Nigeria and the Kingdom of Netherlands have commenced renegotiation of the Double Taxation Agreement in line with the new tax laws in Nigeria.
The Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, hosted a delegation led by His Excellency Bengt van Loosdrecht, Ambassador of the Kingdom of the Netherlands to Nigeria, for the opening ceremony of the renegotiation.
The event took place at the Revenue House in Abuja and marked the beginning of a new phase in Nigeria's international tax relations, according to a statement from FIRS.
Daily Trust reports that Nigeria and Netherlands have an income tax treaty which has been in existence since 1991.
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The treaty is tagged, "Agreement between the Kingdom of the Netherlands and the Federal Republic of Nigeria for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains."
Following the signing of the Tax Reform Bill into law by President Bola Ahmed Tinubu (GCFR) on June 26, 2025, interest in Nigeria's new tax structure has already started to grow.
In less than a week, both local and international stakeholders have begun to respond.
Among them is the Kingdom of the Netherlands, one of Nigeria's long-standing trade and investment partners, which is now the first foreign government to begin formal talks with Nigeria to renegotiate its existing tax agreement.
According to the statement, the aim is to bring the agreement in line with the new reforms and remove outdated terms, especially those relating to double taxation which no longer reflects the current realities.
Adedeji who welcomed the delegation on behalf of the President, Government, and people of the Federal Republic of Nigeria described the visit as timely, especially considering recent changes in both domestic and global tax systems.
He said: "Recent developments in the domestic and global tax landscape have made the review of the existing agreement unavoidable. Particularly the tax reforms being carried out by our government, global measures against Base Erosion and Profit Shifting (BEPS), and other evolving international tax standards will render extant agreement out-of-date."
He further emphasized that the discussions align with the policy direction of the current administration and reflect Nigeria's commitment to a transparent and fair process.
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"This renegotiation meets with the policy objectives of the ongoing fiscal and tax reforms initiated by the administration of President Bola Ahmed Tinubu. We are committed to broadening the domestic tax base, strengthening tax administration, and ensuring that our tax system supports inclusive economic growth."
In his remark, the Ambassador highlighted the spirit of cooperation guiding the negotiations.
He noted; "The fact that we meet here today is an indication of the goodwill and the good faith in which we want to meet with each other. And I can assure you that my colleagues from the Netherlands will act in good faith. That is always an important basis for good negotiations."
Reflecting on the nature of treaty talks, he expressed optimism about the process and the teams involved.
"Ultimately, a treaty is about finding common ground and building upon that common ground. I know both of our sides have very competent, professional teams, and I am confident we will have a very fruitful week."
