CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.


Dutch DTA With Japan Questioned By EU Commission

by Lorys Charalambous,, Cyprus
23 November 2015

The European Commission has requested that the Netherlands amend the limitation on benefits clause in its double tax treaty with Japan.

The Commission said that, on the basis of previous cases such as Gottardo (C-55/00) and Open Skies (C-466/98), a member state concluding a treaty with a third country cannot agree better treatment for companies held by shareholders resident in its own territory, than for comparable companies held by shareholders who are resident elsewhere in the European Union or European Economic Area (EU/EEA).

Similarly, the Commission said a member state "cannot agree better conditions for companies traded on its own stock exchange than for companies traded on stock exchanges elsewhere in the EU/EEA. However, under the current terms of the LOB clause, some entities are excluded from the benefits of the tax treaty. This means that they suffer higher withholding taxes on dividends, interest, and royalties received from Japan than similar companies with Dutch shareholders or whose shares are listed and traded on 'recognized stock exchanges,' which include certain EU and even third-country stock exchanges."

The Commission has requested that the Netherlands respond to its concerns within two months. Otherwise the case may be referred to the European Court of Justice.


Treaty Updates by Territory

Latest Treaty Updates

Hungary - Kyrgyzstan

Hungary and Kyrgystan have begun DTA negotiations, the Hungarian Ministry of Foreign Affairs and Trade announced on February 28, 2018.

Morocco - Cape Verde

Morocco and Cape Verde will begin DTA negotiations in March 2018, Morocco's Tax Agency announced.

Mexico - Saudi Arabia

The DTA signed between Mexico and Saudi Arabia entered into force on March 1, 2018, following the publication in Mexico's official Gazette of a law ratifying the agreement on February 26, 2018.

Bangladesh - Morocco

Bangladesh and Morocco signed a DTA on March 1, 2018.

Pakistan - Philippines

Meeting over two days ending February 28, 2018, representatives from Pakistan and the Philippines agreed to renegotiate their DTA.

United Kingdom - Mauritius

The UK and Mauritius signed a DTA on February 28, 2018.

Singapore - Tunisia

Singapore signed a DTA with Tunisia on February 27, 2018.

Bahrain - Philippines

Bahrain's King, Hamad bin Isa Al Khalifa, has approved a law ratifying the DTA Protocol signed with the Philippines, state media reported on February 20, 2018.

Luxembourg - Oman

The Luxembourg Government on February 23, 2018, reported it is pushing for the negotiation of an amended DTA with Oman.

Mexico - Jamaica

According to a monthly update from the Mexican Government, Mexico's DTA with Jamaica entered into force on February 24, 2018.

Switzerland - Various

According to preliminary media reports, Switzerland's upper house of parliament of February 26, 2018, approved laws to ratify the DTAs signed with Kosovo and Pakistan and a Protocol with Latvia.

Luxembourg - Various

The Luxembourg Government announced that it is engaged in DTA negotiations with 15 countries, in a January 29, 2018, update, including newly DTA negotiations with the UK.

Ireland - Ghana

Ireland and Ghana signed a DTA on February 7, 2018.

Iran - Various

According to a statement from the President's office, Iran's Cabinet on February 18, 2018, approved the signing of DTAs with Sweden, Lithuania, and Japan.

Philippines - Various

On February 19, 2018, the Philippines Senate adopted three resolutions ratifying agreements for the avoidance of double taxation with Mexico, Thailand, and Sri Lanka.

Japan - Spain

Japan and Spain have agreed a DTA in principle, to replace their existing pact, the Japanese Ministry of Foreign Affairs announced February 21, 2018.

Armenia - Iraq

The Armenian Ministry of Finance said February 22, 2018, that a DTA had been initialed after four days of negotiations with Iraq.

India - Kenya

India's Ministry of Finance on February 22, 2018, revealed that an updated DTA between India and Kenya had been published in the Official Gazette, to replace the agreement in place between the two countries since 1985.

South Africa - Brazil

South Africa's DTA Protocol with Brazil entered into force on February 10, 2018.

Moldova - Georgia

Moldova's Cabinet on January 31, 2018, approved a law to ratify the DTA signed with Georgia in November 2017.

Kazakhstan - Azerbaijan

According to preliminary media reports, Kazakhstan's Senate on February 15, 2018, approved a law to ratify a Protocol to the DTA with Azerbaijan.

Poland - Ethiopia

Poland published an order in its Official Gazette on February 8, 2018, to bring the DTA signed with Ethiopia in 2015 into force. The agreement entered into force on February 14, 2018.

Paraguay - Qatar

Paraguay's Government on February 11, 2018, announced the signing of a DTA with Qatar.

Guernsey - Portugal

Guernsey's TIEA with Portugal will enter into force March 15, 2018, according to a February 20, 2018, update from the Guernsey Government.

Botswana - Zimbabwe

The Botswana Government has announced that the country will sign a DTA Protocol with Zimbabwe by the end of the year.

More Treaty Updates