Ethiopia and Hungary have entered the second round of negotiations on a Double Taxation Avoidance Agreement (DTAA), the Ethiopian Ministry of Finance announced. The discussions, held in Addis Ababa, aim to enhance bilateral economic cooperation by establishing a more transparent and predictable environment for trade and investment.

This round follows an initial negotiation session conducted in Budapest, where both parties made progress and expressed optimism about finalizing the agreement. Officials say the current discussions are focused on resolving a few outstanding matters, with most major issues already addressed in the earlier talks.

According to the Ministry, the DTAA is expected to play a key role in eliminating double taxation for businesses and investors operating in both countries. By doing so, it will foster greater economic interaction and facilitate the expansion of trade and investment flows between Ethiopia and Hungary.

The negotiations build on a Memorandum of Understanding signed between the two nations on April 12, 2016. That agreement laid the foundation for cooperation in multiple areas, including mutual investment protection and the waiver of diplomatic and service visa requirements.

Once finalized and implemented, the Double Taxation Avoidance Agreement is anticipated to serve as a catalyst for deeper economic ties and increased investor confidence between the two countries.

Source: Capital Ethiopia (Telegram Page)