Ethiopia, Netherlands Sign DTA

by Lorys Charalambous, Tax-News.com, Cyprus

16 August 2012



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 Updates by Territory


Latest Treaty Updates


Treaty Update: Cyprus - Ethiopia

5/2/2016

Cyprus ratified its DTA with Ethiopia on January 18, 2016.


Treaty Update: Russia - China

5/2/2016

Russia's lower house of Parliament on January 27, 2016, approved a law to ratify the 2014 DTA with China.


Treaty Update: India - Armenia

4/2/2016

India and Armenia signed a DTA Protocol on January 27, 2016.


Treaty Update: New Zealand - Samoa

3/2/2016

Concessionary rates of withholding tax in the New Zealand-Samoa double tax agreement became effective on February 1.


Treaty Update: Qatar - Turkey

29/1/2016

Qatar and Turkey initialed a DTA on January 21, 2016.


Treaty Update: Uruguay - Chile

29/1/2016

Uruguay and Chile concluded DTA negotiations on January 21, 2016.


Treaty Update: Turkey - Turkmenistan

29/1/2016

Turkey and Turkmenistan concluded a first round of DTA negotiations on January 22, 2016.


Treaty Update: Armenia - India

28/1/2016

Armenia and India signed a DTA Protocol on January 27, 2016.


Treaty Update: Turkey - Mexico

28/1/2016

The new DTA between Turkey and Mexico became effective on January 1, 2016.


Treaty Update: Cyprus - Ethiopia

25/1/2016

Cyprus and Ethiopia signed a DTA on December 30, 2015.


Treaty Update: Hong Kong - Russia

25/1/2016

Hong Kong and Russia signed a comprehensive DTA on January 18, 2015.


Treaty Update: Czech Republic - Ukraine

21/1/2016

The Czech Ministry of Finance on January 15, 2016, announced that the Protocol to the DTA with Ukraine entered into force on December 9, 2015.


Treaty Update: India - Belarus

21/1/2016

The Indian Income Tax Department announced on January 13, 2016, that the DTA Protocol with Belarus entered into force on November 19, 2015.


Treaty Update: Canada - Taiwan

20/1/2016

Canada and Taiwan signed a DTA on January 15, 2015.


Treaty Update: Cyprus - Georgia

20/1/2016

The Cyprus-Georgia DTA entered into force on January 4, 2016.


Treaty Update: United Arab Emirates - Hong Kong

19/1/2016

The Hong Kong Government announced that the DTA with the United Arab Emirates entered into force on December 18, 2015.


Treaty Update: United Kingdom - Various

19/1/2016

The UK's DTAs with Croatia and Bulgaria became effective for taxes withheld on source on January 1, 2016. It will become effective in the UK for corporate tax from April 1, 2016, and for income tax and capital gains on April 6, 2015.


Treaty Update: Luxembourg - Serbia

18/1/2016

Luxembourg and Serbia signed a DTA on December 15.


Treaty Update: United Kingdom - Croatia

18/1/2016

The UK Government is to table legislation on January 15, 2015, to bring into force the DTA signed with Croatia.


Treaty Update: Estonia - Various

18/1/2016

Protocols to Estonia's DTAs with China and Switzerland entered info force on January 1, 2016.


Treaty Update: Bahrain - Pakistan

15/1/2016

Bahrain and Pakistan signed a DTA on December 22.


Treaty Update: Ireland - Various

15/1/2016

Ireland's new DTAs with Thailand and Ukraine became effective on January 1, 2016.


Treaty Update: Ukraine - Andorra

15/1/2016

Ukraine's Cabinet on December 30, 2015, approved a draft TIEA and authorized its signing.


Treaty Update: Seychelles - Singapore

13/1/2016

The Seychelles-Singapore DTA became effective on January 1, 2016.


Treaty Update: Singapore - Luxembourg

11/1/2016

The revised DTA between Singapore and Luxembourg entered into force on December 28, 2015.


More Treaty Updates