Tanzania, Turkey sign agreement on double taxation, prevention of tax evasion

DAR ES SALAAM: THE Tanzanian  government and the government of Turkey have signed two key agreements on the Avoidance of Double Taxation (Double Taxation Agreement – DTA) and the Prevention of Tax Evasion on Income, in a move aimed at strengthening the business and investment environment between the two countries.

The signing ceremony was held in Dar es Salaam, where Tanzania was represented by the Minister for Finance, Ambassador Khamis Mussa Omar.

Speaking during the ceremony, Ambassador Omar said the agreement is the 13th of its kind for Tanzania with various countries worldwide and is intended to boost investor confidence by eliminating the challenge of being taxed twice in different jurisdictions.

He noted that such agreements, when combined with Bilateral Investment Treaties (BITs), serve as a major catalyst for economic growth by enhancing the flow of foreign direct investment (FDI) and international trade.

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According to Ambassador Omar, studies show that countries with strong double taxation avoidance agreements tend to attract higher levels of foreign direct investment, placing Tanzania in a strong position to benefit from capital inflows from Turkey and other countries.

He further explained that although Tanzania and Turkey have had an investment protection agreement since 2011, the absence of a double taxation avoidance agreement had created a gap that limited the full effectiveness of economic relations, which has now been officially addressed.

He said the development sends a strong positive signal to Turkish investors that Tanzania is ready to receive and expand trade and investment.

Ambassador Omar also noted that economic relations between Tanzania and Turkey have continued to grow, particularly following President Samia Suluhu Hassan’s official visit to Turkey in 2024, during which bilateral trade reached 281.68m US dollars , with Turkey emerging as the larger exporter of goods to Tanzania.