New tax treaty between Belgium and the Netherlands: consequences for companies and individuals carrying out cross-border activities

Belgium and the Netherlands have traditionally been important trading partners that benefit from concluding agreements on the allocation of tax rights and the prevention of double taxation. For example, Belgium and the Netherlands have agreements through a tax treaty on who may tax, for example, corporate profits, dividends, royalties, income from real estate, or income from employment (wages). This is important, because many companies and people conduct activities in both Belgium and the Netherlands.

The new tax treaty includes changes that will remove existing bottlenecks. For example, amended agreements were concluded in the new treaty on taxation of artists and athletes, compensation schemes for Dutch cross-border workers, taxation of managers and employees, and changes monitoring withholding taxes were also included.

The treaty has not yet been ratified, so the initial expectation is that companies and individuals in Belgium and the Netherlands will not have to deal with the new treaty until 2025 at the earliest.

In this new episode of Stibbe Legal Insights, Julie Smits, lawyer in the tax practice at Stibbe Brussels, and Johan Frolik and Lotte Hofer Bohn, lawyers in the tax practice at Stibbe Amsterdam, discuss the most important changes in the new tax treaty and the topics that the treaty does not (yet) offer. A solution for it.

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