New tax treaty signed with China
On Friday, 31 May 2013, Mr Weekers, State Secretary of Finance of the Kingdom of The Netherlands, and Mr Wang Li, People's Republic of China, signed the new tax treaty with China in Beijing.
The treaty replaces the current treaty of 1987 and has been updated and improved in a number of items. For instance, the new treaty includes a modern provision about the exchange of information and offers the opportunity to pay a so-called intercompany dividend for a 5% rate to the parent company in the other country.
State Secretary Weekers: “These past few years China underwent a huge development and I am happy that we have a modern treaty now with such an important trading partner. Many Chinese companies are active already in the Netherlands and I hope that this new treaty will be an extra incentive for even more investments in the Netherlands. It will provide employment.”