Tanzania and the Czech Republic have signed a Double Taxation Agreement aimed at eliminating double taxation and preventing tax evasion. The deal is expected to increase investment and business activity between the two countries, particularly in the manufacturing and technology sectors.
The agreement was signed in Dar es Salaam by Tanzania’s Minister for Finance, Dr. Mwigulu Nchemba, and the Ambassador of the Czech Republic to Tanzania, Nicol Adamcová. The agreement aims to ensure that investors and businesses conducting operations between the two countries are subject to taxation only once, rather than being taxed separately in both jurisdictions.
Speaking after the signing ceremony, Minister Nchemba said the agreement would reduce the risk of double taxation, encourage fair tax policies, and build investor confidence. He added that data from the Organization for Economic Co-operation and Development (OECD) reveal that countries with effective double taxation agreements attract up to 30% more foreign direct investment compared to those without such agreements.
He also emphasized that the expected investment would stimulate growth in Tanzania’s production and industrial sectors, and lead to increased employment opportunities.
