SA, Netherlands in double-tax deal

11 October 2005

South Africa and the Netherlands have signed an avoidance of double taxation treaty in an effort to boost trade and investment.

The treaty will limit the taxing jurisdiction of both states with regard to the flow of and return on investments. Taxes on Dutch companies will now only be paid in the Netherlands.

Speaking at the signing ceremony on Monday, Finance Minister Trevor Manuel said businesses from both countries had indicated that the treaty would strengthen trade relations.

“When foreign companies come to invest in South Africa, one of the things they need to know is that government will not confiscate their products.

“They want to know that they won’t be taxed twice from their countries and here in South Africa. Dutch investors want certainty and they will now invest confidently,” Manuel said.

Dutch Foreign Minister Rudolph Bot said the treaty would facilitate much-needed investment between the two countries.

“This is about facilitating investment after long negotiations. We hope the results will be satisfactory,” he said.

On Tuesday, Bot held talks with his South African counterpart, Nkosazana Dlamini-Zuma, on political and economic relations, peace and security.

Source: BuaNews