Dar es Salaam. Tanzania and Turkey have formally signed two Double Taxation Avoidance agreements.
This strategic move aims to eliminate double taxation and prevent tax evasion on income.
The signing ceremony took place at the Hyatt Regency Hotel in Dar es Salaam.
The minister for Finance, Amb Khamis Mussa Omar, represented the Tanzanian government during the proceedings.
He noted that this marks the thirteenth such agreement Tanzania has established with international partners.
The treaty intends to bolster investor confidence by removing the risk of dual taxation across different jurisdictions.
Ambassador Omar emphasised that these agreements work alongside Bilateral Investment Treaties to stimulate economic growth.
He explained that robust tax frameworks are essential for attracting significant foreign direct investment.
This legal clarity positions Tanzania as a more attractive destination for Turkish capital and global markets.
Although a bilateral investment protection treaty has existed since 2011, the lack of a taxation agreement remained a significant gap.
This new development serves as a clear signal that Tanzania is ready to expand its commercial ties with Turkey.
Economic relations have grown steadily following the presidential visit to Turkey in 2024.
Trade volume between the two nations reached $281.68 million during that period.
The Tanzanian government continues to implement reforms to enhance the national business environment.
These improvements include the digitisation of tax systems and the simplification of business registration processes.
Efforts to reform land laws and dispute resolution mechanisms are already yielding positive results.
Tanzania is currently ranked among the leading investment destinations in Sub-Saharan Africa.
Deputy Permanent Secretary for Foreign Affairs, Amb Said Shaib Mussa, highlighted the long history of diplomatic ties dating back to 1963.
The partnership has expanded to encompass sectors such as education, health, transport, and defence.
This signing fulfills commitments made during high-level diplomatic visits in recent years.
Both nations now aim to achieve a joint trade and investment target valued at $1 billion.
The Turkish Ambassador to Tanzania, Dr Bekir Gezer, stated that the treaties will further cement diplomatic and economic bonds.
A forthcoming Joint Commission meeting will review the implementation of these strategic priorities.
Future cooperation will focus on industrial growth, agriculture, tourism, and energy development.
