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..
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Zimbabwe on April 8, 2016, ratified the DTA with South Africa.
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Kyrgyzstan and Estonia initialed a DTA on April 20, 2016.
Treaty Update: British Virgin Islands - Isle of Man
The BVI Government announced on April 14, 2016, that it has signed a TIEA with the Isle of Man.
Treaty Update: Hong Kong - Latvia
Hong Kong and Latvia signed a DTA on April 13, 2016.
Treaty Update: United Arab Emirates - United Kingdom
The United Arab Emirates and the United Kingdom signed a DTA on April 12, 2016.
Treaty Update: Hong Kong - Vietnam
A DTA Protocol between Hong Kong and Vietnam became effective on April 1, 2016, in Hong Kong. It has been effective in Vietnam since the beginning of the year.
Treaty Update: India - Maldives
India and Maldives signed a tax information exchange agreement on April 11, 2016.
Treaty Update: United Arab Emirates - Jordan
The United Arab Emirates and Jordan signed a DTA on April 11, 2016.
Treaty Update: Egypt - Saudi Arabia
Egypt and Saudi Arabia signed a DTA on April 8, 2016.
Treaty Update: Morocco - Slovenia
Morocco and Slovenia signed a DTA on April 6.
Treaty Update: Hong Kong - Various
Hong Kong's DTAs with Italy, South Africa, and the United Arab Emirates became effective in Hong Kong on April 1, 2016.
Treaty Update: Korea, South - Georgia
South Korea and Georgia signed a DTA on March 31, 2016.
Treaty Update: Switzerland - France
A DTA Protocol between Switzerland and France entered into force on March 30, 2016.
Treaty Update: Ukraine - Cyprus
A DTA Protocol between Ukraine and Cyprus has been forwarded on to Ukrainian lawmakers for approval, the Government announced on March 31.
Treaty Update: United Kingdom - Various
The UK and the Crown Dependencies — Jersey, Guernsey, and the Isle of Man — have agreed to revise their DTAs, according to statements from Jersey and Guernsey on March 16, 2016.
Treaty Update: Botswana - Malawi
Botswana and Malawi signed a DTA on March 16, 2016.
Treaty Update: Belarus - Kazakhstan
Belarus and Kazakhstan signed a DTA Protocol on March 16, 2016.
Treaty Update: United Arab Emirates - Singapore
The Second Protocol to the UAE-Singapore DTA entered into force on March 16, 2016.
Treaty Update: Finland - Uzbekistan
Finland and Uzbekistan signed a DTA Protocol on March 8, 2016.
Treaty Update: Portugal - Senegal
According to preliminary media reports, the DTA between Portugal and Senegal will enter into force on March 20, 2016.
Treaty Update: Kenya - Italy
Kenya and Italy signed a DTA on March 3, 2016.
Treaty Update: Hong Kong - Various
Hong Kong's new DTAs with South Africa, the United Arab Emirates, Vietnam, Japan, and Italy will be effective for Hong Kong taxes from April 1.
Treaty Update: New Zealand - Samoa
The New Zealand-Samoa DTA will become fully effective from April 1, 2016.
Treaty Update: United Kingdom - Uruguay
The UK and Uruguay signed a DTA on March 4.
Treaty Update: Vietnam - Various
On March 1, 2016, in a rare update, the Vietnamese tax authority confirmed the country's recent DTAs with Mozambique, Kazakhstan, San Marino, Serbia, Uruguay, Turkey, Iran, Macedonia, Portugal, and the US are not yet effective.