India Sign DTAA with Tanzania and Ethopia

India has signed DTAA Double taxation avoidance agreement with Tanzania and Ethopia. Double tax aviod agreement is the deal between two countries by which the tax payer need to pay income tax to one country of which it dues, and by showing the certificates of income tax paid, the second country can not ask to repay the income tax. Some transactions are like this in which one works part time to different country or work in home country to the foreign country. In such cases the Double taxation avoid agreement works.


The Government of the Republic of India signed a Double Taxation Avoidance 
Agreement (DTAA) with the United Republic of Tanzania for the avoidance of double 
taxation and for the prevention of fiscal evasion with respect to taxes on income on 27
th
 May, 
2011 at Dar es Salaam. The Agreement was signed by  Mr K V Bhagirath, High 
Commissioner of India on behalf of the Government of India and by Mr Pereira Ame Silima, 
Deputy Minister of Finance on behalf of the United Republic of Tanzania in the presence of 
the Prime Minister, Dr Manmohan Singh and the President of Tanzania Mr Kikwete. 
The DTAA provides that business profits will be taxable in the source state if the 
activities of an enterprise constitute a permanent establishment in the source state. Examples 
of permanent establishment include a branch, factory, etc. Profits of a construction, assembly 
or installation projects will be taxed in the state of source if the project continues in that state 
for more than 270 days. 
Profits derived by an enterprise from the operation of ships or aircrafts in 
international traffic shall be taxable in the country of residence of the enterprise. Dividends, 
interest and royalties income will be taxed both in the country of residence and in the country 
of source. However, the maximum rate of tax to be charged in the country of source will not 
exceed a two-tier 5% or 10% in the case of dividends and 10% in the case of interest and 
royalties. Capital gains from the scale of shares will be taxable in the country of source. 
The Agreement further incorporates provisions for effective exchange of information 
and assistance in collection of taxes between tax authorities of the two countries in line with 
internationally accepted standards including exchange of banking information and 
incorporates anti-abuse provisions to ensure that the benefits of the Agreement are availed of 
by the genuine residents of the two countries. 
The Agreement will provide tax stability to the residents of India and Tanzania and 
facilitate mutual economic cooperation as well as stimulate the flow of investment, 
technology and services between India and Tanzania

The Government of the Republic of India signed a Double Taxation Avoidance 
Agreement (DTAA) with the Federal Democratic Republic of Ethiopia for the avoidance of 
double taxation and for the prevention of fiscal evasion with respect to taxes on income on 
25
th
 May, 2011 at Addis Ababa. The Agreement was signed by Shri S.M.  Krishna, External 
Affairs Minister on behalf of the Government of India and by Mr. Sufian Ahmed, Minister of 
Finance and Economic Development on behalf of the Federal Democratic Republic of 
Ethiopia in the presence of the Prime Minister, Dr. Manmohan Singh and the Ethiopian 
Prime Minister. Mr. Meles Zenawi. 
The DTAA provides that business profits will be taxable in the source state if the 
activities of an enterprise constitute a permanent establishment in the source state. Examples 
of permanent establishment include a branch, factory, etc. Profits of a construction, assembly 
or installation projects will be taxed in the state of source if the project continues in that state 
for more than 183 days. 
Profits derived by an enterprise from the operation of ships or aircrafts in 
international traffic shall be taxable in the country of residence of the enterprise. Dividends, 
interest, royalties and fees for technical services income will be taxed both in the country of 
residence and in the country of source. However, the maximum rate of tax to be charged in 
the country of source will not exceed 7.5% in the case of dividends and 10% in the case of 
interest, royalties and fees for technical services. Capital gains from the scale of shares will 
be taxable in the country of source. 
The Agreement further incorporates provisions for effective exchange of information 
and assistance in collection of taxes between tax authorities of the two countries in line with 
internationally accepted standards including exchange of banking information and 
incorporates anti-abuse provisions to ensure that the benefits of the Agreement are availed of 
by the genuine residents of the two countries. 
The Agreement will provide tax stability to the residents of India and Ethiopia and 
facilitate mutual economic cooperation as well as stimulate the flow of investment, 
technology and services between India and Ethiopia.
Tags- dtaa,double taxation aviodance agreement
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