Ghana and the Czech Republic have signed a Double Taxation Agreement. The Minister for Finance, Ken Ofori Atta, and the Czech Ambassador to Ghana, Margita Fuschova, respectively signed on behalf of both countries.
This agreement was signed after the two countries concluded negotiations for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income.
The agreement gives investors a stable and predictable tax environment and consequently will encourage investments in both countries.
It will also eliminate the incidence where income from both countries are taxed twice and as well as increase Ghana’s Exchange of Information network, which allows treaty partners to exchange information in order to mitigate tax risk and tax evasion across borders.
In addition, tax evasion through the mutual assistance in the collection of taxes will also be reduced.
Furthermore, cross border trade and investments between the two countries by the elimination of tax impediments will be greatly enhanced.
The agreement will also foster diplomatic and other relations between the two countries.
The Minister for Finance expressed the hope that diplomatic and economic ties will improve with the signing of this agreement. The Czech Ambassador also expressed similar sentiments saying she looked forward to improving relations between the two countries reminiscent to the 1960’s.