The Ethiopian House of Representatives ratified double taxation and fiscal evasion agreements with the governments of the Seychelles and the United Kingdom.

The agreement with the United Kingdom was signed in June of 2011 during the UK-Ethiopia Investment Forum, Taxes included in the agreement include Ethiopian income and profit taxes and taxes on income from activities in the agriculture, mining and petroleum sectors as well as UK income, corporation and capital gain taxes.

The strong bilateral relationship between the two countries means that the approval by the Ethiopian Parliament is welcomed by the UK said Greg Dorey, British Ambassador to Ethiopia.

The agreement will strengthen relations between the two countries, by providing tax stability to the residents of the UK and Ethiopia, according to Dorey. Mutual economic cooperation, as well as the flow of investment, technology and services, will also be facilitated, he added.

The taxes to be considered in the case of the Seychelles include income and monetary benefits tax, business tax and petroleum income tax while the Ethiopian side of the agreement is the same as the agreement reached with England.

These agreements are designed to eliminate double taxation on income or other gain being earned in one of the countries and paid to residents of the other. The agreement also ensures the elimination of discrimination in tax treatment. The governments of the two countries are charged with facilitating the processes according to the agreement.

Source: Fortune