A 5% withholding tax on participation dividends and a 10% withholding tax on portfolio dividends is applicable. Furthermore, an extended article on exchange on information and on assistance in recovery in conformity with the OECD Model Convention 2005 has been inserted."

"As a result of the signing of this protocol the tax convention can be ratified in South Africa as well. The protocol has yet to be submitted for parliamentary ratification in the Netherlands."

The Netherlands is currently the fifth largest destination of South African exports. South Africa is the main trading partner of the Netherlands in Africa, with exports totalling EUR1.6bn in 2007.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »