Ghana and the Czech Republic have signed a Double Taxation Agreement to enable nationals of both countries to pay income taxes only once to one of the countries.
The Minister of Finance, Mr Ken Ofori-Atta, signed on behalf of Ghana, while the Czech Ambassador to Ghana, Ms Margita Fuschova, signed on behalf of her country.
A statement issued by the Ministry of Finance in Accra explained that the agreement came after the two countries concluded negotiations for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion protocol with respect to taxes on income.
“The agreement gives investors a stable and predictable tax environment and consequently will encourage investments in both countries,” it said.
While the agreement eliminates the incidence where income from both countries are taxed twice, the protocol will increase Ghana’s Exchange of Information network, which allows treaty partners to exchange information in order to mitigate tax risk and tax evasion across borders.
The statement said tax evasion through the mutual assistance in the collection of taxes would also be reduced.
“Furthermore, cross-border trade and investments between the two countries by the elimination of tax impediments will be greatly enhanced.
“The agreement will also foster diplomatic and other relations between the two countries,” the statement added.
Mr Ofori-Atta expressed the hope that diplomatic and economic ties would improve with the signing of the agreement.
Ms Fuschova also expressed similar sentiments, saying she looked forward to improving relations between the two countries reminiscent of the 1960s.