FIRS, Netherlands begin renegotiation of tax agreement

Barbara Bako, Abuja

The Federal Inland Revenue Service (FIRS) has commenced formal renegotiation of the Double Taxation Agreement (DTA) between Nigeria and the Kingdom of the Netherlands, marking a major step in aligning international tax agreements with Nigeria’s sweeping domestic tax reforms.…

The negotiations were formally opened on Monday at the FIRS headquarters, Revenue House, Abuja, during a high-level meeting hosted by the Executive Chairman of FIRS, Dr. Zacch Adedeji, and attended by His Excellency Bengt van Loosdrecht, Ambassador of the Netherlands to Nigeria.

The Netherlands becomes the first foreign government to engage Nigeria in renegotiating a DTA since the enactment of the landmark Tax Reform Bills signed into law by President Bola Ahmed Tinubu (GCFR) on June 26, 2025.

Welcoming the delegation, Dr. Adedeji described the talks as both timely and strategic, given ongoing transformations in global and domestic tax systems.

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Dr. Adedeji 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Base Erosion and Profit Shifting (BEPS), and other evolving international tax standards will render extant agreements out-of-date.”

He emphasized that the renegotiation aligns closely with the Tinubu administration’s economic policy direction.

“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,” he added.

Ambassador Loosdrecht expressed appreciation for the warm reception and reaffirmed the Netherlands’ commitment to a constructive and fair process.

“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. 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,” he said.

Underscoring the importance of collaboration, the Ambassador added, “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 recently signed tax legislation includes the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Tax Board (Establishment) Act. These laws are part of a broader overhaul aimed at restructuring tax administration and enhancing revenue collection efficiency.

Over the next six months, the government will focus on harmonizing tax data, implementing the new legislation, and laying the groundwork for the full operationalization of the Nigeria Revenue Service by January 1, 2026.

As part of this transition, existing tax treaties—including the DTA with the Netherlands—are being reviewed to reflect the provisions and principles of the new tax framework.