Mauritius and Gabon sign Agreements on Taxation and Investment

Mauritius and Gabon signed yesterday in Port Louis a Double Taxation Avoidance Agreement (DTAA) and an Investment Promotion and Protection Agreement (IPPA) to enhance economic ties and provide greater tax certainty for businessmen between the two countries.

The signatories were the Vice-Prime Minister, Minister of Finance and Economic Development, Mr Xavier-Luc Duval, and the Minister of Foreign Affairs, International Cooperation and the Francophonie, in charge of NEPAD and Regional Integration of Gabon, Mr Emmanuel Issoze Ngondet. The Minister of Foreign Affairs, Regional Integration and International Trade, Dr Arvin Boolell and the Minister of Agriculture, Fisheries and Rural Development, of Gabon, Mr Julien Nkoghe Bekale, were also present.

The DTAA will give a further spur to the positive evolution of economic ties between the two countries while making clear the taxing rights of Mauritius and Gabon on all forms of income arising from cross-border economic activities between the two countries. Under the agreement, double taxation which is an impediment to cross-border activities will be eliminated. It also provides for reduced taxation at source or exemption on various sources of income.

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.

The agreements also provide for an exchange of information between the two countries based on the most recent version of the Organisation for Economic Co-operation and Development (OECD) Model article on exchange of information.

Speaking on the occasion, the Vice-Prime Minister, Minister of Finance and Economic Development, Mr Duval, said the agreements will help generate trade activities, transfer of technology, promote management skills of entrepreneurs between both countries. Besides, he added, it will help investors from Mauritius and Gabon to explore possibilities for mutually profitable ventures.

For his part, the Minister of Foreign Affairs of Gabon, Mr Emmanuel Issoze Ngondet, 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 while strengthening the bilateral relations between Gabon and Mauritius. He underlined that the Gabonese authorities will look into possibilities of joint ventures while giving a boost to the economies of both countries as well as the issue as regards visa entry for Mauritians in Gabon.

Mauritius has to date signed 43 Double Taxation Avoidance Agreements and 38 Investment Promotion and Protection Agreements with several countries. The country is also committed to developing a Tax Information Exchange Agreement with countries where there is no Double Taxation Agreement