FIRS Negotiates with Netherlands on Double Taxation Agreement
The Federal Inland Revenue Service (FIRS) has embarked on the formal renegotiation of its Double Taxation Agreement (DTA) with the Kingdom of the Netherlands, amidst sweeping tax reforms.
This dialogue signifies the inaugural engagement following the enactment of Nigeria’s historic Tax Reform Bills, signed into law by President Bola Ahmed Tinubu on June 26, 2025.
A statement from the FIRS reveals that the opening ceremony of this renegotiation took place on Monday at the Revenue House in Abuja.
The event was presided over by the Executive Chairman of the FIRS, Dr. Zacch Adedeji, and saw the attendance of a distinguished Dutch delegation led by His Excellency Bengt van Loosdrecht, the Ambassador of the Netherlands to Nigeria.
Essential Negotiation
In his address at the ceremony, Dr. Adedeji characterized the renegotiation as both timely and indispensable, given the shifting tax landscape domestically and internationally.
“Recent developments in the domestic and global tax landscape have necessitated a reassessment of the existing agreement.
“The tax reforms undertaken by our government, global initiatives against Base Erosion and Profit Shifting (BEPS), and other evolving international tax standards will render current agreements obsolete,” he asserted.
He emphasized that the renegotiation is in complete accordance with the Tinubu administration’s broader fiscal objectives of expanding the domestic tax base, fortifying tax administration, and ensuring that the tax system fosters inclusive economic growth.
The Netherlands, being one of Nigeria’s enduring trade and investment partners, has become the first foreign government to initiate formal discussions to realign its tax agreement with Nigeria’s revamped tax framework.
The existing treaty, which includes measures designed to prevent double taxation, is now perceived as outdated in light of recent reforms.
Focus on a Beneficial Agreement
Ambassador van Loosdrecht reiterated the cooperative nature of the negotiations, expressing confidence in the capacity of both delegations to arrive at a mutually beneficial agreement.
“The fact that we convene here today is indicative of the goodwill and sincerity with which we wish to engage with one another.
“Ultimately, a treaty is about identifying common ground and building upon it. I am aware that both our sides possess highly competent, professional teams, and I am optimistic we will have a very productive week,” he remarked.
Key Insights
The newly enacted tax laws, encompassing the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Tax Board (Establishment) Act, constitute the most comprehensive overhaul of Nigeria’s tax system in decades.
They set the stage for the official inauguration of the Nigeria Revenue Service on January 1, 2026.
According to FIRS, the forthcoming six months will be dedicated to harmonizing tax data, implementing new systems, and updating existing tax treaties to reflect the modernized structure, in preparation for this transition.
