New Netherlands - Japan tax treaty

25 August 2010 Add expertise tag Add service tag Add country tag
Japan

On August 25, 2010, the new tax treaty between the Netherlands and Japan was signed in Tokyo. 

The Netherlands and Japan have agreed in principle on a new Convention for the avoidance of double taxation with respect to taxes on income.

The new Convention contains a balanced approach between the reduction or exemption of taxes at source (see the outline below) and provisions aimed at preventing tax evasion. This will contribute to further expanding investments and economic exchanges between the Nehterlands and Japan.

The official signing of the new Convention is expected by early summer of 2010; by that time the official text will be made publicly available. It is intended for the new Convention to become effective as of January 1st, 2011.

Outline of withholding taxes on dividends, interest and royalties

 

Dividends

Interest

Royalties

Parent-Subsidiary (shareholding)

Others

Current Convention

5% (25% or more)

15%

10%

10%

New Convention

0% (50% or more)

5% (10% or more)

10%

0% (financial institutions etc.)

10% (others)

0%