Update on the DTAA with the Republic of Angola
At the Cabinet Meeting held last week on the 19th of August, it was noted that the Double Taxation Avoidance Agreement (Republic of Angola) Regulations 2022 would be promulgated.
It will be recalled that a Double Taxation Avoidance Agreement (DTAA) was signed between the Republic of Mauritius and the Republic of Angola and that it currently awaits ratification. The DTAA with the Republic of Angola would:
- provide tax certainty to investors of the two countries in their dealings with Mauritius or Angola, as the case may be;
- provide mechanisms to –
- (i) combat tax evasion and other malpractices through collaboration between the two authorities in terms of exchange of information and lending assistance to each other for the collection of tax due to the concerned tax authority; and
- resolve tax disputes that may arise, through a mutual agreement procedure; and
- create a conducive environment for greater investment flows from the
Mauritian global business sector to Angola, by providing tax incentives
DTAAs are an important consideration in cross-border investment and structuring decisions as they assist in countering the levy of taxes twice on the same income. As at date, Mauritius has concluded a network of DTAAs with 45 countries and is party to other treaties which are currently under negotiations.
Should you require any advice or clarification on your cross-border structuring needs, you can write to us on bd@mitcoworld.com