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Approvals delay EAC double taxation law

10 March 2015

Uganda, Tanzania and Burundi are yet to secure internal approvals for the Double Taxation Agreement (DTA) to operate in East Africa, five years after the deal was struck.

Uganda, Tanzania and Burundi are yet to secure internal approvals for the Double Taxation Agreement (DTA) to operate in East Africa, five years after the deal was struck. This has left companies with cross-border investments paying tax twice on their incomes. The initial deadline was July last year, but it was extended to November 2014 after all the EAC member countries failed to meet the timelines. The agreement is expected to lower taxes and increase cross-border investments. Kenya’s Principal Secretary in charge of East African Affairs John Konchellah said the two countries have deposited their internal consent documents with the EAC Secretariat and dismissed fears that there is lack of commitment from their regional counterparts. Currently, EAC governments tax income earned by investors both in the country where it is generated and in the country where the taxpayer originates, subjecting companies to the double taxation dilemma.
http://www.theeastafrican.co.ke/business/Approvals-delay-EAC-double-taxation-law-/-/2560/2608588/-/ok6lhlz/-/index.html

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