Cameroon and China have signed a double taxation treaty (DTT) after 10 years of negotiations.
The treaty was signed by Cameroon’s Minister of Finance, Louis Paul Motaze, and China’s Vice Minister of Finance, Zou Jiayi, in the Chinese capital, Beijing, on Tuesday, October 17.
The DTT is designed to eliminate double taxation on income and capital gains derived from both countries.
It will also help to prevent tax evasion by traders of both nations.
“China being one of Cameroon’s leading economic and trade partners, it was necessary to negotiate a tax treaty, in order to remove the obstacles to the tax system of trade between the two countries, in particular the double taxation of companies operating in both countries,” Minister Louis Paul Motaze.
“This agreement will undoubtedly boost trade between Cameroon and China, and will further attract Chinese investment to Cameroon,” he added.
The treaty encompasses various sources of income, such as business profits, capital gains, dividends, interest, royalties, and personal services.
Additionally, it encompasses provisions that facilitate the exchange of information between the tax authorities of both countries.
The signing of the Double Taxation Treaty (DTT) marks a significant milestone in the relationship between Cameroon and China.
Additionally, this will enhance China’s growing economic influence on a global scale.
Yesterday, China also signed a similar taxation treaty with Senegal, as reported by the Chinese news website, China Daily.
The country’s tax treaty networks expanded to 114 countries and regions with the addition of two treaties with Cameroon and Senegal.