On 14 June 2014, the Netherlands ratified the pending income tax treaty with Ethiopia. The treaty, signed 10 August 2012, is the first of its kind between the two countries.
Taxes Covered
The treaty covers the Netherlands income tax, wage tax, company tax and dividend tax. It covers Ethiopian tax on income and profits, and the tax on income from mining, petroleum and agricultural activities.
Offshore PE
The treaty includes the provision that a permanent establishment (PE) will be deem…