New tax treaty with Japan signed

On August 25, 2010, the new tax treaty between the Netherlands and Japan was signed in Tokyo. This marks the next step towards the entry into force of the treaty.

The treaty provides for a further reduction or exemption of the withholding tax rates on dividends, interest and royalties and thereby contributes to an enhancement of the mutual investments.

In December 2009, the negotiations between the Netherlands and Japan were concluded, resulting in today’s signing ceremony. The treaty was signed between Mr. Koichi Takemasa, State Secretary for Foreign Affairs of Japan and His Excellency Dr. Philip De Heer, Ambassador Extraordinary and Plenipotentiary of the Kingdom of the Netherlands to Japan. It is expected that the ratification process in the Netherlands will be completed in 2011, resulting in the treaty entering into force in 2012.

Jan Kees de Jager, the Netherlands Minister of Finance, expresses his enthusiasm with respect to the new tax treaty: “Japan has always been an important trading partner for the Netherlands. The tax treaty promotes mutual investments which further strengthens the economic relations between the Netherlands and Japan. In addition, both countries have agreed upon an arbitration procedure, in case the competent authorities are not able to reach an agreement to resolve the double taxation. For Japan, it is the first time to agree on arbitration in a tax treaty.”

The treaty was signed between Mr. Koichi Takemasa, State Secretary for Foreign Affairs of Japan (to the right) and His Excellency Dr. Philip De Heer, Ambassador Extraordinary and Plenipotentiary of the Kingdom of the Netherlands to Japan.