UAE, Tanzania sign double tax avoidance deal
The Emirates is also pursuing renewable energy projects in the southern African country.
The United Arab Emirates (UAE) and Tanzania signed an agreement today on double taxation.
The deal relates to preventing double taxation as well as tax evasion. It seeks to strengthen tax cooperation between the UAE and the southern African country and “avoid impeding the flow of trade and investment,” the Emirati Ministry of Finance said in a statement.
What it means: Double taxation occurs when the same income is taxed by different entities. It can occur in international trade and investment, e.g., if an Emirati citizen earns a profit from a business in Tanzania. Some countries, such as the United States, allow deductions for foreign taxes paid.
Why it matters: The agreement further indicates the UAE’s desire to remove barriers to bilateral investment and trade with Tanzania. The UAE’s ties to the country are growing. In August, the Emirati renewable energy firm Masdar agreed to develop solar and wind power projects in Tanzania.
