France-Netherlands Double Tax Treaty

Individuals who earn an income from several states are normally taxed on that income by the same countries. If an individual disposes of capital in another country than that in which he or she resides, that capital will also be taxed in both countries. When an income or capital is taxed by more than one state, this is referred to as double taxation.

 

In order to avoid double taxation, the Netherlands has signed tax treaty agreements with quite numerous countries, among which with France. The France-Netherlands double tax treaty, signed in 1974, basically represents an agreement made between the two states to avoid imposing resembling double taxation in both countries. Our accountants in the Netherlands can offer a full summary of this double taxation agreement.

 

 

The France-Netherlands double tax treaty applies to taxation on income and capital. These are comprised of:

 

• Taxes on total income;

• Taxation on total capital;

• Taxes on elements of income or capital, together with taxes on gains from the alienation of movable or immovable real estate and taxes on capital gains.

 

The double tax treaty between the two countries is applies on the following taxes:

 

• In Netherlands:

    o The income tax (inkomstenbelasting): taxes on wages, salaries, pensions;

    o Corporation tax (of vennootschap-sbelasting);

    o The dividend taxation (of dividend-belasting);

    o Tax on fortune (of Vermogens-belasting).

 

• In France:

   o The income tax;

   o The business tax, together with all deductions, any prepayment or advance payment of the taxes mentioned above.

 

Our accounting firm in the Netherlands can provide further details on the taxation which the France-Netherlands double tax treaty applies to.

 

 

The most important provisions of the France-Netherlands double tax treaty refer to the reduced tax rates which are as follows:

 

• Dividends: 5% when the company in question holds directly minimum 25% of the paying capital of the business;

• Interest: 0%

• Royalties: 0%.

 

If you would like to receive more information on the France-Netherlands double tax treaty, please contact our Dutch accountants.