UAE’s Ministry of Finance (MoF) has signed an agreement for the Avoidance of Double Taxation and Prevention of Tax Evasion with respect to taxes on income with Tanzania, as part of its endeavors to strengthen cooperation frameworks in tax matters, protect taxpayers from double taxation, and avoid impeding the flow of trade and investment.
The deal comes in line with both countries’ efforts to boost cooperation in tax fields, increase investment opportunities, encourage trade exchange, and promote development goals by diversifying sources of national income and providing full protection for goods and services.
During the meeting, both parties deliberated means of bolstering bilateral relations and agreed on the need to continue enhancing joint cooperation and work in various fields. They also exchanged views on certain international issues of common interest.
His Excellency Mohamed Bin Hadi Al Hussaini, UAE Minister of State for Financial Affairs, stressed the importance of consolidating the financial, economic, and investment relations between the UAE and Tanzania.
“The Ministry of Finance will continue to strengthen trade and investment ties with all its trade partners. This is by devising mechanisms that explain to investors the financial status of their operations in commercial, economic, and financial activities and any other activities in countries with which the UAE has active economic relations,” the UAE minister added.
Avoidance of double taxation agreements serve several purposes. They promote the development goals of the UAE and diversify its sources of national income, eliminate double taxation and fiscal evasion, remove the difficulties relating to cross-border trade and investment flows, and offer full protection to taxpayers from double taxation.
“That, in addition to avoiding obstructing the free flow of trade and investment, taking into consideration the taxation issues and the global changes, as well as encouraging the exchange of goods, services and capital movements,” as per the statement.