The Federal Inland Revenue Service (FIRS) has commenced formal renegotiations of its Double Taxation Agreement (DTA) with the Kingdom of the Netherlands.
The talks mark the first such engagement following the signing of Nigeria’s landmark Tax Reform Bills into law by President Bola Ahmed Tinubu on June 26, 2025.
According to a statement from the FIRS, the opening ceremony of the renegotiation was held on Monday at the Revenue House in Abuja.
It was hosted by the Executive Chairman of the FIRS, Dr. Zacch Adedeji, and attended by a high-level Dutch delegation led by His Excellency Bengt van Loosdrecht, the Ambassador of the Netherlands to Nigeria.
Necessary negotiation
Speaking at the event, Dr. Adedeji described the renegotiation as both timely and necessary, given the evolving tax landscape at home and abroad.
“Recent developments in the domestic and global tax landscape have made the review of the existing agreement unavoidable.
“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Base Erosion and Profit Shifting (BEPS), and other evolving international tax standards will render extant agreements out-of-date,” he stated.
- He noted that the renegotiation is fully aligned with the Tinubu administration’s broader fiscal objectives of broadening the domestic tax base, strengthening tax administration, and ensuring that the tax system supports inclusive economic growth.
- The Netherlands is one of Nigeria’s long-standing trade and investment partners and has become the first foreign government to initiate formal talks to realign its tax agreement with Nigeria’s new tax framework.
- The existing treaty, which includes provisions aimed at preventing double taxation, is now seen as outdated in light of recent reforms.
Beneficial agreement in focus
Ambassador van Loosdrecht echoed the cooperative tone of the negotiations, expressing confidence in both delegations’ capacity to reach a beneficial agreement.
“The fact that we meet here today is an indication of the goodwill and the good faith in which we want to meet with each other.
“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,” he said.
What you should know
The newly signed tax laws, which include the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Tax Board (Establishment) Act, represent the most comprehensive overhaul of Nigeria’s tax system in decades.
They pave the way for the official launch of the Nigeria Revenue Service on January 1, 2026.
According to FIRS, in preparation for that transition, the next six months will be used to harmonize tax data, implement new systems, and update existing tax treaties to reflect the modernized structure.
