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The Netherlands signs new tax treaty with Benin
The Netherlands and Benin signed a tax treaty in Cotonou on 21 May 2026. This treaty will prevent double taxation and includes clear provisions to combat tax avoidance and evasion. In drawing up the treaty the fact that Benin is considered a developing country was specifically taken into account, in line with Dutch treaty policy. Therefore, unlike in treaties with non-developing countries, Benin is more likely to be granted the right to levy tax.
An example of this is the relatively broad definition of a permanent establishment: as a result activities carried out by companies in Benin or the Netherlands are more likely to be subject to taxation in the country concerned.
The treaty further includes provisions intended to prevent abuse. Agreements have also been made about information exchange and mutual assistance with tax collection. Should a dispute arise between the Netherlands and Benin about the application of the treaty, binding arbitration is possible. This will ensure that double taxation is effectively prevented.
The text of the new treaty has still be published.