A Double Taxation Avoidance Agreement (DTAA) and an Investment Promotion and Protection Agreement (IPPA) between Mauritius and Congo were signed yesterday in Port Louis by the Vice-Prime Minister, Minister of Finance and Economic Development, Mr Pravind Jugnauth, and the Minister of Foreign Affairs and La Francophonie of the Republic of the Congo, Mr Basile Ikouébé.
The DTAA which will give a further spur to the positive evolution of economic ties between the two countries will provide greater tax certainty for businessmen while making clear the taxing rights of Mauritius and Congo on all forms of income arising from cross-border economic activities between the two countries. As regards the IPPA, it will give a boost to cross-border investment by protecting investors from direct or indirect double taxation and enhance the commercial and economic relations between the two countries and broaden investment opportunities for the business community. It will also be easier for Investors from both countries to invest their capital and repatriate their investments and profits to their respective countries.
Speaking on the occasion, the Vice-Prime Minister, Minister of Finance and Economic Development, stressed the importance of Foreign Direct Investment (FDI) which according to him is an instrument which contributes largely to the economic development and growth of a country. He also underscored that the influx of foreign investment is a major driver of growth and generates financial resources for business, causes the transfer of technology, promotes the development of capacity of managers and entrepreneurs and creates employment opportunities. According to him, Mauritius, being an emerging economy and due to its strategic location has a central role in facilitating trade and investment. Mauritius is particularly interested in closer cooperation with Congo in the areas of investment and trade and concrete actions should be taken to increase the trade volume between the two countries, he said.
The Minister of Foreign Affairs and La Francophonie of the Republic of the Congo, for his part, qualified the agreement as a significant achievement that demonstrates the commitment of both countries towards promoting cooperation and consolidating efforts in areas of mutual interests. He also underlined that Mauritius serves as a development model for Congo which is currently seeking assistance from Mauritius to develop an export processing zone (EPZ) and also explore mutually profitable business opportunities between the two countries.
It will be recalled that Mauritius has so far signed thirty seven Double Taxation Avoidance Agreements with several countries and the country is also committed to developing a Tax Information Exchange Agreement with countries where there is no Double Taxation Agreement with us.
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