Zimbabwe, Switzerland ink tax deal
CLOUDINE MATOLA
Zimbabwe and Switzerland have signed a double taxation agreement (DTA) aimed at enhancing tax certainty and promoting international investment and trade, Business Times can report.
Speaking at the signing ceremony in Harare yesterday, Finance Minister Professor Mthuli Ncube said the agreement will prevent income already taxed in one country from being taxed again in the other, thereby encouraging cross-border investment.
“The imposition of similar taxes on the same income negatively affects trade, technology transfer, and expertise. This agreement ensures fair contributions to government revenue while preventing double taxation on income such as dividends, royalties, and management fees,” Ncube said.
He emphasized that, with the rise of e-commerce and sophisticated cross-border transactions, tax systems must adapt to prevent loopholes and treaty shopping. “This agreement also addresses tax residency manipulation, which undermines domestic resource mobilization. It includes anti-treaty shopping provisions and facilitates the exchange of taxpayer information to combat tax evasion and illicit financial flows,” he added.
Swiss Ambassador Stéphane Rey hailed the agreement as a milestone in strengthening economic ties. “This DTA guarantees tax certainty, fosters bilateral economic relations, and enhances cooperation in tax matters. By reducing the risk of double taxation, it promotes international investment and trade. Businesses and individuals are more likely to invest when they are assured of fair tax treatment,” Rey said.
He expressed optimism that the agreement would contribute to a more prosperous future for both nations. “Bilateral tax agreements play a crucial role in international economic relations while protecting taxpayers’ rights. This DTA stands as a testament to the enduring friendship and cooperation between Zimbabwe and Switzerland,” he added.
