A first round of discussions on a revised Double Taxation Avoidance Agreement (DTAA) between the Federal Republic of Germany and Mauritius ended yesterday at the headquarters of the Mauritius Revenue Authority (MRA) in Port Louis.
An official delegation from the Federal Republic of Germany, headed by Dr Wolfgang Lasars from the Federal Ministry of Finance, was in Mauritius since the 18 March in the context of a revision round on the existing Mauritius-Germany DTAA which dates as far back as 1978.
The Mauritian negotiating team comprised a representative from the MRA, the State Law Office and the Ministry of Finance and Economic Empowerment.
At this stage, both parties have agreed on some of the provisions of the new treaty and further discussions will be pursued at a second round before finalising the treaty which will be beneficial in terms of boosting economic transactions as well as encouraging cross-border transactions between both countries.
Double tax treaties comprise of agreements between two countries which, by eliminating international double taxation, promote exchange of goods, services and investment of capital. They are bilateral economic agreements where the countries concerned evaluate the sacrifices and advantages which the treaty brings for each contracting State, including tax forgone and compensating economic advantages.
The objectives of double taxation avoidance agreements are to help in avoiding and alleviating the adverse burden of international double taxation by means of laying down rules for division of revenue between two countries, by exempting certain incomes from tax in either country, and reducing the applicable rates of tax on certain incomes taxable in either countries.
It is recalled that so far Mauritius has concluded 34 tax treaties and is party to a series of treaties under negotiation.
An official delegation from the Federal Republic of Germany, headed by Dr Wolfgang Lasars from the Federal Ministry of Finance, was in Mauritius since the 18 March in the context of a revision round on the existing Mauritius-Germany DTAA which dates as far back as 1978.
The Mauritian negotiating team comprised a representative from the MRA, the State Law Office and the Ministry of Finance and Economic Empowerment.
At this stage, both parties have agreed on some of the provisions of the new treaty and further discussions will be pursued at a second round before finalising the treaty which will be beneficial in terms of boosting economic transactions as well as encouraging cross-border transactions between both countries.
Double tax treaties comprise of agreements between two countries which, by eliminating international double taxation, promote exchange of goods, services and investment of capital. They are bilateral economic agreements where the countries concerned evaluate the sacrifices and advantages which the treaty brings for each contracting State, including tax forgone and compensating economic advantages.
The objectives of double taxation avoidance agreements are to help in avoiding and alleviating the adverse burden of international double taxation by means of laying down rules for division of revenue between two countries, by exempting certain incomes from tax in either country, and reducing the applicable rates of tax on certain incomes taxable in either countries.
It is recalled that so far Mauritius has concluded 34 tax treaties and is party to a series of treaties under negotiation.
No comments:
Post a Comment