On March 24, 2021 the Netherlands and Germany have signed a protocol to amend the tax treaty concluded between both states. The changes made to the tax treaty are in line with multiple provisions of the Multilateral Instrument (‘MLI’). The protocol also amends the allocation of taxation rights with respect to certain social security benefits.
Most relevant amendments
The amendments will be entering into force once both states have finalized their own ratification procedure. The amendments might have effect on already existing business structures. Especially the 365 day period in the dividend and real estate shares clause might impact already existing structures. It is therefore recommended to assess whether your business will be affected by the aforementioned amendments.