Tanzania – Tanzania and the Czech Republic have signed a new agreement to stop double taxation and prevent tax evasion, viewing to encourage more business and investment between the two countries.
The signing ceremony took place in Dar es Salaam at the Ministry of Finance as Tanzania's Minister for Finance, Dr. Mwigulu Nchemba, signed the deal on behalf of Tanzania. The Czech Republic was represented by its Ambassador to Tanzania, Ms. Nicol Adamcová, who is based in Nairobi, Kenya.
The agreement is officially called the Agreement on the Avoidance of Double Taxation and Prevention of Fiscal Avoidance and Evasion in Respect to Tax on Income.
Dr. Nchemba said the deal will stop investors from being taxed twice—once in Tanzania and once in the Czech Republic.
“This agreement supports President Samia Suluhu Hassan’s plan to open up our economy,” he said. “It will help both Tanzanian and Czech investors do business without tax problems.”
He also said countries with tax agreements like this one attract up to 30 percent more foreign investment, according to the Organisation for Economic Co-operation and Development (OECD).
Dr. Nchemba added that Tanzania expects investors from the Czech Republic to invest in sectors such as car and airplane manufacturing, electrical equipment, and machines. These investments could help grow Tanzania’s factories, create jobs, and build the economy.
Ambassador Adamcová said the agreement is a strong sign of trust between the two countries.
“I am happy we signed this deal. It shows that our countries trust each other,” she said. “It will also help Tanzanian investors who want to do business in the Czech Republic.”
She said the agreement proves that both countries offer safe and stable environments for business.
In 2022, trade between Tanzania and the Czech Republic reached about USD 16.2 million, according to UN COMTRADE data. Most of the trade was in machines, electrical tools, transport technology, and agricultural goods.
This new agreement is expected to increase trade and investment between the two nations.
Tanzania is working hard to attract more foreign investors and the agreement shows that the country is serious about making business easier and fairer.
For the Czech Republic, the deal opens up opportunities in Tanzania, which is seen as a gateway to larger East and Southern African markets.
Now that the agreement is signed, both governments will need to make sure it is well understood and followed. This includes training tax officials and informing investors about how it works.
If the agreement is well implemented, it could become a model for other tax deals with different countries. This would further help Tanzania attract new investors and boost economic growth.