Following over a year of discussions, Ethiopia and the Netherlands have signed a double taxation agreement (DTA) with the aim of boosting bilateral economic cooperation, trade and investment.
The Ethiopian Finance and Economic Development State Minister, Alemayehu Gujo, and Netherlands ambassador to Ethiopia, Hans Blankenberg, signed the agreement in Addis Ababa on August 10, 2012.
The DTA exempts individuals and businesses in the two countries from paying taxes in both countries, and is intended to enable both nations to benefit from increased capital flows, exchange of technology, and goods and services trade.
Said to be based on the Organization for Economic Cooperation and Development Model Convention, the agreement also includes provision for the exchange of tax information between the two countries, and has an arbitration clause for the resolution of disputes.
In addition, it is reported that the withholding tax payable on interest and royalties paid from one country to the other has been fixed at 5%, as has the withholding tax payable on dividends where a shareholder from one country holds more than 10% of a company in the other.
Alemayehu said the agreement would take the already close relations between the two countries to a higher level, while Blankenberg added that it would help to enhance their relationship by providing Dutch investors in Ethiopia with certainty over the tax treatment of their investments, and expressed his hope that the DTA would boost the revenues Ethiopia earns from trade and investment with the Netherlands..
Treaty Update: Luxembourg - Laos
According to preliminary media reports, the DTA signed between Laos and Luxembourg will enter into force on March 21, 2014.
Treaty Update: Czech Republic - Bahamas
The Bahamas and the Czech Republic on March 6, 2014, signed a TIEA.
Treaty Update: Guernsey - Costa Rica
Guernsey signed a TIEA with Costa Rica on March 5, 2014.
Treaty Update: Guernsey - Gibraltar
The TIEA signed between Guernsey and Gibraltar will enter into force on March 12, 2014, according to an update from the Guernsey Government.
Treaty Update: Guernsey - Austria
Guernsey expects to sign a DTA with Austria on May 14, 2014, according to an update from the Guernsey Government.
Treaty Update: Hungary - Kosovo
According to preliminary media reports, the DTA signed between Hungary and Kosovo will enter into force on March 12, 2014.
Treaty Update: Austria - Taiwan
According to preliminary media reports, Austria and Taiwan initialed a DTA during three days of negotiations concluding on February 20, 2014.
Treaty Update: Algeria - United Kingdom
Negotiations have begun between Algeria and the United Kingdom towards a DTA, it was confirmed on March 2, 2014.
Treaty Update: Morocco - Guinea
A DTA was reportedly signed between Morocco and Guinea as part of Moroccan King Mohammed VI's visit to Guinea, which began on March 3, 2014.
Treaty Update: Peru - Korea, South
According to preliminary media reports, Peru completed its domestic ratification procedures on February 27, 2014, in respect of the DTA the nation signed with South Korea.
Treaty Update: United States - Various
The US Senate Committee on Foreign Relations held talks on February 26, 2014, on the DTA Protocols between the United States and Switzerland and Luxembourg, and DTAs with Hungary and Chile, as part of the nation's domestic ratification procedure.
Treaty Update: Spain - Montenegro
According to preliminary media reports, Spain and Montenegro have held a first round of negotiations towards a DTA.
Treaty Update: Pakistan - Afghanistan
According to preliminary media reports, Pakistan and Afghanistan held two days of negotiations towards a DTA on February 23-24, 2014.
Treaty Update: Costa Rica - Various
According to preliminary media reports, Costa Rica completed the ratification of the tax information exchange agreements the territory signed with Denmark, Finland, Greenland, Norway, Iceland, Sweden and the Faroe Islands, publishing a notice in its Official Gazette on January 29, 2014.
Treaty Update: Bahrain - Hungary
Bahrain signed a DTA with Hungary on February 24, 2014.
Treaty Update: Cyprus - Norway
The Government of Cyprus on February 24, 2014, confirmed the signing of a DTA with Norway.
Treaty Update: India - Malta
According to preliminary media reports, the India-Malta DTA entered into force on February 7, 2014.
Treaty Update: United Kingdom - India
Based on a notification from the Indian Ministry of Finance on February 10, 2014, the Protocol amending the India-UK DTA entered into force in the UK and India on December 27, 2013. The DTA Protocol is immediately effective in India, and becomes effective in the UK: for income tax and capital gains, from April 6, 2014; for corporation tax, from April 1, 2014; and for petroleum revenue tax, from January 1, 2014.
Treaty Update: Kuwait - Bangladesh
According to preliminary media reports, Kuwait and Bangladesh signed a DTA on February 19, 2014.
Treaty Update: Morocco - Mali
Morocco and Mali signed a DTA on February 20, 2014.
Treaty Update: Singapore - Laos
Singapore and Laos initialed a DTA on February 21, 2014.
Treaty Update: United Kingdom - Tajikistan
The United Kingdom has announced that it will terminate its double tax arrangements with Tajikistan for profits arising on or after April 1, 2014, in the case of corporation tax; and for income and gains arising on or after April 6, 2014, in the case of income tax and capital gains tax. The agreement will continue to apply to profits, income and gains arising before these dates.
The decision relates to the UK/USSR convention, which remains in force between Belarus, Turkmenistan and the United Kingdom. Tajikistan considers that the UK/USSR convention has never had effect in its territory as it did not complete the necessary procedures to bring it into effect under its domestic law, the UK Government explained.
Treaty Update: Bulgaria - Norway
According to preliminary media reports, the Bulgarian Government on February 19, 2014, approved the signing of a draft DTA with Norway.
Treaty Update: Pakistan - Afghanistan
According to preliminary media reports, Pakistan and Afghanistan will hold another round of negotiations towards the signing of a DTA over two days concluding on February 23, 2014.
Treaty Update: Germany - Costa Rica
Germany and Costa Rica signed a double tax agreement on February 13, 2014.