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: Estonia - Various
According to an update published on the website of Estonia's Parliament, legislation to ratify Estonia's double tax agreement's with Luxembourg and Switzerland has been approved and was forwarded, on February 12, to the nation''s President to complete the nation's domestic ratification procedures.
Treaty Update: Italy - Liechtenstein
Italy and Liechtenstein signed a TIEA on February 26, 2015.
Treaty Update: India - Bahrain
During the first, two-day India-Bahrain High Joint Commission Meeting that concluded on February 23, 2015, India and Bahrain agreed to resume DTA negotiations, which had been abandoned despite the initialing of an agreement in 1998.
Treaty Update: Seychelles - Various
Legislation to ratify the Seychelles' DTAs with Singapore and Kenya was tabled in the National Assembly on March 2, 2015.
Treaty Update: Hong Kong - Vietnam
The Government of Hong Kong on February 23, 2015, confirmed that a second Protocol to the DTA with Vietnam entered into force on January 8, 2015, and will become effective in Hong Kong for years of assessment beginning on or after April 1, 2016.
Treaty Update: United Kingdom - Senegal
The United Kingdom and Senegal signed a DTA on February 26, 2015.
Treaty Update: Hong Kong - Germany
Germany and Hong Kong are to hold a second round of double tax agreement negotiations over five days concluding on March 6, 2015.
Treaty Update: Czech Republic - Cook Islands
The Czech Republic on February 24, 2015, signed a tax information exchange agreement with the Cook Islands.
Treaty Update: Switzerland - Italy
Switzerland and Italy signed a DTA on February 23, 2015.
Treaty Update: Belgium - Uzbekistan
According to preliminary media reports, Belgium and Uzbekistan signed a protocol amending their DTA on February 18, 2015.
Treaty Update: Japan - Qatar
Japan signed a DTA with Qatar on February 20, 2015.
Treaty Update: Turkey - Mexico
Turkey approved a law ratifying the DTA with Mexico on February 4, 2015.
Treaty Update: Germany - Norway
The protocol amending the existing DTA between Germany and Norway entered into force on February 3, 2015, and is effective retroactively from January 1, 2015.
Treaty Update: Colombia - Czech Republic
Colombia approved a law ratifying the DTA with the Czech Republic on February 11, 2015.
Treaty Update: Barbados - Israel
Barbados and Israel are engaged in negotiations towards the conclusion of a DTA, it was confirmed at a meeting on January 22, 2015.
Treaty Update: Italy - Luxembourg
The DTA Protocol between Italy and Luxembourg came into effect on January 20, 2015.
Treaty Update: United Kingdom - Algeria
The United Kingdom signed a DTA with Algeria on February 18, 2015.
Treaty Update: South Africa - Barbados
A notice was published in the South Africa official gazette on February 17, 2015, reporting that the TIEA with Barbados entered into force on January 19, 2015.
Treaty Update: Macau - Sweden
The Macau government announced on February 18, 2015, that the TIEA with Sweden entered into force and became effective on January 15, 2015.
Treaty Update: Italy - Liechtenstein
Italy's Ministry of Economy and Finance announced on February 13, 2015, that a TIEA with Liechtenstein had been initialed.
Treaty Update: Belgium - Greece
At its meeting on January 30, 2015, Belgium's Cabinet approved the pending DTA Protocol signed between Belgium and Greece.
Treaty Update: Bahrain - Hungary
According to preliminary media reports, the Shura Council of Bahrain on February 15, 2015, approved a law that would ratify the DTA signed with Hungary.
Treaty Update: Croatia - India
A DTA between Croatia and India entered into force on February 11, 2015, according to information published by the Croatian Ministry for Foreign Affairs. The treaty was signed on February 12, 2015.
Treaty Update: Ireland - Marshall Islands
The TIEA between Ireland and the Marshall Islands entered into force on February 10, 2015, and is effective from that date.
Treaty Update: Qatar - Bangladesh
Qatar's Cabinet ratified the pending DTA between Qatar and Bangladesh at its meeting on February 4, 2015.