TZ, Qatar sign pact to avoid double taxation

DOHA: TANZANIA and Qatar have signed an agreement aimed at avoiding double taxation and preventing tax evasion, in a move expected to strengthen trade, investment and economic cooperation between the two countries.

The Double Taxation Agreement (DTA) was signed on Tuesday by Tanzania’s Minister for Finance, Ambassador Khamis Mussa Omar and Qatar’s Minister for Finance, Ali Bin Ahmed Al Kuwari.

The signing took place on the sidelines of the 11th Annual Meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB), held in Doha, Qatar.

Ambassador Omar said the agreement was intended to improve the business environment between the two countries and promote economic growth.

“This agreement reflects the strong friendship between our two countries and our shared commitment to building a modern, fair and investor-friendly framework that is aligned with international standards,” he said.

He said eliminating double taxation would promote cross-border trade, investment and business activities while creating a more transparent and predictable environment for investors.

The agreement, he added, would also strengthen cooperation between tax authorities in the two countries and support international efforts to combat tax evasion and tax avoidance while protecting the tax interests of both countries.

Ambassador Omar said Tanzania expected to attract new investment in sectors including infrastructure, energy, tourism, transport and logistics, agriculture and financial services.

“Tanzania views this agreement as an opportunity to attract new investment across various sectors,” he said.

He thanked technical teams, tax experts, legal advisers and government officials from both countries for their contribution towards concluding the agreement. He said both countries would now focus on the swift implementation of the agreement and deeper economic cooperation for the mutual benefit of their citizens.

On the business front, Ambassador Omar said removing double taxation on income was expected to reduce operating costs for companies working in both countries and provide greater certainty for investors seeking to expand their operations.

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For his part, Qatar’s Minister for Finance, Mr Ali Bin Ahmed Al Kuwari, described Tanzania as an important economic partner and said removing double taxation barriers on income generated from business activities between the two countries would help attract more investment and capital.

He reaffirmed Qatar’s commitment to strengthening cooperation with Tanzania, noting that the Qatar Investment Authority (QIA) and Qatar Fund for Development (QFFD) were already involved in various projects in Tanzania.

Mr Al Kuwari also expressed Qatar’s readiness to support the exchange of knowledge and expertise, rather than simply transferring knowledge.

He underscored the importance of cooperation in the oil and gas sector, saying agreements to avoid double taxation were important for existing projects in Tanzania as well as new ventures involving investors from the two countries.

The agreement is expected to provide greater clarity on the taxation of cross-border income and strengthen the framework for increased economic engagement between Tanzania and Qatar.