MoF, Tanzania sign avoidance of double taxation agreement

As part of its endeavours to strengthen cooperation frameworks in tax matters, protect taxpayers from double taxation, and avoid impeding the flow of trade and investment, the Ministry of Finance (MoF) recently signed an agreement for the Avoidance of Double Taxation and Prevention of Tax Evasion with respect to taxes on income with Tanzania.

Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs, signed the agreement on behalf of the UAE, while Dr Mwigulu Lameck Nchemba, Minister of Finance and Planning of the Republic of Tanzania, signed it on behalf of Tanzania.

The agreement was signed at the ministry’s headquarters in Dubai, in the presence of Abdullah Ahmed Al Obaidly, Director of Relations and International Financial Organisations at the MoF; and officials from both parties.

Mohamed Bin Hadi Al Hussaini stressed on the importance of consolidating the financial, economic, and investment relations between the UAE and Tanzania. This comes in line with both countries’ efforts to boost cooperation in tax fields, increase investment opportunities, encourage trade exchange, and promote development goals by diversifying sources of national income and providing full protection for goods and services.

He said: “The Ministry of Finance will continue to strengthen trade and investment ties with all its trade partners. This is by devising mechanisms that explain to investors the financial status of their operations in commercial, economic, and financial activities and any other activities in countries with which the UAE has active economic relations.”

During the meeting, both parties deliberated means of bolstering bilateral relations and agreed on the need to continue enhancing joint cooperation and work in various fields. They also exchanged views on certain international issues of common interest.

Avoidance of double taxation agreements serve several purposes. They promote the development goals of the UAE and diversify its sources of national income, eliminate double taxation and fiscal evasion, remove the difficulties relating to cross-border trade and investment flows, and offer full protection to taxpayers from double taxation.

That, in addition to avoiding obstructing the free flow of trade and investment, taking into consideration the taxation issues and the global changes, as well as encouraging the exchange of goods, services and capital movements.

To date, the United Arab Emirates concluded 139 Avoidance of Double Taxation Agreements.

Earlier the Ministry of Finance (MoF) signed a memorandum of understanding (MoU) with the UAE Internal Auditors’ Association (UAE-IAA) for a period of three years, and it will automatically renew.

The MoU, which was signed at MoF’s headquarters in Dubai, is aimed at boosting cooperation in community initiatives and projects, exchanging internal systems and work procedures, and improving internal auditing services. Fatima Alnaqbi, Acting Assistant Under-Secretary for Support Services Sector at MoF, signed the MoU on behalf of the ministry; and Abdulqader Obaid Ali, UAE-IAA’s Board of Governors Chairman, signed it on behalf of the UAE-IAA.

Fatima Alnaqbi emphasised the importance of this MoU in boosting joint efforts to improve the services provided by both parties and strengthen internal capabilities. This is by organising events, activities, training courses, and workshops aimed at ensuring that international best practices are applied in all aspects of work. “The Ministry of Finance works with all the relevant parties to hold seminars and workshops that are aligned with our high-standard services, and to exchange experiences in the field of internal work procedures and systems.

This stems from the ministry’s keenness to drive progress and serve the public interest, particularly as internal auditing issues are key in ensuring credibility and transparency in government financial work,” she stated.

Abdulqader Ali stressed on the importance of cooperating with the Ministry of Finance through this MoU, which will serve as the bedrock of laying internal auditing foundations and standards – ones that are in accordance with the best international practices across all the relevant fields. Additionally, he mentioned that such internal auditing standards will help ensure integrity, transparency, and equal opportunities to uncover and improve competencies.

They also help in devising general frameworks that support solving financial issues transparently, thus enhancing the quality of finance-related affairs.

Under this MoU, the MoF will provide the needed facilities and human competencies to implement internal auditing programmes and activities.