On January 1, 2016 the new tax treaty between the Netherlands and Germany will enter into force.
One of the most notable changes compared to the old tax treaty is the introduction of a compensation scheme for Dutch residents who receive employment income or directors’ fees that are taxable in Germany. Based on this scheme residents of the Netherlands may claim a compensation if they are worse off as a result of taxation in Germany.
Moreover, unlike the ‘old’ treaty the new treaty contains a provision for directors’ fees based on which directors living in one country receiving directors’ fees from a company in the other country will be taxed differently as of 2016.
