A new tax treaty between Belgium and the Netherlands

It may take some time before the new tax treaty ("the Treaty") enters into force, as the ratification procedure first has to be completed in Belgium and the Netherlands. The earliest the Treaty is expected to enter into force is 1 January 2025. 

In the meantime, it is advisable to verify what changes the new Treaty will bring to your tax position. We will soon send out our newsletter, in which we will discuss the main elements of the Treaty and elaborate on some provisions that might be of interest to you. The text of the Treaty is not yet available, but press releases in Belgium and the Netherlands indicate that the Treaty includes the following elements: 

• Double non-taxation will explicitly be prevented at the request of Belgium
• Tax avoidance through abuse is addressed
• Some adjustments are provided for director-major shareholders with their own company who have emigrated to Belgium

The Treaty does not contain provisions for cross-border workers that work from home, but Belgium and the Netherlands continue to discuss this item. 

If you already have questions about the Treaty and how it affects your tax position, please contact your Loyens & Loeff adviser or one of our advisers from the Family Owned Business & Private Wealth team. We will be happy to assist you further.