Germany Signs Agreement on the Exchange of Tax Information with the Netherlands

Germany and the Netherlands have signed an agreement that provisions the exchange of information related to advance pricing agreements and tax rulings. The agreement is meant to lead to better cooperation on taxation matters between Germany and the Netherlands. For other information about tax agreements with the Netherlands you may refer to our specialists in Germany.

What are the provisions of the agreement between Germany and the Netherlands?

The agreement between Germany and the Netherlands was signed at the beginning of July in Brussels and provisions the spontaneous exchange of information on advance pricing agreements and tax rulings. The agreement also contains provisions about preferential taxes applied to intellectual property rights in the Netherlands, thus enabling German companies to benefit from reduced tax rates. According to the new agreement, the two countries will exchange tax information with respect to unilateral advance price agreements in case they impact the Dutch or German taxation system. The two countries will also exchange information about other agreements that could impact their convention on taxation matters. With respect to intellectual property rights the agreement provisions that Dutch tax authorities will release information about German companies benefiting from reduced tax rates under the Dutch patent box regime.

The agreement will be enforced starting with this year, but Germany and the Netherlands may agree upon the exchange of information related to previous years also. Our consultants in company registration in Germany may provide more information about the double tax treaty with the Netherlands.

Germany to sign more conventions on the exchange of tax information

In order to prevent tax evasion, the Government helped by the Finance Ministry wants to conclude more agreements on exchange of tax information with both EU and non-EU countries. This way the Government wants to ensure a proper environment for foreign investors coming to open companies in Germany.

At the moment the Mutual Assistance Act is the only German legislation with respect to the combat and prevention of tax evasion. However, Germany has signed a multilateral agreement for the introduction of automatic exchange of tax information with 50 countries that will require German companies and citizens to declare their foreign incomes.

For complete information about the country’s conventions on the exchange of tax information you may contact our representatives in company incorporation in Germany.