Nigeria, Dutch Government Renegotiate Outdated Tax Laws

The Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, hosted a delegation led by His Excellency Bengt van Loosdrecht, Ambassador of the Kingdom of the Netherlands to Nigeria, for the opening ceremony of the renegotiation of the Double Taxation Agreement between Nigeria and the Netherlands. 

The event took place at the Revenue House in Abuja on Monday, July 7, 2025, and marked the beginning of a new phase in Nigeria’s international tax relations.

Following the signing of the Tax Reform Bill into law by President Bola Ahmed Tinubu (GCFR) on June 26, 2025, interest in Nigeria’s new tax structure has already started to grow. 

Stakeholders respond to new tax laws

In less than a week, both local and international stakeholders have begun to respond. Among them is the Kingdom of the Netherlands, one of Nigeria’s long-standing trade and investment partners, which is now the first foreign government to begin formal talks with Nigeria to renegotiate its existing tax agreement. 

The aim is to bring the agreement in line with the new reforms and remove outdated terms, especially those relating to double taxation, which no longer reflect the current realities.

Dr. Zacch welcomed the delegation on behalf of the President, Government, and people of the Federal Republic of Nigeria. He described the visit as timely, especially considering recent changes in both domestic and global tax systems. 

He said:

“Recent developments in the domestic and global tax landscape have made the review of the existing agreement unavoidable.

Particularly, the tax reforms being carried out by our government, global measures against Base Erosion and Profit Shifting (BEPS), and other evolving international tax standards will render the extant agreement out-of-date.”

He further emphasised that the discussions align with the policy direction of the current administration and reflect Nigeria’s commitment to a transparent and fair process.

The Netherlands envoy commends Nigeria's tax laws

“This renegotiation meets with the policy objectives of the ongoing fiscal and tax reforms initiated by the administration of President Bola Ahmed Tinubu. We are committed to broadening the domestic tax base, strengthening tax administration, and ensuring that our tax system supports inclusive economic growth.”

In his remark, the Ambassador of the Kingdom of the Netherlands to Nigeria, His Excellency Bengt van Loosdrecht, expressed appreciation for the warm welcome and highlighted the spirit of cooperation guiding the negotiations. 

He stated:

“The fact that we meet here today is an indication of the goodwill and the good faith with which we want to meet with each other. And I can assure you that my colleagues from the Netherlands will act in good faith. That is always an important basis for good negotiations.”

Nigeria's new tax laws: What do they mean?

Reflecting on the nature of treaty talks, he expressed optimism about the process and the teams involved;

“Ultimately, a treaty is about finding common ground and building upon that common ground. I know both of our sides have very competent, professional teams, and I am confident we will have a very fruitful week.”

The tax reform bills recently signed into law include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Tax Board (Establishment) Act. These Acts restructure how taxes are managed in Nigeria. 

The next six months will be used to harmonise tax data, implement the newly signed laws, and put systems in place ahead of the January 1, 2026 takeoff of the Nigeria Revenue Service. This transition period will also cover the review of existing tax agreements to ensure they reflect the provisions of the new reforms.

Nigeria's tax system set for major overhaul

Legit.ng earlier reported that Nigerians will experience an improved and more transparent tax service delivery, the Federal Inland Revenue Service (FIRS) has promised.

The FIRS has revised its Standard Operating Procedure (SOP) in a move to improve consistency and seamless service in tax collection and administration.

This was contained in a statement signed by Mr. Collins Omokaro, the Special Adviser on Communication Strategy and Advocacy to the Executive Chairman of FIRS, and released on Monday, 9 June 2025.

Source: Legit.ng