Netherlands and China signs new tax treaty

On May 31, 2013, Netherlands and China signed a new tax agreement, according to China-briefing.

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“Tax Treaty for the Avoidance of Double Taxation and Prevention of Fiscal Evasion” will fill in the existing double tax treaty of 1987. It will take effect on the last day of the month after the date of the final announcement.

The new treaty is yet to be approved according to the laws of both governments. The latest policies will be applied to income acquired on or after January 1 of next year once the new tax treaty comes into force.

The new agreement is considered to be a positive bilateral tax treaty for China.  It is likely to put forth significant influence on Dutch and Chinese investments.