Ireland has signed numerous treaties for the avoidance of double taxation. One of the states with which Ireland has signed a double tax agreement (DTA) is the Netherlands and the relations between the two contracting states have begun in 1969, when the document was signed at Hague. Our team of Irish solicitors can provide an in-depth presentation on the provisions of the treaty and the ways in which they are applied to Dutch natural persons or legal entities with activities in Ireland.
Income taxes under the Ireland – Netherlands DTA
According to the stipulations of the treaty, the agreement is applicable to taxes on income and taxes on capital, in accordance with the rules and regulations available in the national territory of the two contracting states.
The Netherlands imposes the following taxes:
• the income tax;
• the wages tax;
• the company tax;
• the dividend tax;
• the tax on fees of directors of companies;
• the capital tax.
Ireland will impose only the income tax and the corporation profits tax. The taxes are imposed to natural persons, companies or a corporate body, while the residency, as states under the Article 2 (f), refers to companies managed and controlled from Ireland/the Netherlands or to natural persons, tax residents in one of the two contracting states; our team of Irish lawyers can provide more details in this sense.
Taxation of immovable property under the Irish- Dutch DTA
Dutch businessmen interested in opening a company in Ireland should know that the income deriving from immovable property is taxable in Ireland, if the property is situated in this country. However, it is important to know that the term “immovable property” may have different meanings in each state. In Ireland, the term also includes livestock, property accessories, equipment used in forestry and agriculture.
At the same time, the regulations are also applicable to the income obtained by an enterprise through its immovable property.
Investors who are interested in knowing more details on the Ireland – Netherlands double taxation agreement canaddress our Irish law firm.