The New EAC Taxation System for investors


Kichuguu

Kichuguu

Platinum Member
Joined
Oct 11, 2006
Messages
7,386
Likes
1,239
Points
280
Kichuguu

Kichuguu

Platinum Member
Joined Oct 11, 2006
7,386 1,239 280
EAC scraps double taxation for investors



Lusekelo Philemon


p { margin-bottom: 0.08in; }
EAC Heads of State yesterday agreed to remove double taxation for investors whose companies operate in two or more member countries.
The good news for investors in the region specified that an investor would only pay taxes in one country where the company has its headquarters.
The move is likely to attract more investors into the region with a population of more than 100 million people.
The meeting also issued a number of directives on how to fast-track the EAC Monetary Union.
In another development, EAC Partner States have agreed to collaborate on diplomatic policy affairs.
EAC Deputy Secretary General in-charge of Political Federation, Beatrice Kiraso said that the diplomatic mission protocol will be part and parcel of diplomatic services within the member countries.
The diplomatic mission bill is expected to be endorsed early next year.
Commenting on the EAC Customs Union protocol, President Jakaya Kikwete admitted that there were a number of impediments which need to be addressed.
He said: "We have asked partner states to work on the impediments to development within the region."
Kikwete said that the regional bloc has moved one step ahead in bringing together member countries to promote development.
For his part, the new chairman of the EAC summit, Burundi President Pierre Nkurunziza expressed gratitude to the outgoing chairman President Kikwete for the good job during his tenure.
Kikwete yesterday handed over the one-year chairmanships to the Burundi President.
The meeting was attended by Ugandan President, Yoweri Museveni, Kenyan President Mwai Kibaki , Piere Nkurunziza of Burundi and Rwandan Premier Bernard Makuza, who represented President Paul Kagame.
On Thursday, President Jakaya Kikwete advised the EAC summit to embark on irrigation farming as a way of improving food security, particularly at this time when the region is facing serious impacts of climate change.
President Kikwete said that EAC member countries need to increase food production by applying all available farming technologies as well as using high yielding seeds, fertilisers, herbicides and pesticides.
"We need to consider how to increase irrigation in our agricultural production. Currently, only 5 per cent of our arable land is irrigated; we need to do more. We also need to leverage modern science and technology to increase food production in our respective countries and the region as a whole," he said.
"It is possible to face the challenges ahead of us, if we can play our role in addressing them. We have enough land, rivers and what is needed is to use those opportunities available to produce enough food for our people," Kikwete told the gathering.
Citing Tanzania's example, he said seasonal rains were expected between October and December, but until now, it hasn't rained in any part of the country.

THE GUARDIAN
The more I look deeper into this agreement, the scarier it becomes; Barrick Gold may end up opening their headquaters in Nairobi. Is there any arrangement to redistribute those taxes among the member states in proportion to the level of business activities done by the tax paying investor in each country?
 
MaxShimba

MaxShimba

JF-Expert Member
Joined
Apr 11, 2008
Messages
35,816
Likes
139
Points
160
MaxShimba

MaxShimba

JF-Expert Member
Joined Apr 11, 2008
35,816 139 160
I don't see any benefits. These states are still independent. EAC is more political.
 
Ikimita

Ikimita

JF-Expert Member
Joined
Oct 23, 2010
Messages
302
Likes
5
Points
35
Ikimita

Ikimita

JF-Expert Member
Joined Oct 23, 2010
302 5 35
The more I look deeper into this agreement, the scarier I become; Barrick Gold may end up opening their headquaters in Nairobi. Is there any arrangement to redistribute those taxes among the member states in proportion to the level of business activities done by the tax paying investor in each country?
No doubt some of the economies in the EAC block are destined to lose, Tanzania topping the list. I think the idea is good and valid but I agree with Kichuguu that the taxes should be proportioned according to the level of activities carried out in each country.
 
Abdulhalim

Abdulhalim

JF-Expert Member
Joined
Jul 20, 2007
Messages
16,513
Likes
205
Points
160
Abdulhalim

Abdulhalim

JF-Expert Member
Joined Jul 20, 2007
16,513 205 160
The more I look deeper into this agreement, the scarier I become; Barrick Gold may end up opening their headquaters in Nairobi. Is there any arrangement to redistribute those taxes among the member states in proportion to the level of business activities done by the tax paying investor in each country?
Good point to raise..Lakini I am more skeptical na tax gani wanayoiongelea..maana kama ni cooperate tax basi sisi ni mazuzu wa kupindukia.
 

Forum statistics

Threads 1,237,586
Members 475,561
Posts 29,294,023