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Belgium-Netherlands Double Tax Treaty

Belgium-Netherlands Double Tax Treaty

Tax treaty between Belgium and the Netherlands

The Kingdom of Belgium and the Kingdom of the Netherlands have agreed to sign a treaty for the avoidance of double taxation and the prevention of fiscal evasion with respect to the taxes on income. This treaty concerns individuals who produce income in one of the countries but are residents of the other. In order to avoid taxing the same income twice, the two countries have made certain agreements that are included in the Double Tax Agreement.

The tax treaty is binding for both countries and will supersede the national legislation for taxation. The treaty allows for the avoidance of double taxation and also double exemption. Individuals will either be taxed in Belgium or in the Netherlands for an income, but never in both of the countries.

The taxes covered by the Belgium-Netherlands treaty

The Convention applies to individuals or legal entities that are nationals/residents of one or both Contracting States. It applies to taxes on income and on capital, irrespective of the manner in which they are levied by one of the Contracting States.

The taxes to which the Agreement applies in particular are in case of Belgium:

– the individual income tax;

– the corporate tax;

– the tax on legal entities;

– the tax on non-residents;

–  the supplementary crisis contribution.

In the Netherlands the taxes are the following:

– the income tax;

– the corporate tax;

– the dividend tax;

– the wealth tax.

Our Belgian lawyers can give you detailed information about taxation in Belgium and our partner law firm in the Netherlands can tell you more about Dutch taxes for companies and individuals.

Other provisions of the double tax treaty

The taxation on income, as described in the chapters of the Convention, concerns the following types of income:

– income from immovable property;

– business profits;

– profits made from shipping and air transport activities: particularly important for import and export companies;

dividends, interest, royalties and capital gains;

– self-employment;

– director’s fees;

– pensions, social security payments, alimony.

Special provisions exist for offshore activities and undertakings for collective investment in transferable securities. For more information about other double tax treaties signed by Belgium or if you want to know more about the legislation for foreign investments in the country you can contact our attorneys in Belgium.