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: Belarus - Pakistan
According to preliminary media reports, Belarus Council of the Republic on June 14 ratified the DTA signed with Pakistan.
Treaty Update: Kenya - China
Kenya and China are in the process of negotiating a DTA, it was announced during a bilateral meeting on June 9.
Treaty Update: Turkey - Belgium
On June 24, 2016, Turkey ratified the DTA Protocol with Belgium.
Treaty Update: Taiwan - Japan
The Taiwan-Japan DTA signed in November 2015 entered into force on June 13.
Treaty Update: Turkmenistan - Czech Republic
According to preliminary media reports, Turkmenistan has ratified its DTA with the Czech Republic.
Treaty Update: Japan - Latvia
Japan and Latvia have begun DTA negotiations, the Japanese Finance Ministry said on June 21.
Treaty Update: Hungary - Turkmenistan
Hungary and Turkmenistan signed a DTA on June 1.
Treaty Update: Ghana - Barbados
Ghana and Barbados have signed a DTA, Barbados's inward investment agency said on June 9, 2016, noting that it is awaiting ratification.
Treaty Update: New Zealand - Fiji
During a meeting on June 10, 2016, New Zealand and Fiji called for the conclusion of a DTA.
Treaty Update: Turkmenistan - United Kingdom
Turkmenistan and the UK have signed a DTA, it was announced on June 10, 2016.
Treaty Update: Latvia - Iran
Latvia and Iran discussed the possibility of signing a DTA, at a meeting on June 2.
Treaty Update: Kenya - Turkey
Kenya and Turkey intend to fast track the signing of a DTA, it was said after a meeting on June 2.
Treaty Update: Turkmenistan - Hungary
Turkmenistan confirmed on July 7 that it had signed a DTA with Hungary.
Treaty Update: Singapore - France
A DTA between Singapore and France entered into force on June 1, 2016.
Treaty Update: Turkey - Somalia
Turkey and Somalia signed a DTA on June 3, 2016.
Treaty Update: Cyprus - Latvia
Cyprus and Latvia signed a DTA on May 24, 2016.
Treaty Update: Seychelles - Slovenia
The Seychelles and Slovenia are negotiating a DTA, the Seychelles Government announced on May 18, 2016.
Treaty Update: Singapore - Cambodia
Singapore and Cambodia signed a DTA on May 20, 2016.
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.