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Netherlands-Belgium Double Tax Treaty

Netherlands-Belgium Double Tax Treaty

As neighboring countries, the Netherlands and Belgium have very good economic relations and their governments have enabled various facilities. In order to support these relations, the two countries have also signed an agreement for the avoidance of double taxation in 1971. This is because there were many employees of Dutch companies commuting from Belgium. The Netherlands – Belgium double tax treaty covers the income tax and its elements in both countries.

Our Dutch company formation representatives can offer more information about the taxation system applicable in the Netherlands.

Provisions of the double tax treaty between the Netherlands and Belgium

The Netherlands – Belgium double taxation agreement covers both individuals residing in one or both countries and companies registered in one or the other country doing business in the other state. Broken down, the agreement for the avoidance of the income tax between the Netherlands and Belgium covers the following taxes in the case of Belgium:

  • –          the personal and the corporate taxes;
  • –          the tax applied to non-resident citizens;
  • –          the crisis contribution.

In the of the Netherlands, the agreement covers the following taxes:

  • –          the income, the corporate and the dividend taxes;
  • –          the wealth tax.

The Netherlands – Belgium double tax convention also provides for the status of permanent establishments which cover subsidiaries and branch offices which will be taxed only in the country where the profit arises.

Our company registration agents in the Netherlands can assists foreign investors interested in opening a company in this country.

Reduced tax rates in the Netherlands – Belgium double tax agreement

Like most Dutch double tax treaties, the one with Belgium also provides for reduces tax rates for incomes resulted from dividend, interest and royalties payments. These rates apply as it follows:

  • –          a 5% tax rate for dividends paid by a company in which the beneficiary holds at least 10% of the voting capital and a 15% rate in all other cases;
  • –          a 0% tax rate for interest payments;
  • –          a 0% tax rate on royalties.

It should also be noted that the Netherlands and Belgium have agreed to offer tax exemptions on incomes derived from numerous activities. For details on these exemptions, please contact our company registration consultants in the Netherlands.