Germany Enters Into New Tax Treaty With The Netherlands

Author:Mr Martijn Snoep and Kees Peijster
Profession:De Brauw Blackstone Westbroek N.V.

Germany and the Netherlands signed a new double taxation treaty on 12 April 2012. This new double taxation treaty ⦣8364;" which still has to be ratified by both countries ⦣8364;" is expected to enter into effect as from 1 January 2014. The new treaty replaces the current treaty entered into in 1959 and is to a large extent modelled on the basis of the 2010 OECD Model Convention. Distinctive features of the new treaty are:

Dutch tax exempt entities have access to treaty benefits, subject to application of anti-abuse rules which rules will in any case be applied by Germany to Dutch exempt investment institutions (vrijgestelde beleggingsinstellingen). A provision regarding the application of the treaty to hybrid entities is included which is modelled on the basis of the OECD standard. Gains derived from the disposal of shares in a non-public real estate company by a more than 50%...

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