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Belgium - Netherlands Double Tax Treaty

Belgium - Netherlands Double Tax Treaty

Updated on Friday 07th July 2017

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Belgium - Netherlands Double Tax Treaty

The double taxation treaty between the Netherlands and Belgium has been signed in order to clarify the taxation of income for entrepreneurs who conduct business in both countries. Since Belgium and the Netherlands are members of the European Union and neighbour states, this treaty represents just another measure encouraging mutual investment by Belgium and Netherlands in each other. Our accountants in Netherlands can give you more details on how the double tax agreement simplifies an entrepreneur’s responsibilities in matters of taxation.  
 

Provisions of the Belgium – Netherlands Double Tax Treaty

The tax convention between Belgium and the Netherlands addresses issues such as compensation for double taxation which is offered for investors with double residency.  As such, a person from Belgium earning income in the Netherlands can apply for tax relief in this country and pay the taxes in his home country. Alternatively the investor can decide to become a Dutch-resident taxpayer.
 
Among the methods allowed by the double tax treaty between Belgium and the Netherlands in order to avoid over taxation, you will find the tax exemption which is applied to companies who obtain profits in another country than their home state, allowing investors to pay a tax only in the source country. 
 
Investors benefit as well from the double taxation agreement provisions regarding the setoff method which is a tax relief method which implies the recalculation of the tax amounts in the home country for income such as dividends, royalties and interest.  
 
Our Dutch accounting firm can clarify any questions you might have on the double tax treaty provisions and their impact on the tax calculation for your profits. 
 

Advantages of the Belgium – Netherlands double tax treaty

The tax treaty between Belgium and the Netherlands encourages mutual investments between the two countries. A natural consequence is a growth of the trade cooperation and of the economic level in the two countries. The double tax treaty provides for several compensation schemes for Dutch residents who pay taxes in Belgium and our Dutch accountants can give you more details on this matter.
 
The double taxation agreement has also a key role in increasing the transparency in the commercial sector and in providing a safer legal framework for Belgian citizens who intend to open a business in the Netherlands.
 
Please feel free to contact our accounting firm in the Netherlands for complete information on the advantages that the double taxation treaty brings to your business activity in one of the two countries. 
 

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