Doha, Qatar–Egypt and Qatar have signed an agreement to eliminate double taxation on income and prevent tax evasion and avoidance, according to a statement by the Cabinet on February 27.
The agreement comes within the framework of bolstering bilateral economic relations and shoring up cooperation in several fields.
It is also part of Egypt’s efforts to attract local and foreign investments, boost its production capacities, and widen its export base, he added.
The agreement was signed during a high-level meeting held between Prime Minister and Minister of Interior Sheikh Khalid bin Khalifa bin Abdulaziz Al-Thani and Chairman of the Council of Ministers in Egypt Dr. Mustafa Kamal Madbouly at the Amiri Diwan is a legal framework for defining tax relations between the governments of the two countries.
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The Authority said in a statement that the agreement aims to eliminate double taxation and prevent tax evasion, in addition to facilitating and encouraging investments and trade exchange, increasing investment opportunities between the two countries through individuals and corporations and providing them with protection and strengthening international standards of transparency through the exchange of financial information.
The agreement includes terms related to international maritime and air transportation, joint ventures, dividends, interests and royalties, which comes in accordance with strategies that aim to strengthen bilateral economic relations between the governments of the two countries.
The agreement also includes a number of advantages, the most important of which is the exemption of profits resulting from the operation of ships or aircraft in international transport from tax and setting a ceiling for imposing the tax on dividends not exceeding 5% of the total amount of dividends, if the beneficiary owns no less than 10% of the companys distributed capital.
The agreement also exempts government entities from tax on dividends and interest and exempts capital gains from disposing of shares listed in the stock market.
The State of Qatar has signed no less than 90 tax agreements with brotherly and friendly countries to expand the scope of investments and trade exchange. The country is currently conducting a number of negotiations with countries that hold priority for Qatari investment entities.