Ethiopia, Netherlands Sign DTA

by Lorys Charalambous,, 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: Japan - Panama


Japan's Ministry of Finance on May 23, 2016, announced that it had agreed a TIEA in principle with Panama.

Treaty Update: Jamaica - Mexico


According to preliminary media reports, Jamaica and Mexico signed a DTA on May 18, 2016.

Treaty Update: Poland - Barbados


Poland and Barbados intend to negotiate a DTA, the Barbados Government said on May 19, 2016.

Treaty Update: Kosovo - United Arab Emirates


Kosovo and the United Arab Emirates have signed a DTA, Kosovo's Foreign Affairs Ministry confirmed on May 20, 2016.

Treaty Update: Ghana - Japan


Ghana and Japan have decided to launch negotiations towards a DTA.

Treaty Update: Switzerland - Bahrain


Bahrain and Switzerland initialled a double tax agreement at a meeting on May 12, 2016.

Treaty Update: Hong Kong - Various


Two Orders to implement Hong Kong's double tax agreements with Russia and Romania were forwarded to the territory's Parliament, as part of the domestic ratification process, on May 13, 2016.

Treaty Update: India - Singapore


India's Finance Minister, Arun Jaitley, has confirmed that India intends to launch negotiations to conclude a DTA Protocol with Singapore by the end of India's fiscal year end.

Treaty Update: United Arab Emirates - Mozambique


Representatives from the United Arab Emirates and Mozambique have agreed to speed up negotiations towards a double tax agreement, during a Dubai Chamber trade mission to Mozambique on May 8.

Treaty Update: Uzbekistan - Finland


Uzbekistan on May 16, 2016, confirmed that it has ratified the Protocol signed with Finland to amend their double tax agreement.

Treaty Update: Germany - Netherlands


Germany's lower house of Parliament on May 11, 2016, approved a new DTA with the Netherlands, which would replace their existing agreement dating back to 1956.

Treaty Update: Singapore - Thailand


A new DTA between Singapore and Thailand will become effective on January 1, 2017, following the completion of domestic ratification procedures.

Treaty Update: Bahrain - Egypt


Bahrain's Cabinet on April 25, 2016, approved a draft DTA with Egypt.

Treaty Update: Zimbabwe - South Africa


Zimbabwe on April 8, 2016, ratified the DTA with South Africa.

Treaty Update: Kyrgyzstan - Estonia


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.

More Treaty Updates