New Tax Treaty The Netherlands and Republic of China reducing dividend withholding taxes to 5%.

Alert, Aug. 29, 2014

1.         INTRODUCTION

In 2013,  the Governments of the Netherlands and the Republic of China signed a new tax treaty (hereinafter the ‘New Tax Treaty’). Recenty, both governments ratified the same as a result of which the New Tax Treaty will effectively come into force as of January 1, 2015.

The New Tax Treaty aims to increase economic cooperation between the Netherlands and the Republic of China whilst it also includes provisions for the exchange of information.

This Tax alert gives a brief overview of the key features for investors and companies of the New Tax Treaty and sets forth the  main changes from the existing 1987 treaty between the Netherlands and the Republic of China.