The Netherlands announces tax treaty agenda for 2025

The Dutch Ministry of Finance has published its tax treaty negotiation agenda for 2025¹, providing insights into recently finalized, ongoing, and upcoming treaty negotiations. This annual update serves to inform Parliament at an early stage and invites businesses and stakeholders to provide input on key areas of the tax treaty policy.

With currently 98 tax treaties in force, the Netherlands continues to expand and modernize its global tax treaty network. These agreements are essential for eliminating double taxation, increasing legal certainty for businesses, facilitating cross-border employment, and for preventing tax avoidance.

The 2025 agenda highlights several treaty amendments, the inclusion of anti-abuse provisions, and the launch of new negotiations with key trading partners.

Key developments in 2024: what has changed?

New tax treaties and treaty amendments effective from 1 January 2025

Andorra, Moldova, Kirgizstan, and Curacao – treaties and agreements were ratified and will take effect from 1 January 2025.

Pending ratification and expected implementation in 2025

Belgium – a revised treaty was signed and is awaiting ratification, addressing double taxation, anti-abuse measures and issues related to professors, athletes and artists. Discussions are ongoing on facilitating remote work for cross-border employees.
Germany – a major update to the tax treaty, focused on facilitating remote work for cross-border employees, has been approved and is expected to be signed and ratified in 2025.
Sint Maarten – anti-abuse clauses were introduced. Ratification is expected in 2025.
Bangladesh – a new treaty was signed in March 2024, focusing on introducing anti-abuse clauses and modernizing tax arrangements, and ratification is expected in 2025.

Pending signing in 2025

Thailand – an agreement has been reached on a new treaty to replace the existing treaty from 1975. The Netherlands has reinitiated contact for the signing.

Treaty countries included on the (EU) list of low-taxed and non-cooperative jurisdictions

Morocco – negotiations were paused, as the two countries remain too far apart on key tax provisions. No further discussions are scheduled for 2025.
Barbados – the corporate tax rate was raised to 9% in 2024, and the included exception for certain businesses is no longer in place as of 1 January 2025, Barbados should be removed from the list as of next year. From that point onward, the conditional withholding tax will no longer apply to Barbados. Therefore, renegotiating the tax treaty is not expected to be necessary.
Bahrain – a corporate tax rate of 9% is expected to be implemented this year and should therefore be removed from the list as of next year. Therefore, renegotiating the tax treaty is not expected to be necessary.

Tax Treaty Negotiations in 2025: What is on the agenda?

Countries in the negotiation phase

Negotiations are already underway with:

Brazil – focusing on modernizing the treaty and including anti-abuse provisions.
Portugal – resuming long-paused negotiations, particularly on including full source state taxation on pensions.
Romania – updating treaty provisions, particularly around pensions and double taxation relief as in practice, it was found that both countries tax pension payments from the Netherlands to Romanian residents.
Mozambique & Benin – first-time tax treaty negotiations in progress with both countries.
Uganda – updating the existing treaty, no agreement has been reached on several fundamental points. Discussions are ongoing whether to schedule a new negotiation round.

New negotiations expected to begin in 2025

The Netherlands has announced plans to initiate discussions with:

Ecuador – previous exploratory talks are set to transition into negotiations, as the Netherlands has recently re-approached Ecuador.
Suriname – Dutch authorities will reach out to restart negotiations on modernizing the tax treaty and include international minimum standards on treaty abuse.
Sweden – focusing on a source state taxation on pensions and including international minimum standards on treaty abuse.

Impact on Businesses and Investors

Companies with international operations should review their structures and tax obligations in light of upcoming treaty revisions and international minimum standards on treaty abuse.
Businesses with cross-border employees should monitor changes to the Dutch-German and Dutch-Belgian treaties, as they could impact payroll taxes and social security obligations.
Investors and pensioners affected by Dutch tax treaties with Portugal, Sweden, or Belgium should assess how updated pension taxation rules might influence their tax liabilities.

Questions?

If you have any questions regarding the above information, please feel free to contact our Corporate Tax team colleagues.