Netherlands and Ethiopia sign new tax treaty [TAX ALERT]

October 25, 2012

On 10 August 2012, the Netherlands and Ethiopia signed their first tax treaty in the Ethiopian capital city Addis Ababa. In this Alert, we discuss the important features of this new tax treaty.

The economy of the Netherlands is an open one with a relatively small domestic market and a large foreign market. A large number of industrial and commercial companies operate mainly on an international basis.

The country’s policy on tax treaties reflects this openness in its relationships with other countries. Dutch policy is aiming to remove obstacles to the international flow of goods and capital. In line with this policy, Dutch legislation does not require withholding tax to be levied on outbound interest and royalties.

Further details are available from the Ernst & Young International Tax Alert which can be accessed using the link below:

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