22/11/22

INTERNATIONAL TAX: Morocco, Madagascar Seal Taxation Treaty to Stimulate Investment.

As published on moroccoworldnews.com, Tuesday 22 November, 2022.

Morocco, and Madagascar signed on Monday in Antananarivo a non-double taxation agreement to boost the two countries’ prospects of attracting foreign investment.

Tax treaties, also known as double taxation treaties or DTAs, are an agreement between two countries or more aiming to avoid or mitigate double taxation on the same income of the same assets.

The Morocco-Madagascar tax treaty was signed by Acting Minister of Foreign Affairs in Madagascar, Richard Rakotonirina, and Moroccan Ambassador to Madagascar, Mohammed Benjilany.

In a statement, the Malagasy Ministry of Foreign Affairs emphasizes that the “convention not only prevents tax evasion between Madagascar and Morocco but above all strengthens economic and commercial exchanges and encourages investment by companies in both countries.”

The treaty would contribute to the Madagascan government’s efforts to enhance the business climate and the legal framework for investment in the country, the statement explains.

According to the Malagasy Ministry of Foreign Affairs, this agreement involves not only the Ministry of Foreign Affairs, but also the Ministry of Economy and Finance, notably through the General Directorate of Taxes (DGT).

Over the past months, Morocco’s government has introduced a number of tax reforms aiming to enhance the business climate in the country and support the economic rebound from the effects of adverse international conditions.

In June, the government announced that it is considering cutting taxes on the country’s middle class in a bid to preserve the national purchasing power. In addition, the government announced that, as part of the 2023 budget, it is heading towards scrapping import taxes on some categories of imported medications, especially those used for the treatment of chronic diseases.