Netherlands Seeks to Terminate Social Tax Treaty with Morocco

The global solution for payroll professionals, combines custom research, strategic white papers, country primers, webinars, and the expert guidance you’ve come...

By Molly Ward

Feb. 24—The Netherlands intends to terminate its social tax treaty with Morocco, according to a vote by the Dutch Parliament Feb. 17.

The social security convention between Morocco and the Netherlands initially was signed in February 1972. In 2015, discussions between the two countries led to a new social tax agreement. With the new social tax agreement signed but not formalized, the Moroccan government insisted benefits be extended to those living in Western Sahara. The Netherlands does not recognize the annexation of the territory by Morocco, leading to a breakdown in negotiations.

Morocco has until July 1 to renegotiate before the Netherlands formally announces the abolition of the treaty, spokesperson for the Minister of Social Affairs and Employment, Friso Fennema, told Bloomberg BNA Feb. 24.

“We hope the [Moroccan] government wants to talk or negotiate,” Fennema. “It is not our first option to cancel the agreement,” he added.

If formally canceled, the agreement will cease to apply from Jan. 1, 2017.

To contact the reporter on this story: Molly Ward at mward@bna.com

To contact the editor responsible for this story: Michael Baer at mbaer@bna.com

For More Information

The decision can be found in Dutch at https://zoek.officielebekendmakingen.nl/stb-2016-77.html.

More information on payroll issues in the Netherlands and Morocco can be found in the Netherlands and Morocco country primers.