The Federal Inland Revenue Service (FIRS) and the Kingdom of the Netherlands have officially begun renegotiating their Double Taxation Agreement, marking a significant step in aligning Nigeria’s international tax treaties with its recent domestic reforms. The meeting, held at the FIRS headquarters in Abuja, was hosted by FIRS Executive Chairman Dr Zacch Adedeji and attended by the Dutch delegation led by Ambassador Bengt van Loosdrecht.
This move follows President Bola Tinubu’s signing of a series of Tax Reform Bills into law in June 2025, including the Nigeria Tax Act and the Nigeria Tax Administration Act. The FIRS described the Netherlands as the first country to engage Nigeria on updating existing tax treaties to remove outdated provisions, especially those concerning double taxation. Adedeji said the review was necessary given global changes in tax policy and Nigeria’s push for a more modern, transparent system.
Dr Adedeji affirmed that the renegotiation aligns with the Tinubu administration’s fiscal policy direction, which aims to broaden the tax base, strengthen tax administration, and support inclusive growth. He emphasized that evolving global standards, such as measures against Base Erosion and Profit Shifting (BEPS), make updating the agreement essential to maintaining fairness and relevance in international taxation.
Ambassador van Loosdrecht expressed optimism about the process, stressing the spirit of mutual goodwill and cooperation. He noted that both sides bring experienced negotiators to the table and expressed confidence in reaching a fruitful agreement. The FIRS announced that the next six months will focus on implementing the new tax laws and reviewing existing agreements ahead of the January 1, 2026, launch of the Nigeria Revenue Service.
