Accra, Aug 12, GNA - Ghana and the Federal Republic of Germany, on Thursday signed an agreement to check double taxation and Prevent fiscal evasion, with respect to taxes on income, capital and capital gains. The agreement which would also help promote bilateral investment and business organisations was signed by Mr Yaw Osafo-Maafo, the Minister of Finance and Economic Planning, for Ghana and Mr Peter Linder, the German Ambassador for his country.
By the agreement citizens of Ghana and Germany would have the option to choose to honour their tax obligation in any of the two countries.
Ghana's cabinet has approved the agreement, which would be laid before Parliament at it next sitting in September.
Mr Osafo-Maafo explained that the agreement would afford nationals of both Ghana and Germany the flexibility to focus on growing their businesses "without expending too much time of dealing with complex tax issues in two separate jurisdictions".
The Minister said the agreement marked another milestone in the growing bilateral economic and development cooperation between Ghana and Germany.
He described Germany as Ghana's most important development partner. Mr Linder said the agreement represented the very sound basis for the enhancement of private sector investments and the corporate plans of German investors who intend to do business in Ghana.
He said in Germany a sound tax system and good tax administration had been the cornerstone for development under its Good Governance Programme aimed at developing a comprehensive and a customer-oriented taxpayer information concept.
Mr Linder said national and international tax experts would converge in Ghana on September 22, 2004 to discuss the principles of double taxation and other current issues on taxation.