On March 24, 2021, the Netherlands and Germany signed a protocol to amend the tax treaty between the two states (the Protocol). The tax treaty prevents, on the one hand, double taxation by companies or citizens and, on the other hand, non-taxation. The Protocol contains agreements on the right to levy taxes on (short-term) social security benefits and clauses to prevent tax avoidance.
The Protocol has not yet entered into force, but it will take effect once parliamentary ratification and the exchange of ratification instruments between the contracting states occurs. This GT Alert summarizes the content of the Protocol.
