Dangers of Double Taxation Agreements in Financing Development: Case Studies of Tanzania DTAs with South Africa and India

Tanzania has nine Double Taxation Agreements (DTAs) in place with the following countries: Zambia (1968), Italy (1973), Denmark (1976), Finland (1976), Norway (1976), Sweden (1976), India (1979), Canada (1995), and South Africa (2005). Tanzania is also currently negotiating DTAs with the Netherlands, the United Kingdom, the United Arab Emirates, Mauritius, Kuwait, Iran and China without any publicly known or democratically scrutinised negotiation policy. In addition, Tanzania has bilateral investment treaties with nineteen countries and seven other investment agreements with regional economic blocs.

The latest Agreement between Tanzania and India for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income was signed in Dar es Salaam on 1st January 1979 This Agreement applies to taxes on income imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the way they are levied.

The Agreement between Tanzania and South Africa for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income was entered into on 15th June 2007.

This report presents study findings on three main items: a critical review of DTAs signed by Tanzania with India and South Africa; an analysis of the dangers that DTAs signed by Tanzania with India and South Africa pose towards financing development in Tanzania; and policy recommendations on the key considerations that Tanzania needs to incorporate during the negotiations or re-negotiation of such DTAs. Click here to read more

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