Ethiopia and the Netherlands signed a bilateral trade agreement to avoid double taxation to develop the trade system between the two countries, enhance investment activities as well as allowing transfer of technology between the two countries.

The trade accord was signed between Alemayehu Gujo, State Minister of Finance and Economic Development and Hans Blankenberg, Ambassador from the Netherlands.

The agreement would play a notable role in supporting investment activities between the two countries through establishing fair taxation said Alemayheu at the signing. The agreement will enable the exchange of goods and services and facilitate the flow of capital eliminating double taxation enacted on companies and individuals he added.

The accord will contribute towards ensuring a fair system of taxation in the two countries by dealing with the crucial issue of double taxation while a common agreement across the taxation system is important to establishing mutual economic and investment relations said Blankenberg.

Ethiopia is making progress in establishing a proper tax collection and the Netherlands is committed to supporting the country benefit more from bilateral agreements he said.

The Netherlands has already started on the process to ratify the agreement so that it will come into effect in the shortest possible time as the agreement will benefit both countries  added Blankenberg.

Ethiopia and the Netherlands have a long history of economic cooperation with more then 19 Dutch and joint Ethio-Dutch investment projects currently active in Ethiopia in the areas of cosmetics and brewery he said.

The agreement will benefit these efforts as well as attracting more investors into the country concluded Blankenberg.

Source: Ethiopian Press Agency