New deal will see UAE and Tanzania ease bottlenecks on double taxation that hinders bilateral trade

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ABU DHABI - The United Arab Emirates (UAE) and Tanzania have both signed MOU to remove double taxation bottlenecks s in trade between the two countries.

Tanzanian Finance Minister Mwigulu Nchemba while in Dubai met with his counterpart Mohamed Bin Hadi Al Hussain of the UAE on Wednesday where they both signed the Agreement on Avoidance of Double Taxation and Prevention of Fiscal Evasion on Income Taxes.

This newly signed MOU will focus on 31-clause areas like taxation of income from individual and institutional business activities, air and sea transportation operations, immovable properties, interest rates, dividends, natural resource use, workforce salaries, research payments, pension and social security payments, students’ bursaries and sports matters.

Mr. Nchemba added that “This step will help to expand the (Tanzania) government’s tax base by boosting industrial activities and products designed for both domestic and export markets.”

He added that one of the primary aims of the agreement was to establish a more conducive platform for new foreign direct investment (FDI) engagements between Tanzania and the Middle East.

“The double taxation had long been a “point of frustration” for investors and other traders from both UAE and Tanzania, resulting in a lot of lost business opportunities for both countries that can now be better tapped.” Comments Mr. Nchemba.

Mr. Had Al Hussain added that “This new pact is a positive move towards consolidating bilateral trade and business ties that already exist, especially in the area of tax harmonization. I also urged Tanzanian authorities to ensure that investment capital protection protocols were adhered to.”
This new MOU comes months after the Tanzanian president’s visit to the UAE earlier this year.

The Tanzanian President held talks with the Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum.

President Samia met with the ruler of Dubai shortly after addressing the Dubai Expo 2020 that took place on February 2022.

She said that “I would like to take this opportunity to welcome you all to Tanzania, where the business and investment environment are more than conducive. Come one, come all to Tanzania. These two themes embrace the new age of investment and trade with strategic partners like the UAE, in particular, and the Gulf in general.”

GAROWE ONLINE

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