• Service: Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 6/12/2013

Netherlands - New income tax treaty with China 

June 12:  Representatives of the governments of the Netherlands and China on 31 May 2013 signed a new income tax treaty.

The new treaty, once ratified, would replace the existing income tax treaty (1987).

The new treaty would update a number of issues, including:

  • Allowing participation dividends to be distributed to a parent company resident in the other country at a reduced rate of 5%
  • Focusing on the prevention of tax avoidance, under anti-abuse provisions and a new provision on the exchange of information between China and the Netherlands

The treaty will apply to income received on or after January 1 of the year following the year in which all the ratification formalities between China and the Netherlands have been finalized. It is expected that the effective date of the treaty will be 1 January 2015 at the earliest.

Read a June 2013 report prepared by the KPMG member firm in the Netherlands: The Netherlands and China sign new tax treaty

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