Benin has submitted its income tax treaty with the Netherlands to the National Assembly for approval. The treaty introduces withholding tax rates of 15% on dividends, 10% on interest and 10% on royalties, alongside measures to prevent double taxation and tax evasion.
Benin’s Council of Ministers approved the pending income tax treaty with the Netherlands and submitted it to the National Assembly for consideration on 4 November 2026.
Signed on 21 May 2026, the treaty aims to prevent double taxation and combat tax avoidance and evasion while aligning with OECD/G20 BEPS standards. It covers major income and profit-based taxes in both countries, with provisions granting Benin broader source-state taxation rights and an expanded permanent establishment definition.
The treaty sets withholding tax rates of 15% on dividends, reduced to 5% for qualifying shareholders holding at least 10% for one year and 0% for qualifying pension funds; 10% on interest, with exemptions for certain government-backed loans and payments to government bodies and development banks; and 10% on royalties.
It will enter into force on the last day of the month following the exchange of ratification instruments and take effect from 1 January of the subsequent year.
