State Secretary Weekers signs tax treaty with Germany
On Thursday, 12 April, Mr Weekers, the State Secretary of Finance, signed with his German colleague Emily Haber, the State Secreraty of Foreign Affairs, the new tax treaty with Germany in Berlin. The treaty prevents the payment of double taxes for private persons and companies, it regulates a better position for cross-border workers and it avoids tax dodging.
The treaty shapes the new compensation regulation for Dutch cross-border workers who work in Germany. The regulation means in practice that Dutch tax deductible items are taken into account, so that Dutch cross-border workers who work in Germany for example can simply deduct their mortgage loan interest, for instance. The cross-border workers regulation thus ensures that it becomes simpler and more attractive for inhabitants of the Netherlands to start working in Germany. The regulation is in particular good news for the Dutch border regions.
The treaty also offers advantages for trade and industry. It provides certainty to entrepreneurs about mutual investments between the Netherlands and Germany and prevents the payment of double taxation.
State Secretary Weekers: “I am very glad that we were able to conclude a new treaty. Germany is our main trading partner. This modern treaty replaces the current treaty dating from 1959 that is thus the oldest treaty the Netherlands currently has. It is important to have a treaty that meets the requirements of our time. In addition it is satisfactory that it contains a properly working regulation for cross-border workers.”