Nigeria, Netherlands begin talks to update outdated double taxation treaty
The Federal Inland Revenue Service has formally initiated discussions to renegotiate its Double Taxation Agreement with the Kingdom of the Netherlands.This represents the first engagement of its kind since President Bola Ahmed Tinubu enacted Nigeria’s significant Tax Reform Bills on June 26, 2025.
As per a statement from the FIRS, the inaugural session of the discussions was held on Monday at the Revenue House in Abuja.
The meeting was chaired by Dr. Zacch Adedeji, the Executive Chairman of the FIRS, and featured a senior Dutch delegation led by His Excellency Bengt van Loosdrecht, the Ambassador of the Netherlands to Nigeria.
In his speech, Dr. Adedeji characterized the renegotiation as both timely and crucial, referencing the rapidly changing tax environment both locally and worldwide.
“Recent changes in our domestic and international tax landscape make it necessary to reassess the existing agreement.
“The tax reforms implemented by our government, global initiatives to combat Base Erosion and Profit Shifting (BEPS), and other advancing international tax standards will render current agreements obsolete,” he emphasized.
He indicated that the renegotiation is closely aligned with the broader fiscal agenda of the Tinubu administration—aiming to broaden the domestic tax base, improve tax administration, and ensure the tax system supports inclusive economic growth.
The Netherlands, a long-standing trade and investment partner of Nigeria, is the first foreign nation to commence formal talks for realigning its tax treaty with Nigeria’s revised tax framework.
The existing agreement, which includes clauses to prevent double taxation, is now viewed as outdated given the recent reforms.
Ambassador van Loosdrecht reflected the spirit of collaboration, expressing optimism about the potential for both delegations to arrive at a mutually advantageous agreement.
“The fact that we convene here today signifies the goodwill and sincerity with which we wish to engage with each other.
“Ultimately, a treaty’s purpose is to establish common ground and to build upon that foundation. I believe that both of our sides have highly capable, professional teams, and I am optimistic that we will experience a productive week,” he remarked.
The recently enacted tax laws—including the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Tax Board (Establishment) Act—represent the most significant revision of Nigeria’s tax framework in many years.
They also establish the groundwork for the official launch of the Nigeria Revenue Service, scheduled for January 1, 2026.
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