The Federal Inland Revenue Service (FIRS) and the Kingdom of the Netherlands have officially commenced the renegotiation of the Nigeria and Netherlands Double Taxation Agreement. This marks a significant step forward in aligning international tax policies with Nigeria’s newly enacted tax reforms.
On Monday, FIRS Executive Chairman Dr. Zacch Adedeji hosted a delegation from the Netherlands led by Ambassador Bengt van Loosdrecht at the FIRS headquarters in Abuja. The meeting initiated formal talks aimed at updating the existing bilateral agreement to reflect current economic realities and eliminate outdated provisions on double taxation.
This renegotiation follows the recent signing into law of the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Tax Board (Establishment) Act by President Bola Tinubu in June 2025. These laws collectively modernize Nigeria’s tax administration framework and lay the foundation for more efficient revenue governance.
As one of Nigeria’s key investment and trade partners, the Netherlands becomes the first foreign government to formally engage in treaty discussions following the implementation of the new tax regime.
Dr. Zacch Adedeji welcomed the Dutch delegation on behalf of the Nigerian government, describing the timing of the visit as strategic amid sweeping changes in both national and global tax systems.
He stated, “Recent developments in domestic and international tax frameworks make it imperative to review our existing agreements. With ongoing tax reforms, combined with global efforts to combat Base Erosion and Profit Shifting, the current treaty can no longer serve its purpose effectively.”
Adedeji emphasized that the renegotiation supports the administration’s broader fiscal reform agenda, which includes expanding the tax base, improving compliance, and ensuring fairness in the tax system.
“This process reflects our commitment to building a transparent, equitable, and growth-oriented tax environment,” he added.
Ambassador Bengt van Loosdrecht expressed appreciation for the collaborative tone of the discussions and underscored the importance of mutual trust in treaty negotiations.
“We are here in good faith, ready to work together toward a fair and mutually beneficial agreement,” he said. “A successful treaty negotiation hinges on finding common ground—and I’m confident both teams are well-equipped to achieve that.”
The FIRS has outlined a six-month transition period leading up to the full operationalization of the new Nigeria Revenue Service on January 1, 2026. During this time, both parties will work to harmonize tax data, update systems, and ensure all bilateral agreements comply with the new legal framework.
This renegotiation of the Nigeria and Netherlands Double Taxation Agreement underscores Nigeria’s growing role in shaping international tax cooperation and reinforces its commitment to responsible, modernized tax governance.
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