UK- Netherlands Tax agreement
The explanatory memorandum to the Double Taxation Convention and Protocol between the UK and the Netherlands has been published. The new agreement is designed to replace earlier agreements between the two countries and follows the approach set out in the OECD’s Model Tax Convention on Income and on Capital.
The agreement seeks to avoid double taxation in relation to income tax, corporation tax and capital gains tax in the UK and similar taxes in the Netherlands including income tax and wages tax.
The Convention also includes some additional rules in respect of petroleum revenue tax and ring fence trades which have been included to allow the Netherlands to give relief for these specific taxes.
The provisions will apply in the UK from 1 April in relation to corporation tax and from 6 April in relation to income tax and capital gains tax and in the Netherlands from 1 January in the year following the completion of all relevant legislative procedures.