- As FIRS engages stakeholders on best global practices
BY COBHAM NSA – Nigeria and the Netherlands are currently re-examining the extant Double Taxation Agreement between both countries to fine-tune it in line with global best practices.
This is coming on heels of strong responses from both local and international stakeholders less than a week after President Bola Tinubu signed the Tax Reform Bill into law on June 26, 2025,
Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, who hosted a delegation led by Ambassador Bengt van Loosdrecht of the Kingdom of the Netherlands to Nigeria at the renegotiation’s ceremony, described the visit as timely, considering recent changes in both domestic and global tax systems
He said the event marks the beginning of a new phase in Nigeria’s international tax relations, noting that interest in the country’s new tax structure continues to grow daily.
According to the FIRS boss, the Netherlands, one of Nigeria’s long-standing trade and investment partners, is the first foreign government to begin formal talks with Nigeria to renegotiate its existing tax agreement.
Welcoming the team on behalf of the President, Government, and people of the Federal Republic of Nigeria, 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Base Erosion and Profit Shifting (BEPS), and other evolving international tax standards will render extant agreement out-of-date.”
He said the discussions align with the policy direction of the current administration and reflect Nigeria’s commitment to a transparent and fair process, adding; “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”, the FIRS boss assured.
The Netherlands’ Ambassador, Bengt van Loosdrecht, while expressing appreciation for the warm welcome accorded his team, highlighted the spirit of cooperation guiding the negotiations.
He said; “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.”
On the treaty talks, Ambassador van Loosdrecht expressed optimism about the process and the teams involved, saying; “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.”
Meanwhile, a statement by the FIRS Management explained that the renegotiation session, which took place at the Revenue House in Abuja, seeks to align the agreement with the new reforms and remove outdated terms, especially those relating to double taxation which no longer reflect the current realities.
The statement said the next six months will be used to harmonize tax data, implement the newly signed laws, and put systems in place ahead of the January 1, 2026 takeoff of the Nigeria Revenue Service.
Importantly, this transition period will also cover the review of existing tax agreements to ensure they reflect the provisions of the new reforms
Among the tax reform bills recently signed into law are, the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Tax Board (Establishment) Act.
The Acts have effectively restructure how taxes are managed in Nigeria.
