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Business News of Monday, 24 March 2014

Source: GNA

Ghana and Denmark sign Double Taxation Agreement

Ghana and Denmark have signed a Double Taxation Agreement, moving the bilateral cooperation between the two countries to another level.

A Double Taxation Agreement regulates the tax treatment of income or capital gains in situations where the same taxpayer is subject to tax in two states with respect to the same income or capital gains.

To avoid such an unpleasant occurrence some countries enter into agreements with other countries so that their citizens who are resident and earning income in some other countries become protected.

Mr Kweku Ricketts-Hagan, Deputy Minister of Finance signed on behalf of Ghana while Mr Mogens Jensen, Minister of Trade and Development Cooperation initialled for Denmark.

Commenting on the agreement, Mr Ricketts-Hagan said the aim of the partnership is to help eliminate the occurrence of double taxation between the two countries. Besides, it would help remove impediments that hinder the movement of capital goods for the promotion of international trade and foreign direct investment.

Mr Ricketts-Hagan said the double taxation agreement between the two countries would further improve the bilateral cooperation between the two countries. He said despite its middle-income status, Ghana would still require support for its development programmes and projects to bring the people out of poverty.

Mr Jensen said the signing of the agreement was a good sign of strong cooperation between the two countries. He said Denmark would still be a strong partner for Ghana in the quest to accelerate development and economic growth.

Ghana already has Double Taxation Agreements with eight other countries, including Britain, France, Italy and Germany.