SIGNING CEREMONY BETWEEN GHANA AND THE NETHERLANDS ON AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION



The Minister of State at the Ministry of Finance and Economic Planning, Dr. Anthony Akoto- Osei and The Netherlands State Secretary of Finance, Hon. J.C. De Jager have signed a treaty on the Avoidance of Double Taxation and Fiscal Evasion, to facilitate trade and investment between the two countries.

Dr. Anthony Akoto-Osei, Minister of State at the Ministry of Finance signing on behalf of the government of Ghana said the purpose of the agreement is to facilitate cross- border trade and investment through the elimination of tax impediments to cross-border trade.

Thus, the treaty will enable Ghana “achieve the elimination of double taxation, prevention of fiscal evasion, elimination of discrimination against foreign nationals and non-residents in trading activities”.

Further more, it is to create an enabling environment for foreign direct investment in flows to Ghana and the Netherlands. He also added that “Netherlands has contributed immensely to development projects and programmes in the economy, notably within the water and sanitation, health and road sector.

Jan Kees de Jager, Netherlands State Secretary of Finance, said Ghana is a very important trading partner of the Netherlands in Sub-Saharan Africa, and the treaty would further strengthen the existing bilateral cooperation. He also added that the Treaty would serve as a prerequisite for the promotion of mutual investments and trade between the two countries and would not only help prevent double taxation but also double non-taxation.

The Treaty, he said would provide certainty to Companies, organizations and individuals on the fiscal treatment and capital gains from countries involved and would significantly reduce the administrative burden relating to taxation of income and capital gains for both tax payers and the respective tax administrations. Finally, Mr. Jager thanked Ghanaian Officials for working together constructively towards concluding the Treaty.

Negotiations on the Convention on the Avoidance of Double Taxation and Prevention of Fiscal Evasion between Ghana and the Netherlands began in December, 2006 at The Hague and were concluded in February, 2007 in Accra. The signing was witnessed by the Ambassador of the Netherlands to Ghana, Her Excellency, Lidi Reemmelzwall and other officials of the Netherlands government and the government of Ghana.

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