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: Singapore - Ethiopia
According to preliminary media reports, Singapore has expressed interest in launching DTA negotiations with Ethiopia.
Treaty Update: New Zealand - Marshall Islands
New Zealand's TIEA with the Marshall Islands entered into force on April 9, 2015.
Treaty Update: Portugal - Saudi Arabia
Portugal and Saudi Arabia signed a DTA on April 8, 2015.
Treaty Update: United Arab Emirates - Ethiopia
The United Arab Emirates and Ethiopia signed a DTA on April 13, 2015.
Treaty Update: Iraq - Kuwait
Iraq's Cabinet has approved the launch of negotiations towards a DTA with Kuwait, according to a statement released on April 2, 2015.
Treaty Update: Seychelles - Guernsey
The Seychelles has adopted legislation ratifying the DTA signed with Guernsey.
Treaty Update: Mexico - Guatemala
Mexico and Guatemala signed a DTA on March 13, 2015.
Treaty Update: Vietnam - Myanmar
According to preliminary media reports on March 17, Vietnam and Myanmar (Burma) are to engage in negotiations towards a DTA.
Treaty Update: Iraq - Kuwait
According to preliminary media reports, Iraq's Cabinet on March 31, 2015, approved the negotiation and signing of a DTA with Kuwait.
Treaty Update: Poland - Bermuda
The TIEA between Poland and Bermuda entered into force on March 15, 2015.
Treaty Update: Italy - Holy See (Vatican City)
Italy and the Vatican signed a TIEA on April 1, 2015.
Treaty Update: Cyprus - South Africa
Cyprus and South Africa signed a Protocol to their DTA on April 1, 2015.
Treaty Update: Bulgaria - United Kingdom
Bulgaria and the United Kingdom have signed a new DTA, the Bulgarian Ministry of Finance confirmed on March 26, 2015.
Treaty Update: United Kingdom - Sweden
The United Kingdom and Sweden signed a DTA on March 26, 2015.
Treaty Update: United Kingdom - Monaco
The UK Government on March 19, 2015, tabled legislation in the House of Commons that would ratify the pending TIEA with Monaco.
Treaty Update: Vietnam - Iran
The Vietnamese Ministry of Finance on March 26, 2015, confirmed that the Government has approved the DTA signed with Iran.
Treaty Update: United Arab Emirates - Comoros
The United Arab Emirates signed a DTA with Comoros on March 26, 2015.
Treaty Update: Qatar - Belgium
Qatar and Belgium signed a DTA on March 22, 2015.
Treaty Update: Rwanda - Various
Rwanda's Cabinet on March 20, 2015, approved draft legislation that would ratify DTAs with Singapore and Barbados.
Treaty Update: Ghana - Netherlands
According to preliminary media reports on March 26, 2015, Ghana and the Netherlands have signed a TIEA.
Treaty Update: Luxembourg - Uruguay
Luxembourg's Government on March 10, 2015, confirmed that it has recently signed a DTA with Uruguay.
Treaty Update: Russia - China
The Russian Government confirmed on March 18, 2015, that it has agreed to sign a Protocol with China to amend their DTA.
Treaty Update: Pakistan - Austria
Pakistan and Austria signed an additional Protocol to amend their DTA on March 17, 2015.
Treaty Update: Belarus - Malaysia
According to a report from Belarus's state news agency on March 17, 2015, Belarus and Malaysia have newly initialed a DTA.
Treaty Update: Hungary - Luxembourg
Hungary and Luxembourg signed a DTA on March 10, 2015.